Competitive Tier 2 Program
The Public Service Commission’s October 15, 2020 Order [PDF] established a short-term Competitive Tier 2 Program within the Clean Energy Standard (CES). The Competitive Tier 2 Program aimed to ensure the continued operation of New York’s existing renewable resources. The third and final solicitation of the Competitive Tier 2 program closed on September 15, 2022.
2022 Tier 2 Request for Information (T2RFI22-1)
The purpose of this Request for Information (RFI) is to acquire feedback that will assist the New York State Energy Research and Development Authority (NYSERDA) in assessing current conditions and future needs of the baseline renewable energy fleet and the non-Tier 1 Renewable Energy Certificate (REC) market.
Through this RFI, NYSERDA is seeking information from interested stakeholders, including Tier 2 eligible renewable energy generators, Community Choice Aggregators, Load Serving Entities, voluntary market participants, and other interested parties.
This Request for Information is intended to inform potential future action by the State to support baseline renewable resources in pursuit of the goals of the Climate Act.
The comment period for this RFI ended on Friday, January 20, 2023 and responses are being reviewed by NYSERDA.
Third Competitive Tier 2 Solicitation (T2RFP22-1)
NYSERDA received 15 bid proposals from six entities in response to its third Competitive Tier 2 request for proposals, T2RFP22-1. No awards were made under this RFP as all bids exceeded the Maximum Bid Price set by NYSERDA and the Department of Public Service.
Since the establishment of the Competitive Tier 2 Program in 2020 there have been numerous changes and evolution of the Tier 2 Renewable Energy Certificate (REC) market such as the regulatory change from the Public Service Commission (PSC) requiring Load Serving Entities (LSEs) to utilize New York RECs for voluntary green retail products offered to the market. There is increasing market demand for Tier 2 eligible RECs with a 93 percent decrease of unpurchased Tier 2 eligible RECs from 2019 to 2021. Given the significant increase of in-state REC demand, the majority of RECs are sold each year. This increased market demand for renewable energy without the need for support from New York State ratepayer funding is a positive signal that the market is functioning sufficiently without additional support.
To assess current conditions and future needs of the baseline renewable energy fleet and the non-Tier 1 REC market, NYSERDA launched a Request for Information (RFI) on October 14, 2022. Through this RFI, NYSERDA is seeking information from interested stakeholders, including Tier 2 eligible renewable energy generators, Community Choice Aggregators, Load Serving Entities, voluntary market participants, and other interested parties. Information on the RFI is available on this webpage under the 2022 Tier 2 Request for Information heading.
First Competitive Tier 2 Solicitation (T2RFP21-1)
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 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
Second Competitive Tier 2 Solicitation (T2RFP21-2)
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.
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.
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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