The third and possibly final round the the Supplemental Procurement is approaching quickly. This will be the largest round of the Supplemental Procurement with $15 Million dollars budgeted toward this procurement. The rules and procedure of this procurement will be essentially identical to the first two rounds of the procurement.
This procurement event will again have bid categories based on project size. There will be either two or three size categories in this procurement. The goal of the procurement is to purchase 50% of the RECS bought from systems under 25kW and 50% of the RECS from systems from 25kW to 2MW. This larger category might then be split further into a 25-500kW category and a 500kW-2MW category. This distinction will be made by February 12th at the latest.
For systems in the under 25kW category, this procurement allows for two types of bids:
1. “Identified Systems” must be identified via a signed letter of intent or a contract. All systems over 25kW must be identified via a letter of intent by March 8th to participate in this event.
- “Forecasted Systems” are bid in as a SREC quantity with no specific systems attached to them. Winning speculative bidders have 6 months to identify systems via contract that will generate the SRECs. Forecasted bids can only be for the “under 25kW” category.
The IPA will purchase SRECs from identified and forecasted systems for 5 years at a fixed price. In order to be eligible for this procurement systems either must have been already energized, or will be energized after January 21st, 2015. All identified systems must be energized within 12 months of the March 31st, 2016 bid deadline. Forecasted systems must be identified via a letter of intent or contract within 6 months of the of the bid date and energized within 1 year of the signing of the letter of intent. The energized date marks the beginning of the 5 year period to sell all SRECs to the IPA.
Systems will be categorized by system size and bid separately within their respective categories. The system size tiers are the following:
|Procurement Date||Funds Available||System Size Targets|
|June 2015||$5M||50% – under 25kW
50% – 25- 500kW
|November 2015||$10M||50%- under 25kW
15% – 25-500kW
|March 2016||$15M||50%- under 25kW
The Illinois Power Agency (IPA) procurement is a confidential bidding process to purchase RECS installations located in Illinois. Bidders must bundle individual systems into large blocks which will allow for limited flexibility in individual bid pricing. The procurement uses a closed bidding process; the highest clearing price will remain confidential. However, due to their insight into the market, Carbon Solutions Group has strong indications on what the final prices will be.
The IPA will categorize bids into the three size categories. They will then select winning bids by ranking them from the lowest price to the highest until the budget has been spent. The IPA has a goal of purchasing at least 50% of SRECs from systems in the over 25kW category as available, so will potentially reward higher average winning prices to smaller systems. A benchmark ceiling will be set by the IPA on the highest allowable bid price, and therefore lower bids will have a more likely chance of being selected than higher ones. If your bid is not selected, the IPA will not purchase SRECs from your system during this procurement event. CSG intends to offer and bid a price that balances the chance to win the procurement and that adds meaningful value to system owners.
CSG will manage all administrative paperwork for bidding your system. If your system receives a winning bid, CSG will register your system with the appropriate tracking system so you can begin generating SRECs. Once your system is registered CSG will handle all of the generation, transfers, and invoicing with the IPA.
|March 8th||Forecasted bids and Letters of Intent due to CSG|
|March 20th||Bonding Fees due to CSG (contact CSG for details)|
|March 31st||Bids Submitted to IPA|
|April 6th||Winning Bids Announced by the ICC|
|August 31st||All Forecasted Systems Must be Identified|
|March 2017||All Identified Systems Must be Energized|
|August 2017||All Forecasted Systems Must be Energized|
Installers please read our Installers Process Page for more information.
Please contact CSG directly if you have any questions or concerns.
You may also view our FAQ for answers to other commonly asked questions.