Current through Register 1531, September 27, 2024
(1)
Eligibility
Criteria. A Clean Peak Resource may qualify for a Statement of
Qualification subject to the limitations in 225 CMR 21.05. The Department shall
publish a Guideline on Clean Peak Resource Eligibility that explains the
parameters of eligibility requirements.
(a)
Energy Resources and Technologies. The Clean Peak Resource shall use one or
more of the energy resources or technologies listed in 225 CMR 21.05(1)(a) 1
through 4. The Clean Peak Resource shall be interconnected with or offset load
otherwise served by the Distribution System, or shall be interconnected with
the Transmission System in the Commonwealth of Massachusetts. Clean Peak
Resources must demonstrate that they generate, dispatch, or discharge
electricity to the electric distribution system in Massachusetts. Resources
interconnected within the service territory of a municipal lighting plant shall
be ineligible to generate Clean Peak Energy Credits under 225 CMR 21.00 as
municipal lighting plants are exempt from the requirements of the Clean Peak
Standard pursuant to M.G,L, c. 25A, § 17(d).
1.
Qualified RPS
Resources.
a. RPS Class I
Renewable Generation Units with a Commercial Operation Date on or after January
1, 2019 that have received a Statement of Qualification and meet all other
applicable requirements.
b. RPS
Class I Renewable Generation Units and RPS Class II Renewable Generation Units
with a Commercial Operation Date prior to January 1, 2019, that are co-located
with a Qualified Energy Storage System that has a Commercial Operation Date on
or after January 1, 2019, subject to the following:
i.
Minimum Nominal Rated
Power. The nominal rated power capacity of a Qualified Energy
Storage System paired with a RPS Class I Renewable Generation Unit or RPS Class
II Renewable Generation Unit must be at least 25% of the nameplate power rating
of the RPS Class I Renewable Generation Unit or RPS Class II Renewable
Generation Unit.
Special Provisions for Derated Qualified Energy Storage Systems
paired with RPS Class I Renewable Generation Units and RPS Class II Renewable
Generation Units. A Qualified Energy Storage System's nominal rated power
capacity may be derated to meet the four hour minimum nominal useful energy
requirements in 225 CMR 21.05(1)(a)1.b.i. provided its derated power capacity
is still at least 25% of the nameplate power rating of the RPS Class I
Renewable Generation Unit or RPS Class II Renewable Generation Unit with which
it is paired.
ii.
Minimum Nominal Useful Energy. The nominal useful
energy capacity of the Energy Storage System must be at least four hours at the
nominal rated power.
iii.
Co-location. The RPS Class I or Class II Renewable
Generation Unit and the Qualified Energy Storage System must be located on the
same or adjacent parcels within the same Distribution Company's service
territory, and must be interconnected to the same common collector located on
the same parcel(s) on which the RPS Class I or Class II Renewable Generation
Unit and Qualified Energy Storage System facilities are located.
2.
Qualified
Energy Storage Systems: A Qualified Energy Storage System must
operate primarily to store and discharge renewable energy as demonstrated by
one or more of the following factors:
a.
Co-location with a Qualified RPS Resource as defined in 225 CMR 21.02 where the
Qualified RPS Resource must have a nameplate capacity of at least 75% of the
nameplate capacity of the energy storage;
b. Contractual pairing with a Qualified RPS
Resource that demonstrates to the Department's satisfaction that the Qualified
Energy Storage System operates primarily to store and discharge renewable
energy;
c. Charging coincident with
periods of typically high renewable energy production as a percent of the grid
generation mix as defined below;
1. Spring:
12:00 A.M. until 6:00 A.M. and 8:00 A.M. until 4:00 P.M.
2. Summer: 12:00 A.M. until 6:00 A.M. and
7:00 A.M. until 2:00 P.M.
3. Fall:
12:00 A.M. until 6:00 A.M. and 9:00 A.M. until 3:00 P.M.
4. Winter: 12:00 A.M. until 6:00 A.M. and
10:00 A.M. until 3:00 P.M.
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Energy Storage Charging
Windows
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Clean Peak Season
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Wind-based Charging Hours
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Solar-based Charging Hours
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Spring
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12:00 A.M. - 6:00 AM
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8:00 A.M. - 4:00 P.M.
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Summer
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12:00 A.M. - 6:00 AM
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7:00 A.M. - 2:00 P.M.
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Fall
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12:00 A.M. - 6:00 AM
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9:00 A.M. - 3:00 P.M.
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Winter
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12:00 A.M. - 6:00 AM
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10:00 A.M. - 3:00 P.M.
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d. Inclusion of an operational schedule in
the Qualified Energy Storage System's Interconnection Service Agreement
demonstrating that the Qualified Energy Storage System serves to resolve load
flow or power quality concerns otherwise associated with intermittent renewable
energy resources.
3.
Demand Response Resources: Demand Response Resources
must demonstrate that changes to electric usage from their normal consumption
patterns are measurable and verifiable. The Department shall publish a
Guideline on Demand Response Resources to explain the parameters of Demand
Response Resources in the Clean Peak Standard. A facility that generates
electricity, including a Qualified RPS Resource, shall not be considered a
Demand Response Resource.
(2)
Metering. A
Clean Peak Resource shall meter and report 15-minute interval performance in
compliance with standards and protocols as established by a third-party Program
Administrator designated by the Department. The Department may grant an
exception to the 15-minute interval and designate a shorter or longer interval
on a case-by-case basis. The Program Administrator shall be the designated
independent third-party meter reader, as defined in Rule 2.5(j) of the NEPOOL
GIS Operating Rules, or any successor rule. All standards and metering
protocols shall be subject to review and approval by the Department. A Clean
Peak Resource shall submit metered data to the Program Administrator for all
hours of the previous month. Subject to review and approval by the Department,
the Program Administrator may assess Clean Peak Resources a fee associated with
the administration of the CPS.
The electrical energy output or performance of a Clean Peak
Resource shall be verified by the Program Administrator for the purpose of
calculating the number of Clean Peak Energy Certificates a qualified resource
produced in the previous month. The Program Administrator shall report the
number of Clean Peak Energy Certificates each qualified resource is due to
receive to NEPOOL GIS for the purpose of minting Clean Peak Energy
Certificates.
(3)
Clean Peak Seasons.
(a) The four Clean Peak Seasons are
established as:
1. Spring: March
1st through May
14th;
2.
Summer: May 15th through September
14th;
3.
Fall: September 15th through November
30th;
4.
Winter: December 1st through February
28th; and as adjusted by leap years.
(4)
Seasonal
Peak Periods. The Seasonal Peak Periods establish the time of day
in which a qualified resource produces Clean Peak Energy Certificates.
(a) The Seasonal Peak Periods are established
as the periods of all Business Days in each Clean Peak Season that historically
coincide with Massachusetts' peak electricity demand:
1. Spring: from 5:00 P.M. until 9:00
P.M.
2. Summer: from 3:00 P.M.
until 7:00 P.M.
3. Fall: from 4:00
P.M. until 8:00 P.M.
4. Winter:
from 4:00 P.M. until 8:00 P.M.
(5)
Clean Peak Energy Certificate
Generation. Clean Peak Energy Certificates generated by a Clean
Peak Resource shall be equal to the sum of the metered average MW performance
of a Clean Peak Resource for each hour during a Seasonal Peak Period,
multiplied by the Seasonal Multiplier, and any other applicable multipliers as
described in
225
CMR 21.05(6) (c) through
(g), plus the metered average MW performance
during the Hour of Actual Monthly System Peak Demand, multiplied by the
Seasonal Multiplier, the Actual Monthly System Peak Multiplier, and any other
applicable multipliers as described in
225
CMR 21.05(6)(c) through
(g).
(6)
Clean Peak Energy Certificate
Multipliers. The Clean Peak Energy Certificate Multipliers shall
modify the number of Clean Peak Energy Certificates that a Clean Peak Resource
generates as follows:
(a)
Seasonal
Multiplier. Seasonal multipliers are established for each Clean
Peak Season to reflect the level of emissions and magnitude of peak demands in
a season. Seasonal Multipliers shall be:
a.
Spring: 1
b. Summer: 4
c. Fall: 1
d. Winter: 4
(b)
Actual Monthly System Peak
Multiplier. The Actual Monthly System Peak Multiplier shall modify
the number of Clean Peak Energy Certificates generated during the Hour of
Actual Monthly System Peak. The multiplier shall be 25.
(c)
Resilience
Multiplier. The Resilience Multiplier modifies the number of Clean
Peak Energy Certificates generated by a Clean Peak Resource that is also a
Resilient Facility and can provide electric power to a load during external
outage conditions. Clean Peak Resources that can demonstrate the added ability
to provide electricity to load during an external outage will receive a
Resilience Multiplier on all eligible output occurring during Seasonal Peak
Periods. The multiplier shall be 1.5.
(d)
Existing Resource
Multiplier. The Existing Resource Multiplier modifies the number
of Clean Peak Energy Certificates generated by an Existing Resource. The
multiplier shall be 0.1.
(e)
Contracted Resource Multiplier. The Contracted
Resource Multiplier modifies the number of Clean Peak Energy Certificates
generated by a Contracted Resource. The multiplier shall be 0.01.
(f)
SMART ES Resource
Multiplier. The SMART ES Resource Multiplier modifies the number
of Clean Peak Energy Certificates generated by a SMART ES Resource. The
multiplier shall be 0.3.
(g)
Distribution Circuit Multiplier. The Department may
establish a Distribution Circuit Multiplier that modifies the number of Clean
Peak Energy Certificates generated by a Clean Peak Resource based on the
locational value of the unique load profile and particular needs of each
distribution circuit, as defined by the Department, in consultation with the
Distribution Companies. Clean Peak Resources which are owned by a Distribution
Company are not eligible for a Distribution Circuit Multiplier. The Department
may consider Distribution Circuit Multipliers greater than or less than one.
The Department, in coordination with the Distribution Companies, shall
determine whether sufficient data is available to enable effective
implementation of a Distribution Circuit Multiplier no later than December 31,
2022. If the Department determines that a Distribution Circuit Multiplier shall
be established, the Department shall publish a Guideline on the Distribution
Circuit Multiplier that provides the multiplier amount(s) and explains the
parameters of the applicability of the Distribution Circuit
Multiplier.
(h)
Near-term Resource Multiplier. The Near-term Resource
Multiplier modifies the number of Clean Peak Energy Certificates generated by a
Qualified Energy Storage System that is not co-located with a Qualified RPS
Resource or a Demand Response Resource and is interconnected to the
Distribution System. The Qualified Energy Storage System must not have received
a Statement of Qualification on or before January 1, 2025, and must have a
Commercial Operation Date before January 1, 2027. No Qualified Energy Storage
System shall receive both the Distribution Circuit Multiplier and the Near-term
Resource Multiplier. The Department shall set an initial eligibility cap for
the Near-term Resource Multiplier of 50 MW of cumulative Qualified Energy
Storage System capacity. After notice and opportunity for public comment, the
Department may increase this cap in the future. No individual or affiliated
Owner, Operator, or Authorized Agent may qualify for greater than 50% of the
capacity designated by the Department. The multiplier shall be two for years
one through ten from the Qualified Energy Storage System's effective date on
its Statement of Qualification. The Department may publish a guideline that
explains the parameters of the applicability of the Near-term Resource
Multiplier.
(i)
Review. Beginning in 2024 and not less frequently than
every four years thereafter, the Department shall conduct a review of the Clean
Peak Energy Certificate Multipliers and, following stakeholder review and
input, may modify the multipliers.
(7)
Special Provision for Clean
Peak Energy Certificate Generation for Energy Reserves.
(a) The Department may establish a mechanism
by which Clean Peak Energy Certificates may be generated by provision of energy
reserves, subject to applicable requirements including, but not limited to,
such provision of energy reserves being directly measurable and verifiable in
accordance with
225
CMR 21.05(2). The Department
shall determine whether such a mechanism can be implemented no later than
December 31, 2020. If the Department determines that such a mechanism shall be
established, the Department shall publish a Guideline on Energy
Reserves that explains the mechanism and its applicability.
(8)
Clean Peak
Certificate Procurement.
(a) Each
Distribution Company shall competitively procure Clean Peak Energy Certificates
pursuant to M.G.L. c. 25A, § 17(c). Clean Peak Certificate procurements
shall be designed to achieve an initial target of 30% of the total market
obligation of Retail Electricity Suppliers in a given Compliance Year. The
Department shall establish a staggered procurement schedule for the issuance
for requests for proposals for Clean Peak Certificates.
(b) The Department may adjust the procurement
target in response to the Market Supply in any Compliance Year. Where Market
Supply is below 50%, the Department may increase the subsequent year's
procurement target by up to 5%. Where Market Supply is greater than 70%, the
Department may decrease the subsequent procurement target by up to 15%. The
Department may determine that additional procurements are not required based on
Market Supply conditions.
(c) A
request for proposals to conduct the competitive procurement shall be developed
by the Distribution Companies, in consultation with and subject to review and
approval by the Department. Such request for proposals may include the
following components:
(d) Any
contracts resulting from a competitive procurement under this section shall be
subject to review and approval by the Department of Public Utilities.
(e) The Department may establish a Guideline
on Clean Peak Certificate Procurements that explains the parameters and
provides additional detail to the procurement process.
