by Jessica Lakritz, Clean Peak Energy Specialist, Knollwood Energy of MA

Massachusetts has introduced a new way to quantify and monetize energy savings by renewable systems, the Clean Peak Energy Standard.  Clean Peak Energy Certificates can be earned by any system that “generates, dispatches or discharges electricity to the electric distribution system… or alternatively, reduces load on said system.”  In layman’s terms, this means that any system that creates, stores, and releases energy (and meets the specifications detailed below) is eligible for Clean Peak Energy Certificates.  CPEC’s are calculated using megawatts of energy saved and created per Seasonal and hourly periods with additional multipliers.

The Massachusetts Department of Energy has asserted that 1.5% of sales by energy providers must be met with Clean Peak Energy Certificates in 2020, with that percentage increasing steadily through 2050.  If your system meets the qualifications, we recommend setting up the metering system as soon as possible so you can begin making money.    

We at Knollwood Energy are excited to be a part of this new market!  As one of the largest aggregators of renewable credits in the country, we are able to help you make money as quickly and efficiently as possible.  If you have any questions or think your system qualifies for Clean Peak Energy Certificates, please reach out to Jessica Lakritz at jessica@knollwoodenergy.com.

Which Systems are Eligible for Clean Peak Energy Certificates?

Eligible systems are made up of qualified Renewable Portfolio Standard (RPS) Resources that are paired with qualified Energy Storage Systems.

Qualified Renewable Portfolio Standard Resources are:

• RPS Class 1 Renewable Generation Units with a Commercial Operation Date on or after January 1, 2019 and have received a Statement of Qualification and meet all other requirements
• RPS Class I Renewable Generation Units and RPS Class II Renewable Generation Units with a Commercial Operation Date before 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 additional qualifiers which can be found in 225 CMR 21.05(1)(a)1: https://www.mass.gov/doc/clean-peak-energy-standard-final-regulation/download#page=7

Qualified Energy Storage Systems:

These systems must operate primarily to store and discharge renewable energy as demonstrated by one or more of the following:

• 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 seventy-five percent (75%) of the nameplate capacity of the energy storage; (225 CMR 21.05(1)(a)2.)
• 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; (225 CMR 21.05(1)(a)2.)
• Systems must be charged within periods of typically high renewable energy production as a percent of the grid generation mix, defined below; 
  • 1. Spring: twelve (12) a.m. until six (6) a.m. and eight (8) a.m. until four (4) p.m. 
  • 2. Summer: twelve (12) a.m. until six (6) a.m. and seven (7) a.m. until two (2) p.m. 8 
  • 3. Fall: twelve (12) a.m. until six (6) a.m. and nine (9) a.m. until three (3) p.m. 
  • 4. Winter: twelve (12) a.m. until six (6) a.m. and ten (10 a.m. until three (3) p.m. 

• 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. (225 CMR 21.05(1)(a)2.)

Demand Response Resources

These resources must show measurable and verifiable differences in electric usage from normal electricity consumption patterns.  Further detail on these resources will be published by the Department of Energy.

• A facility that generates electricity, including qualified RPS Resources, will not be considered a Demand Response Resource

Statement of Qualification Application

In order to obtain Statement of Qualification, the Owner or Operator of the Clean Peak Resource, or an Authorized Agent for an Aggregation, must submit a completed application to the Massachusetts Department of Energy.*

*Knollwood Energy will take care of all of the paperwork required to get your system registered in MassCEC and Nepool GIS, and approved by MA DOER, for participation in the CPEC program. The only thing a customer has to do is (electronically) sign our contract.

How are Certificates Earned?

Unlike SREC’s, which are earned based on the number of kilowatt hours a solar energy system creates, CPEC’s are a calculation of how much energy your system saves in comparison with normal energy consumption during typical “peak” energy use hours.  Thus, Certificates are only produced during the business days and hours that correspond to Seasonal and Hourly Peak electricity demand.  These Peak periods are outlined as followed:

• Spring: March first (1^st) through May fourteenth (14^th)
  • From five (5) p.m. until nine (9) p.m.
• Summer: May fifteenth (15^th) through September fourteenth (14^th)
  • From three (3) p.m. until seven (7) p.m.
• Fall: September fifteenth (15^th) through November thirtieth (30^th)
  • From four (4) p.m. until eight (8) p.m.
• Winter: December first (1^st) through February twenty-eighth (28^th)
  • From four (4) p.m. until eight (8) p.m.
• *Adjustments will be made for leap years

How are Certificates Calculated?

The number of CPEC’s a system earns will be determined by multiple factors, including a baseline of energy usage, the number of megawatt hours created during the Seasonal Peak Periods, the amount of electricity saved as a result of energy storage during Hourly Peak Periods, and other standardized multipliers.

The official formula is as follows:

“Clean Peak Energy Certificates… 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 [calculated through metering], 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” (225 CMR 21.05(5), pg 9)

Metering

Every 15 minutes, reports on the Megawatt performance of your Clean Peak Resource

• Reports on energy creation and usage are measured in compliance with standards and protocols established by a third-party Program Administrator
  • Exceptions to the 15 minute rule may be granted by the Department of Energy on a case-by-case basis
• Clean Peak Resources must submit metered data for all hours of the previous month
  • The electrical energy output of a Clean Peak Resource will be verified in order to calculate the Clean Peak Energy Certificates earned

Multipliers

*For a full list of multipliers, please see 225 CMR 21.05(6)

• Seasonal Multiplier: established constants that reflect the levels of emissions and magnitude of peak demands in season
  • Spring: one (1)
  • Summer: four (4)
  • Fall: one (1)
  • Winter: four (4)
• Actual Monthly System Peak Multiplier: modifies Clean Peak Energy Certificates generated during the Hour of Actual Monthly System Peak
  • Twenty-five (25)
• Existing Resource Multiplier: applies to CPEC’s generated by an Existing Resource
  • One-tenth (0.1)

KNOLLWOOD ENERGY OF MA 

We are very excited to bring our energy credit aggregation expertise to this new MA market.  Knollwood Energy is a family run business and one of the largest aggregators of renewable energy credits in the country. We have been monetizing credits since 2006. We work in all states that have SREC or REC programs.  Knollwood Energy will take care of all of the paperwork required to get your system registered in MassCEC and Nepool GIS, and approved by MA DOER, for participation in the CPEC program. The only thing a customer has to do is (electronically) sign our contract.  We do not charge our buyers a fee which means our customers typically receive the best prices for their credits.

Please contact Jessica Lakritz at jessica@knollwoodenergy.com with any questions regarding the CPEC program.

Works Cited

Official Clean Peak Energy Standard Guide (225 CMR 21.00)

Additional Resources

Clean Peak Energy Standard Updates – Massachusetts Department of Energy Website

Clean Energy Standard (General) – Massachusetts Department of Energy Website

Clean Energy Standard (General) Guide (Amend 310 CMR 7.75)