Connecticut Issues New RFP for Offshore Wind, Fuel Cell, and Anaerobic Digestion Projects; Sets April 2018 Deadline for Bid Submissions

Last week, the Connecticut Department of Energy and Environmental Protection (DEEP) issued a request for proposals to procure up to 899,250 MWh/year of renewable energy and associated Renewable Energy Certificates (RECs) from offshore wind, fuel cell, and anaerobic digestion renewable energy resources, pursuant to long-term contracts of up to 20 years. Bidders must submit completed proposals to DEEP by April 2, 2018. Connecticut will announce winning bids in June 2018. 

The RFP is the second large-scale solicitation for offshore wind energy issued by a New England state since 2017, and continues an established regional trend of meeting statutory requirements to serve load with renewable generation in part by seeking competitive bids for such generation.   

PROJECT REQUIREMENTS

Resources must be located in either New England or an adjacent control area, deliver to the ISO-NE transmission system, and reach commercial operations no earlier than July 1, 2019 and no later than December 31, 2025. Bid resources may be co-located with an energy storage system. All costs for interconnecting a proposed project to the existing transmission and distribution system, as well as any necessary system upgrades, will accrue to the bidder.

Table 1: Eligible Resources[1]

In the event that Connecticut selects resources delivering up to 899,250 MWh/year through the RFP, offshore wind may provide most but not all such delivered energy, subject to a fuel cell and anaerobic digestion annual carve-out of 74,250 MWh. Where a bidder or an affiliate has bid an offshore wind generation project into the ongoing Massachusetts RFP pursuant to Section 83C of Chapter 169 of the Acts of 2008 (83C RFP), that bidder must provide a complete copy of its 83C RFP bid as an appendix to its Connecticut submission. Evaluators will use the submitted 83C RFP bid to further determine the reasonableness of the bidder’s Connecticut proposal, including bid price.  

The RFP also contemplates that where an electric distribution company (EDC) in another state may procure a portion of the renewable energy capacity of a proposed project – for example, upon a project’s selection in the 83C RFP – the bidder may submit a proposed bid price that reflects partial procurement by the out-of-state EDC. Any such “positive contingent” bid must also include an alternative, standalone contract price in the event that only Connecticut selects the resource for long-term contracting.

BID AND CONTRACT REVIEW

The RFP contemplates a multiple stage evaluation, ranking, and selection of submitted bids, including (1) an initial review to ensure satisfaction of eligibility and threshold requirements, and (2) a detailed quantitative and qualitative evaluation of each proposal using numerous identified criteria. Connecticut regulators, incumbent EDCs, and an independent consultant will conduct the initial evaluation and ranking of bids. The DEEP Commissioner will select any winning bid(s), upon consultation with state regulators, including the Connecticut Attorney General and the Office of Consumer Counsel. Any executed long-term contract between a winning bidder and the Connecticut EDCs will be subject to review and approval by the Connecticut Public Utility Regulatory Authority (PURA).  

NEXT STEPS

The RFP will adhere to the following timetable:    

Table 2: RFP Schedule[1]

For questions regarding the RFP or any other energy issue, please contact James M. Avery at javery@pierceatwood.com or 617.488.8125, Jared S. des Rosiers at jdesrosiers@pierceatwood.com or 207.791.1390, or Andrew O. Kaplan at akaplan@pierceatwood.com or 617.488.8104.

[1] RFP at 3.

[2] Id. at 8.