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Connecticut

Connecticut

Incentives/Policies for Renewables & Efficiency

Printable Version
Renewables Portfolio Standard   

Last DSIRE Review: 07/19/2013
Program Overview:
State: Connecticut
Incentive Type: Renewables Portfolio Standard
Eligible Efficiency Technologies: CHP/Cogeneration, Custom/Others pending approval
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Municipal Solid Waste, CHP/Cogeneration, Low E Renewables, Anaerobic Digestion, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels
Applicable Sectors: Municipal Utility, Investor-Owned Utility, Retail Supplier
Standard:27% by 2020
Technology Minimum:Class I: 20% by 2020
Class I or Class II: 3% by 2010
Class III: 4% by 2010
Credit Trading:Yes (NEPOOL-GIS)
Web Site: http://www.ct.gov/dpuc/cwp/view.asp?a=3354&q=415186
Authority 1:
Date Enacted:
S.B. 1138
6/5/2013
Authority 2:
Date Enacted:
Date Effective:
Conn. Gen. Stat. § 16-245a et seq.
1998 (subsequently amended)
7/1/1998
Authority 3:
Conn. Gen. Stat. § 16-1
Summary:

Established in 1998 and subsequently revised several times, Connecticut's renewables portfolio standard (RPS) requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 23% of its retail load by using renewable energy by January 1, 2020. The RPS also requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 4% of its retail load by using combined heat and power (CHP) systems and energy efficiency by 2010.

Separate portfolio standards are required for energy resources classified as "Class I," "Class II," or "Class III." Class I resources include electricity derived from solar power, wind power, fuel cells (using renewable or non-renewable fuels), geothermal,  landfill methane gas, anaerobic digestion or other biogas derived from biological sources, ocean thermal power, wave or tidal power, low-emission advanced renewable energy conversion technologies, certain run-of-the-river hydropower facilities not exceeding 30 megawatts (MW) in capacity, and biomass facilities that use sustainable biomass fuel and meet certain emissions requirements. Electricity produced by end-user distributed generation (DG) systems using Class I resources also qualifies. Class II resources include trash-to-energy facilities, certain biomass facilities not included in Class I, and certain older run-of-the-river hydropower facilities.

Class III resources include: (1) customer-sited CHP systems, with a minimum operating efficiency of 50%, installed at commercial or industrial facilities in Connecticut on or after January 1, 2006; (2) electricity savings from conservation and load management programs that started on or after January 1, 2006, provided that on or after January 1, 2014, no such programs supported by ratepayers shall be eligible; and (3) systems that recover waste heat or pressure from commercial and industrial processes installed on or after April 1, 2007. The revenue from these credits must be divided between the customer and the state Conservation and Load Management Fund, depending on when the Class III systems are installed, whether the owner is residential or nonresidential, and whether the resources received state support.

Electric providers must meet the standard with at least 20% Class I resources and 3% Class I or II resources by January 1, 2020, and 4% Class III sources by 2010, and thereafter, according to the following schedule:

  • On and after 1/1/2006: 2.0% Class I + 3% Class I or II
  • On and after 1/1/2007: 3.5% Class I + 3% Class I or II + 1% Class III
  • On and after 1/1/2008: 5.0% Class I + 3% Class I or II + 2% Class III
  • On and after 1/1/2009: 6.0% Class I + 3% Class I or II + 3% Class III
  • On and after 1/1/2010: 7.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2011: 8.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2012: 9.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2013: 10.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2014: 11.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2015: 12.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2016: 14.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2017: 15.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2018: 17.0% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2019: 19.5% Class I + 3% Class I or II + 4% Class III
  • On and after 1/1/2020: 20.0% Class I + 3% Class I or II + 4% Class III

RPS requirements may be satisfied by purchasing electricity generated using Class I or Class II resources within the jurisdiction of the regional independent system operator (ISO New England). Renewable energy credit trades and purchases are tracked through the NEPOOL Generation Information System (NEPOOL-GIS). Renewables within the jurisdiction of New York, Pennsylvania, New Jersey, Maryland, and Delaware are also eligible, provided that the Connecticut Public Utilities Regulatory Authority (PURA)* determines these states have an RPS comparable to Connecticut's.

Electric providers that fail to comply with the RPS during an annual period must pay $0.055 per kWh to the PURA; these payments were historically will be to the Connecticut Clean Energy Fund (CCEF) for the development of Class I renewables. However, beginning in 2013, those payments will be used to refund ratepayers to offset the cost of LREC and ZREC contracts (see below) and other costs passed through to ratepayers.The PURA Renewable Energy web site provides additional documents related to its RPS.

Beginning in 2015, REC values for Class I biomass and landfill methane gas (not including anaerobic digestion and other biogas facilities) will gradually decrease per a schedule established by the Department of Energy and Environmental Protection (DEEP). Any facility that has entered into a power purchase agreement before June 5, 2013 will not be effected by the decreasing REC values.

Public Act 11-80 of 2011 requires the Clean Energy Finance and Investment Authority to develop a residential solar incentive program that will result in a minimum 30 megawatts of new residential solar by December 31, 2022, and will be funded by the state's existing public benefits fund. Energy produced from systems funded in this way help reduce utility RPS obligations.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from zero emission Class I renewable energy facilities (on the customer side of the meter) up to 1 MW. Zero emission Class I facilities include solar, wind, and hydro generators. Resulting zero emission renewable energy credits (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on contracts in year one, $16 million in year two, $24 million in year three, and $32 million in year four -- at which point the PURA will conduct a review. The maximum payment per ZREC authorized during the first year is $350. PURA may reduce this maximum per ZREC price yearly by 3-7%. The electric distribution companies submitted their six-year solicitation plan to PURA in December 2011. A Request for Proposal will be issued in the first half of 2012. See PURA docket 11-12-06 for additional details.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from low emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low emission facility" status, but could include facilities that generate using fuel cells, biomass, and landfill gas. Resulting low emission renewable energy credits (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on contracts in year one, and an additional $4 million in subsequent years. PURA will conduct a review in year three. The maximum payment per LREC authorized during year one is $200. As part of the six-year solicitation plan for ZRECs, the utilities companies also included their solicitation plan for LRECs. The RFP for ZRECs will also solicit LRECs.

Public Act 13-303 also allows the DEEP commissioner to issue RFPs and require electric companies to enter into contracts with renewable energy system owners. All RECs will be sold in the regional REC market to be used by suppliers or electric companies to meet RPS obligations. RFPs may be issued for (1)  Class I resources built on or after January 1, 2013 (limited to 4% of power distributed by electric companies); (2) Class I resources built before January 1, 2013 and hydropower over 30 MW built on or after January 1, 2003 in the New England REC market area (limited to 5% of the load distributed by electric companies); (3) Class I hydropower, landfill methane gas, and biomass (limited to 4% of the load distributed by electric companies).

 

* Previously known as the Connecticut Department of Public Utilities (DPUC).


 
Contact:
  Donna Devino
Connecticut Public Utilities Regulatory Authority
10 Franklin Square
New Britain, CT 06051
Phone: (860) 827-2873
E-Mail: donna.devino@po.state.ct.us
Web Site: http://www.ct.gov/pura
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.