Palmetto Clean Energy - Setting the PaCE for South Carolina's Future

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Request for Renewable Energy Certificates from Renewable Energy Generators Located in South Carolina

I. Introduction

The purpose of this document is to notify owners and future owners of solar photovoltaic (“solar pv”), wind, hydro, and biopower facilities that Palmetto Clean Energy, Inc. (“PaCE”) seeks to purchase Renewable Energy Certificates (“RECs”) from facilities that deliver energy or will deliver energy to Duke Energy Carolinas, LLC (“Duke Energy”), Progress Energy Carolinas, Inc. (“Progress Energy”), or South Carolina Electric & Gas Company (“SCE&G”) in calendar-year 2013. This document describes (i) the PaCE clean energy program, (ii) the renewable resources sought by PaCE, (iii) renewable generator eligibility criteria, and (iv) the timing and process by which to submit a bid to PaCE. Those persons or entities wishing to submit a bid to PaCE should read the Bidder Instructions below.

II. PaCE Program Description

PaCE is a South Carolina non-profit corporation with tax exempt status under Section 501(c)(3) of the U. S. Internal Revenue Code. PaCE was created to support the development of South Carolina-produced renewable energy resources. In furtherance of its mission, PaCE receives contributions, primarily from electric utility customers in South Carolina, which are used to support the development of renewable energy resources such as solar pv, wind, hydro, and biopower. PaCE aggregates the contributions its receives, selects and contracts with the owner of a renewable generator, and then pays the owner of the renewable generator a premium above the value of the energy for every kilowatt-hour of renewable energy delivered to the electric grid. In exchange for the premium, the owner of the renewable generator transfers the title to the REC(s)1 associated with the generation of renewable electricity to PaCE. While contributions to PaCE are tax-deductible, premiums paid by PaCE to the owner of a renewable generator are considered taxable income.

III. Bidder Instructions

Facilities generating new renewable energy are eligible if they began operation or were repowered January 1, 1997 or later.

  1. A. Eligible Renewable Resources
    Owners and future owners of a Renewable generator are strongly encouraged to review the PaCE program eligibility guidelines at http://www.palmettocleanenergy.org/producer/eligibility-criteria.asp prior to submitting a bid to PaCE. Generally, the following types of renewable generation facilities meet PaCE program eligibility criteria: solar pv; wind; geothermal; hydropower; biopower (i.e., the conversion of wood waste, energy crops, agricultural waste/animal waste /other organic waste, or wastewater methane and landfill methane to electricity); biodiesel-to-electricity; and electricity generation from fuel cells and hydrogen-powered generators, provided the fuel source is renewable. In addition, PaCE requires that the renewable generation facility be located in South Carolina and deliver all its energy to one of the following electric utilities: Duke Energy, Progress Energy Carolinas, or SCE&G.

  2. B. Period for Which Resources are Sought
    PaCE seeks to purchase RECs from an owner or future owner of a renewable generator that delivers energy or will deliver energy to Duke Energy, Progress Energy, or SCE&G in calendar-year 2013.

  3. C. Quantity of Resources Sought
    PaCE seeks to contract with the owner of a renewable generator who will deliver a minimum of 10 RECs per year. At this time, there is no maximum limit in this bid.2

  4. D. Premium Paid to Owner of Renewable Generator
    Selection of renewable generators and the premium paid for renewable energy certificates generated will be based on a competitive bid and negotiation process. For reference, PaCE currently offers very small generators, such as residential rooftop solar PV generators (less than 6 kW in size) located at residences, a premium of $100 per REC. In soliciting larger quantities of RECs, it is PaCE’s expectation that bidders who are able to build larger facilities may reach certain economies of scale and may require a lower premium than what is required by residential rooftop PV installation owners.

    Bidders should note that PaCE will pay a premium only for RECs, which are measured in MWhs. Metering of each facility’s output, as measured in kilowatt-hours, is the means by which PaCE verifies energy and REC output from a renewable generator. Bidders are advised that PaCE will not pay a premium for capacity (as measured in kilowatts or kW), time of generation (such “peak hours” or “off-peak” hours) nor for capacity factor.

  5. E. Title to RECs
    In exchange for payment of the RECs, the owner of the renewable generator shall transfer title to the RECs associated with the generation of renewable electricity to PaCE.

  6. F. Term
    PaCE seeks to secure RECs from the owner of the renewable generator for a minimum term of one year but no longer than five years.

  7. G. Bid Submission Process
    Owners of renewable generators who are interested in participating should submit a bid for RECs produced by their renewable generation facility by providing the information requested on the attached Bid Document in Section 4. This Bid Document will be reviewed by a committee appointed by the PaCE Board of Directors and will be treated as confidential.

  8. H. Bidding Procedure
    Bids should be e-mailed to info@palmettocleanenergy.org or, alternatively, responses may be mailed to: PaCE Bidder Response, Palmetto Clean Energy, Mail Code PCE, 220 Operation Way, Cayce, SC 29033-3701. Inquiries about the process must be in writing and, preferably by e-mail, to: info@palmettocleanenergy.org. Inquiries about this Request for RECs (“RFP”) and PaCE responses will be posted on the www.palmettocleanenergy.org website for all interested parties to view. The source of the inquiry will not be identified.

  9. I. Bid Evaluation Criteria
    Bids received will be reviewed by a committee appointed by the PaCE Board of Directors using the following criteria, listed below in no particular order of importance:
    • a) Compatibility with the PaCE Program Description and adherence to RFP specifications
    • b) Completeness of information supplied
    • c) Likelihood that the facility will reach commercial operation, if new
    • d) When the facility will reach interconnection and commercial operation milestones
    • e) Facility owner’s demonstration of experience in power generation
    • f) Premium requested from PaCE
    • g) Environmental impact of the generation
    • h) Any other relevant information
  10. J. Notification and Contracting Process
    After receipt of a bid, PaCE will send each bidder a letter indicating whether their bid qualifies for the Bidder List. Bids that do not qualify for the Bidder List may not be resubmitted for a period of sixty (60) days. In reviewing bids, PaCE may request bidders to provide more information. Bids will be evaluated in accordance with the evaluation criteria presented in Section III.H, above. If selected, the owner of the renewable generator will be required to interconnect the facility to the incumbent grid operator where the facility is located (i.e., Duke Energy, Progress Energy, or SCE&G), and enter into a Power Purchase Agreement with the incumbent grid operator to sell all the energy produced at the facility to the incumbent utility (i.e., Duke Energy, Progress Energy, or SCE&G). After this process has been completed, the generator will enter into a REC purchase agreement with PaCE.

  11. K. Existing Renewable Generators
    Existing renewable generators who are currently receiving a PaCE premium will continue to receive the premium stated in their current contract for the term of their current contract. They will not be “displaced” by new generators. While PaCE agreements will not provide a guaranteed purchase amount, they will provide a maximum that PaCE desires to purchase in a period. If PaCE needs exceed that maximum due to unanticipated demand, additional bids will be selected for other generators to enter the program. Existing generators are not prohibited from submitting bids for additional participation.

  12. Disclaimer
    THIS BID PROCESS IS NOT A PROCUREMENT. THIS BID PROCESS IS NOT A COMMITMENT BY PaCE OR ANY UTILITY OR ELECTRIC POWER PROVIDER TO PURCHASE ANY PRODUCT OR ENERGY OR TO TAKE ANY SPECIFIC ACTION. PaCE RESERVES THE RIGHT NOT TO AWARD ANY AGREEMENTS AS A RESULT OF THIS RFP AND, IN THE EVENT AN AGREEMENT IS ENTERED INTO FOR THE PURCHASE OF RECS, TO TERMINATE THE AGREEMENT AT ANY TIME.

    ALL PROPOSALS WILL BE THE PROPERTY OF PaCE. BY SUBMITTING A PROPOSAL YOU HEREBY ASSIGN ALL RIGHTS IN AND TO SUCH PROPOSAL TO PaCE.

    THE INFORMATION WITHIN THIS BID PROCESS MAY CHANGE, OR THE BID PROCESS MAY BE CANCELLED, AT ANY TIME AND WITHOUT NOTICE. USE OF THIS INFORMATION CONSTITUTES ACCEPTANCE FOR USE IN AN “AS IS” CONDITION. THERE ARE NO WARRANTIES WITH REGARD TO THIS INFORMATION. IN NO EVENT SHALL PaCE BE LIABLE FOR ANY DAMAGES OR COSTS WHATSOEVER ARISING OUT OF OR IN CONNECTION WITH THIS BID PROCESS OR YOUR RESPONSE. ANY USE OF THIS INFORMATION IS AT YOUR OWN RISK.

    AS A RESULT OF PARTICIPATION IN THE PaCE PROGRAM, THE RENEWABLE ENERGY GENERATOR WILL RELINQUISH ALL RIGHTS TO THE OWNERSHIP OF ANY RECS ASSOCIATED WITH THE ENERGY GENERATION FOR WHICH PaCE PAYS A PREMIUM. RECS ENCOMPASS ANY AND ALL ENVIRONMENTAL ATTRIBUTES ASSOCIATED WITH THE RENEWABLE GENERATION PURCHASED BY PaCE. PaCE WILL ASSUME OWNERSHIP OF THESE RECS UPON PAYMENT OF THE PaCE PREMIUM FOR THE RECS.


Review the Request for Renewable Energy Certificates Bid Form. (PDF, 89KB)




1 A REC, also known as a Renewable Energy Credit, is created for each megawatt-hour (“MWh”) of renewable electricity generated. (1 REC = 1 MWh = 1000 kilowatt-hours (“kWhs”). Purchasers of RECs, such as PaCE, provide renewable energy project developers and/or owners with a revenue stream that supplements the revenue they secure from the sale of the project’s electricity to the grid operator. RECs are transferable; they represent the legal rights to the environmental benefits associated with the generation of renewable energy.

2 Recall that 1 REC is produced when 1 MWh = 1000 kWhs of renewable electricity is produced. As an example, 600 RECs are produced when 600,000 kWhs of energy are generated from a renewable source. And further, a 375 kilowatt (“kW”) solar PV array operating for 365 days at an 18% capacity factor will produce approximately 600,000 kWhs in a year.