4.1 Public Solicitations

The Taskforce believes that the procurement of SRECs by retail electricity suppliers operating in the State of Delaware should be implemented through public solicitations, which can be efficiently managed by the SEU.[7] The SEU will issue solicitations based on the SREC requirements of the participating retail electricity suppliers. The solicitations will be for SRECs and other environmental attributes[8] created by the Eligible Energy Resources, but will not cover the energy output of the resources. Upon receipt and evaluation of the applications received in response to each solicitation, the SEU will award bids and execute agreements based on the criteria set forth in the SREC Procurement Pilot Program.

4.2 Owner Qualifications

To apply as an owner (an “Owner”) of an Eligible Energy Resource pursuant to the SREC Procurement Pilot Program: (a) if the resource has an aggregate nameplate rating of at least 100 kilowatts (“kW”) (DC) at standard test conditions (“STC”), the applicant must own, lease, control or be the direct assignee of all of the SRECs created by such resource; or (b) if the resource has an aggregate nameplate rating of less than 100 kW at STC, the applicant must own, lease, control or be the direct assignee of all of the SRECs created by such resource and at least one other Eligible Energy Resource.[9] Any other party intending to participate in the SREC Procurement Pilot Program will be required to submit an application jointly with an entity that has executed agreements[10] to control the SRECs produced by two or more Eligible Energy Resources (such entity, an “Owner Representative”).

An Owner that is qualified to submit an application on its own behalf may, at its option, elect to designate an Owner Representative. Affiliates of retail electricity suppliers are permitted to participate in the SREC Procurement Pilot Program as Owners or Owner Representatives (so long as they satisfy the applicable requirements for being an Owner or Owner Representative).

4.3 Eligible Projects

To qualify for participation in the SREC Procurement Pilot Program, a Generation Unit must: (a) qualify as a “Solar Photovoltaic Energy Resource” in accordance with the DPSC rules; (b) be eligible for certification as an Eligible Energy Resource under REPSA; and (c) be comprised of new (i.e., unused) equipment. Only Generation Units that have received approvals of their “Accepted Completed Solar System Interconnection Applications” dated December 1, 2010 or later will be eligible to participate in the SREC Procurement Pilot Program. Tier 2-B and Tier 3 projects may only participate in the SREC Procurement Pilot Program if they do not receive any supplemental funding from a public source (other than grants in lieu of investment tax credits). Tier 1 and Tier 2-A projects may accept such grants in lieu of investment tax credits as well as grants associated with the Delaware Green Energy Program (“GEP”).

In order to increase the likelihood that a wide variety of residential and commercial projects have an opportunity to participate in the SREC Procurement Pilot Program, the Taskforce has established distinct tiers of Generation Units (based on their nameplate capacity) for which different pricing, bid rules and other contract terms and conditions will apply. The tiers are as follows:

GENERATION UNIT TIER DESIGNATIONS

Tier

Nameplate Rating
(DC at STC)

1

Less than or equal to 50 kW

2-A

Greater than 50 kW but less than or equal to 250 kW

2-B

Greater than 250 kW but less than or equal to 500 kW

3

Greater than 500 kW but less than or equal to 2 MW

4

Greater than 2 MW[11]

 

The capacity of a Generation Unit and its applicable tier will be based on the aggregate nameplate rating of all solar arrays: (a) that are located on the same parcel of land (as established by the local taxing authority) or share a single utility interconnection point; and (b) for which applications are submitted for the same compliance year.[12]

4.4 Ongoing Program Evaluation

The Taskforce will evaluate the SREC Procurement Pilot Program on a periodic basis to consider whether any changes or modifications are necessary or advisable. Any changes or modifications to the program (e.g., the allocation of SRECs among the different tiers) would be prospective only and executed SREC Transfer Agreements (as defined below) would not be affected. Any material changes to the SREC Procurement Pilot Program would be subject to approval by the appropriate regulatory bodies.

[7] It is anticipated that the SEU will select a third party (the “SREC Procurement Agent”) to perform some or all of its duties with respect to the SREC Procurement Pilot Program, including conducting solicitations, evaluating bids and executing agreements on behalf of the SEU. If it does so, the process for selecting the SREC Procurement Agent, and the choice of the SREC Procurement Agent itself, would be subject to the consent of the participating retail electricity suppliers.

[8] In addition to SRECs, environmental attributes include those attributes created from the Generation Unit’s generation of electricity from solar energy in contrast with the generation of electricity using nuclear or fossil fuels or other traditional resources, such as emission credits, carbon credits, air quality credits, green credits, carbon tax credits, emissions reduction credits, greenhouse gas credits, certificates, tags, offsets, allowances and similar products, rights, claims or benefits, whether now existing or arising in the future. However, environmental attributes do not include tax credits other than carbon tax credits.

[9] An Owner need not have been awarded SREC Transfer Agreements with respect to its Eligible Energy Resources.

[10] An Owner Representative need not have been awarded SREC Transfer Agreements with respect to its Eligible Energy Resources. It need only have executed agreements with Owners of two or more such resources.

[11] The procurement of SRECs for Tier 4 for the 2011 compliance year was satisfied in full with the purchase of SRECs from the Dover Sun Park Project. Accordingly, the process for procuring SRECs from Tier 4 projects is not included in the initial pilot SREC Procurement Pilot Program.

[12] An Owner may, at its discretion, include additional solar arrays at other locations, in which case the capacity of such arrays will be aggregated for purposes of determining the capacity and tier of such project.

One comment

Comments are closed.