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Combined Heat and Power Partnership

Community Based Renewable Energy Production Incentive (Pilot Program)

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeProduction Incentive
Incentive Administrator/Contact OfficeMaine Public Utilities Commission
Incentive Initiation Date2/13/2010
Incentive Expiration Date12/31/2015
Incentive Size and Funding SourceThe Community Based Renewable Energy Production Incentive Program is intended to encourage the development of locally owned, in-state renewable energy resources. Qualifying local owners have a choice between a 1.5 renewable energy certificate (REC) multiplier or a long-term contract with PUC with the size of the incentive varying based on the project size.

The value of a community-based generated REC is 150% of the amount of the electricity. If the program participant chooses this incentive, the multiplier must be accounted for when the RECs are used to satisfy Maine's Renewable Energy Portfolio Standard.

The PUC may require investor-owned utilities to enter into long-term contracts for energy, capacity resources or RECs produced by the community-based project (participation by cooperative utilities is voluntary). The contract term may not exceed 20 years. The PUC will conduct long-term contract solicitations for "large generators" (1.0 MW or greater). For these generators, the average price within each contract year may not exceed $0.10/kWh and it may not exceed the cost of the project plus a reasonable rate of return on investment. These small generators will contact their utility directly and present their community-based certification as well as the preferred contract terms. The utility will provide a standard contract (developed by the PUC, see Docket No. 2010-118 from March 2011) to the developer, and then submit a copy to the PUC.
Eligible RecipientQualifying local owners include individuals, state and local government entities, federally recognized Indian tribes, nonprofit corporations organized under laws of the state and business entities organized in the state with 51% local ownership. To be eligible for incentives, a generating facility must be 51% locally owned, use renewable energy resources (solar, wind, hydro, certain biomass, fuel cells or tidal) and be located in Maine.
Eligible FuelLandfill Gas; Woody Biomass; Biogas; Other
Eligible Project Size (MW)10 MW or less
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaCommunity-based renewable energy projects 100 kW or greater must provide documentation of support from the municipality or tribe (where applicable) in which the project will be located. All projects must be grid-connected and put into service after September 1, 2009. Community-based renewable energy projects petition the PUC for certification and subsequent participation in the pilot program.
Other Incentive DetailsLegislation mandates that up to 50 MW of generating capacity (DC) will be permitted under the program, and individual participants may not exceed 10 MW. Of the 50 MW cap, 10 MW must be reserved specifically for small program participants (with generating capacity less than 100 kW) or for participants located in a service territory of a cooperative transmission and distribution utility.
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