The Illinois Power Agency (“IPA” or “Agency”) is conducting two processes to update Renewable Energy Credit (“REC”) prices for the Illinois Shines program (Adjustable Block Program) and the Illinois Solar for All Program (“ILSFA”). The first process is a refresh of inputs into the current REC pricing model to establish the REC prices for the 2023-2024 program year. The second process is a review of REC pricing approaches for consideration of changes in methodology to be included in the next Long-Term Renewable Resources Procurement Plan (“Long-Term Plan”).
Proposed 2023-2024 REC Prices
The Agency has developed proposed REC prices for the 2023-2024 program year. The proposed prices were developed by updating inputs into the REC pricing model the Agency has used in previous delivery years. The Agency is issuing a Request for Stakeholder Feedback on the proposed prices. Comments are due by March 24, 2023. Upon receiving the stakeholder comments, the Agency will use the feedback to consider additional adjustments and seeks to finalize REC prices for the 2023-2024 program year by April 17, 2023.
The Agency has developed proposed REC prices for the 2023-2024 program year. The proposed prices were developed by updating inputs into the REC pricing model the Agency has used in previous delivery years. The Agency is issuing a Request for Stakeholder Feedback on the proposed prices. Comments are due by March 24, 2023. Upon receiving the stakeholder comments, the Agency will use the feedback to consider additional adjustments and seeks to finalize REC prices for the 2023-2024 program year by April 17, 2023.
Update to REC Pricing Model & REC Prices for Subsequent Years
In addition to the current proposed REC prices for the 2023-2024 program/delivery year, the IPA is exploring updating the methodology/model the Agency uses in calculating REC prices starting with the 2024-2025 program year. This separate REC pricing review done by a neutral third party speaks to the Agency’s interest in fostering growth in renewable energy development. In the 2022 Long-Term Plan, the IPA committed to engaging an independent consultant to conduct a review of the REC pricing approach the Agency currently uses for the Illinois Shines and ILSFA programs as part of the preparation of the next iteration of the Agency’s Long-Term Plan. That Long-Term Plan will contain the methodology used for setting REC prices starting with the 2024-2025 program year. The Agency has engaged Sustainable Energy Advantage (“SEA”) to conduct that review. SEA has been involved in the development, analysis and implementation of clean energy policies and markets, particularly throughout the Northeast United States, and has advised a wide range of state government agencies and clean energy market participants across all technologies. The report developed by SEA will be used by the Agency to develop the REC pricing methodology for the next Long-Term Plan.
In addition to the current proposed REC prices for the 2023-2024 program/delivery year, the IPA is exploring updating the methodology/model the Agency uses in calculating REC prices starting with the 2024-2025 program year. This separate REC pricing review done by a neutral third party speaks to the Agency’s interest in fostering growth in renewable energy development. In the 2022 Long-Term Plan, the IPA committed to engaging an independent consultant to conduct a review of the REC pricing approach the Agency currently uses for the Illinois Shines and ILSFA programs as part of the preparation of the next iteration of the Agency’s Long-Term Plan. That Long-Term Plan will contain the methodology used for setting REC prices starting with the 2024-2025 program year. The Agency has engaged Sustainable Energy Advantage (“SEA”) to conduct that review. SEA has been involved in the development, analysis and implementation of clean energy policies and markets, particularly throughout the Northeast United States, and has advised a wide range of state government agencies and clean energy market participants across all technologies. The report developed by SEA will be used by the Agency to develop the REC pricing methodology for the next Long-Term Plan.
SEA will release a written request for stakeholder feedback on March 7, 2023, with comments due on March 28, 2023.
Additionally, SEA will be hosting a public webinar for Illinois Shines and ILSFA stakeholders on Tuesday March 14, 2023 to discuss REC pricing policy issues, options, and implications. To register for the webinar, click the registration link below.
Review of Illinois Shines and ILSFA REC Pricing Approach
Date: March 14, 2023
Time: 1pm-3pm CPT
REGISTER HERE
Date: March 14, 2023
Time: 1pm-3pm CPT
REGISTER HERE
The webinar will include a presentation by SEA followed by an opportunity for Q&A and discussion.
