Connecticut Light & Power - ZREC and LREC Long Term Contracts (Connecticut)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut

Name Connecticut Light & Power - ZREC and LREC Long Term Contracts
Incentive Type Performance-Based Incentive
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Construction, State Government, Installer/Contractor, Tribal Government, Fed. Government, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional
Eligible Technologies Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector Utility
Energy Category Renewable Energy Incentive Programs
Amount Price determined through competitive solicitation




Eligible System Size ZRECs: Projects larger than 100 kW and up to 1 MW in nameplate capacity

LRECs: Projects up to 2 MW in nameplate capacity



Start Date 2012-05-01


Funding Source RPS




Maximum Incentive Maximum bidding price: 325.50 per ZREC; 200 per LREC

Ownership of Renewable Energy Credits Utility


Program Budget Approximately $9.6 million per year ($3.2 million for LREC and $6.4 million for ZREC)




Terms 15-year standard contract
Program Administrator Connecticut Light & Power
Website http://www.cl-p.com/Home/SaveEnergy/GoingGreen/Renewable_Energy_Credits/
Date added to DSIRE 2012-04-25
Last DSIRE Review 2014-12-12



References DSIRE[1]


Summary

In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs).


The state's two investor-owned electric utilities, United Illuminating (UI) and Connecticut Light & Power (CL&P) must enter into 15-year contracts for RECs from zero-emission "Class I" renewable energy facilities (on the customer side of the meter) larger than 100 kilowatts (kW) but not larger than one megawatt (MW). Zero-emission Class I facilities include solar, wind and hydro generators. Resulting zero emission RECs (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on ZREC contracts annually.* The price cap of one ZREC in 2012 was $350 and $325.50 in 2013. The Connecticut Public Utilities Regulatory Authority (PURA) may reduce the ZREC price cap annually by 3% to 7%.


The two utilities also must enter into 15-year contracts for RECs from low-emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low-emission facility" status, but this category could include facilities that generate electricity using fuel cells, biomass or landfill gas. Resulting low-emission RECs (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on LREC contracts annually.* The price cap of one LREC was $200 in 2012 and 2013.


The utilities jointly submitted their six-year solicitation plan in December 2011 and issued their first request for proposals (RFP) in May 2012. Winning bids are evaluated based on project quality, proposed ZREC or LREC price, and compliance with the RFP process. Bids are submitted online. Projects must be located in CL&P's or UI's service territory.


  • PURA is authorized to review this budget and make adjustments after Year 3 for LRECs and Year 4 for ZRECs. It may terminate the program entirely if technology costs do not continue to fall. Because the utilities must spend $8 million per year on new 15-year ZREC contracts and $4 million per year on new 15-year LREC contracts, the total value of the annual solicitation is $120 million for ZRECs and $60 million for LRECs.


Incentive Contact

Contact Name LREC/ZREC Solicitation Information
Department Connecticut Light & Power

Address 66 Curtis Street

Place New Britain, Connecticut
Zip/Postal Code 06052
Phone (877) 947-3873



Website http://www.cl-p.com
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: S.B. 1243 (Public Act 11-80)
Date Effective 2011-07-01
Date Enacted 2011-07-01


Authority 2: Conn. Gen. Stat. § 16-244r et seq.




















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"