New York regulators are considering changes to how they procure renewable energy certificates (RECs) for the state's clean energy goals to account for potential challenges to project development.
New York State Energy Research and Development Authority (NYSERDA) this week issued a request for information from stakeholders on its next planned solicitation for Tier 1 RECs, with a focus on timing and scope in light of issues such as the ongoing federal investigation into solar imports from southeast Asia, the availability of key federal tax incentives and state policies to address climate change.
The agency, which oversees the state's REC procurements, said it may need to adjust the process for this year's solicitation in order "to adapt to the changing landscape of large-scale renewable energy development." The date of the solicitation has not yet been finalized, the agency said.
NYSERDA asked for feedback on how the solar investigation and President Joe Biden's decision to delay any potential tariffs could affect the availability and cost of equipment needed for new projects, as well as whether the agency should consider the potential extension of federal tax credits for renewables.
It also asked for input on whether it should adjust the size of the solicitations, which can seek as much as 4.5mn Tier 1 RECs/yr through 2026, and whether it should adopt changes to how it determines the pricing of RECs awarded to projects.
The proposed change would allow winning projects a price adjustment based on the realized inflation between when the bid is submitted and a future development or permitting milestone to be determined. This would apply both to fixed REC price or index REC price contracts.
In the index-price system, the compensation awarded for RECs changes according to a regularly updated index that reflects price fluctuations in the market. For New York, the index will be updated monthly over the delivery term in the contracts.
NYSERDA also issued a separate solicitation for feedback on proposed changes to its index REC settlement formula intended to account for recent changes to the state's electricity market rules. Those changes, approved by federal regulators in May, aim to open the wholesale market to more investment in battery storage, solar and wind projects.
The agency in its most recent solicitation awarded contracts for Tier 1 RECs to 22 solar projects with a combined capacity of over 2,400MW and expected generation of 4.5mn MWh/yr.
New York requires its utilities to obtain 70pc of their electricity from renewables by 2030 and 100pc zero-emissions resources by 2040.
The public comment deadline for both requests for information closes on 28 July at 3pm ET.
