Massachusetts has launched its first in the nation Clean Peak Energy Portfolio Standard
After an extensive rules development process, on June 9, 2020, the Massachusetts Department of Energy Resource (DOER) issued the Final Proposed Regulations for the Clean Peak Energy Portfolio Standard (CPS), to be filed with the Secretary of State on July 9 and go into effect in late July. The CPS will provide a new revenue stream for eligible Clean Peak Resources (CPRs) – including new Qualified Renewable Portfolio Standard (RPS) Resources, Qualified Energy Storage Systems (QESS), legacy RPS Resources that are co-located with a QESS, or eligible Demand Response Resources – through the conveyance of Clean Peak Energy Credits (CPECs) associated with production or discharge during specified Seasonal and Monthly Peak Periods.
About the CPEC Calculator
The CPEC Calculator is a screening tool designed to estimate the expected annual CPEC production based on user-defined Clean Peak Resource characteristics, and estimates the associated revenue that could be earned based on an assumed CPEC market price set either by the user on a year-by-year basis or at a user-specified percentage of the proposed annual Alternative Compliance Payment (ACP) rate. It was the first of SEA’s support offerings in the MA CPS space, and has now been blended into the Clean Peak Market Outlook (CPMO) service, a combined effort between SEA and Customized Energy Solutions (CES). The CPEC Calculator reflects the eligibility, Clean Peak Periods, multipliers and other rules contained in DOER’s Final Proposed Regulations for the CPS.
Key Input Features:
- Set project characteristics such as project scale, expected lifetime, annual production degradation rate, commercial operation date, and qualification dates.
- Select ‘multipliers’ applicable to the specified project.
- Specify CPR’s typical annual 8760 hour production profile, by either:
- Inputting a unique user-defined Production Profile
- Choosing from one of our included Proxy Production Profiles for the following technologies:
- Utility-Scale Solar: (Fixed and Single-Axis Tracking, Single-Axis Bifacial)
- DG Solar: (Fixed and Single-Axis Tracking Ground-Mount, BTM C&I Rooftop, BTM Residential Rooftop) § Offshore Wind or Land Based Wind
- Standalone QESS (assumes 100% discharge during Clean Peak hours)
- Inputting a Paired RPS-QESS Production Profile with a unique 8760 Resources Production Profile.
- Select estimated CPEC market price as either
- A percentage of the annual ACP rate; or
- A User-Defined CPEC Market Rate per year
- Outputs calculated for both Seasonal CPEC hours and the Monthly CPEC Peak hours (based on historical ISO-NE load data):
- Expected CPEC production per year
- Total Expected CPEC Revenue per year ($/yr) based on the user specified CPEC Marker Price Proxy defined as a % of annual ACP
- CPEC Revenue per MWh Produced/Discharged
- Selecting optimistic and conservative CPEC Market Price Proxies to quickly bound the range of potential CPEC revenues.