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Competitive Tier 2 Program

 

The Public Service Commission’s October 15, 2020 Order [PDF] established a new, short-term Competitive Tier 2 Program within the Clean Energy Standard (CES). The new Competitive Tier 2 Program aims to maximize the contributions and potential of New York’s existing renewable resources to ensure their continued operations. The Program will support certain existing baseline renewable resources that are selected as part of three annual solicitations.

Second Competitive Tier 2 Solicitation

NYSERDA launched the second Competitive Tier 2 request for proposals, T2RFP21-2, on August 5, 2021. No awards were made under this RFP as all bids exceeded the Confidential Maximum Bid Price. NYSERDA expects to release the third Competitive Tier 2 request for proposals in the third quarter of 2022.

Eligibility

Eligible Competitive Tier 2 generators include existing non-state-owned run-of-river hydropower and existing wind resources located within the State that entered commercial operation prior to January 1, 2015. Generation from eligible facilities not already under contract with NYSERDA will be eligible for Competitive Tier 2 compensation.

2021 Competitive Tier 2 Solicitation

Through its first Competitive Tier 2 solicitation issued on January 22, 2021, NYSERDA selected three projects for award represented by two proposers to retain enough renewable energy in New York State to power nearly 8,300 homes and help support ongoing operations of these existing New York-based renewable energy facilities. The response indicates there is expanding market interest for RECs from Tier 2 eligible generators outside of NYSERDA’s procurements, especially among Community Choice Aggregations which allow local communities to voluntarily negotiate the best price and terms on energy supply, products, and services without direct financial support from New York State.

The awarded projects include:

  • Baldwinsville – Brookfield Renewable Trading and Marketing LP
    • 0.6 megawatt hydroelectric facility located in Onondaga County
  • Talcville – Brookfield Renewable Trading and Marketing LP
    • 1.1 megawatt hydroelectric facility located in St. Lawrence County
  • Moose River Hydro – Energy Ottawa New York
    • 12.2 megawatt hydroelectric facility located in Lewis County

Implementation Plan

NYSERDA filed a Final Tier 2 Re-Sale Implementation Plan [PDF] on October 12, 2021.  The plan includes a description of the Competitive Tier 2 REC re-sale process, timing, and NYSERDA’s interaction with the LSE obligations and reconciliation process.

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