NYSERDA Issues New RFP for Tier 1 RECs With Focus on Energy Storage

by Harris Beach PLLC

On April 25, 2018, the New York State Energy Research and Development Authority (“NYSERDA”) issued its second Request for Proposals (“RFP”) to procure renewable energy credits (“RECs”). NYSERDA is seeking up to 20 projects to support 1.5 million megawatt-hours of renewable electricity per year under Tier 1 of the Renewable Energy Standard (“RES”), a component of the Clean Energy Standard (“CES”). This announcement closely follows NYSERDA’s award last month of $1.4 billion for projects generating up to 3.2 million megawatt hours.

Unlike the first RFP to procure RECs issued by NYSERDA last June, this new RFP encourages submissions that cost-effectively pair renewable energy with advanced storage technologies. In addition, the RFP requires bids to include new standards and requirements for community outreach and planning, and a commitment in certain instances to pay the prevailing wage. Bidders submitting a proposal including energy storage are required to complete two applications, one with energy storage, and one without.  According to the new RFP, because market rules and energy storage capabilities continue to evolve, bidders considering energy storage are encouraged to consult with the New York Independent System Operator (“NYISO”) and/or any interconnecting utility to ensure the proposed project configuration complies with existing tariffs and other requirements.

A bidder who sufficiently demonstrates experience with comparable energy storage projects will be eligible for an award if the proposed energy storage system is either: (1) co-located with the generation behind a single wholesale or retail meter in the New York Control Area ("NYCA"), (2) co-located with the generation behind a separate wholesale or retail meter in the NYCA, or (3) located in a separate location from the generation inside the NYCA. There is a “2018 Solicitation Resources” page on NYSERDA’s website that includes information regarding projects paired with energy storage as well as guidance for siting on agricultural lands.

The new RFP will be conducted through a three-step process. First, for projects that have not already been determined eligible facilities, there will be a determination of the resource eligibility through the New York Generation Attribution Tracking System by May 16, 2018, with a corresponding NYSERDA decision by June 1, 2018. Second, bidders must submit an online application by June 12, 2018 for qualification in order to submit a bid proposal (applicants will be notified of their status by July 19, 2018). Finally, qualified bidders must submit their bid proposals electronically by August 15, 2018. NYSERDA will conduct a webinar on the new RFP on May 2, 2018.

Award winners are expected to be notified in October of 2018.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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