From the 83E Solicitation Stakeholder Comments: More surprises for existing and distribution-connected resources moving forward
As we covered in detail in our prior blog Post: Massachusetts Releases Draft 83E RFP on May 5, the Department of Energy Resources (DOER) issued a draft Request for Proposals (RFP) seeking Clean Peak Energy Certificates (CPECs) from qualified energy storage resources under Section 83E.
On May 16, 2025, the Massachusetts Department of Public Utilities (DPU) requested comment on the draft RFP to procure 1,500 MW of mid-duration storage under Section 83E. Stakeholder comments and agency responses filed on May 30 and June 6 respectively in the solicitation proceeding (Docket 25-59) reveal key uncertainties with significant implications project eligibility, solicitation timing, and future access to long-term contracts for distribution-connected resources. With stakeholder comments and agency replies now filed in DPU Docket 25-59, several key assumptions in our June Market Outlook Briefing have been reinforced, while others may need rethinking.
Key Developments
Push to Align Bid Due Dates with ISO-NE Study Fees: BlueWave proposed delaying bid submissions until October 10, when ISO-NE’s Transitional Cluster Study (TCS) deposits are due. Their reasoning is that giving developers time to assess study costs could prevent speculative bids and reduce later attrition. The draft RFP currently sets a bid deadline for September 10, which is a full month before study fee information becomes available. While DOER and the EDCs have not indicated plans to change the date, this proposal may gain traction with others who are concerned about late-stage drop-offs. In the June briefing, like BlueWave, our team also highlighted the high attrition risk associated with un-hedgeable interconnection costs and a compressed bid window.
Distribution-Connected Storage: On Deck for Future Rounds: In one of their most notable disclosures, the EDCs and DOER explicitly affirmed their intent for distribution-connected resources to be eligible in future Section 83E solicitations. For the present procurement round, they said there wasn’t time to resolve logistical and legal complexities. Our team interprets this as a significant statement of intent, especially given past ambiguity about whether these smaller-scale resources would be included at all under the 83E framework. For developers and aggregators with pipeline projects in up to 40 MW, this should be a signal to more carefully consider the possibility of bidding into for future rounds.
Financing Requirements Could Limit Existing Projects: The EDCs and DOER reiterated that projects that have already secured financing may not be eligible to participate, based on the statutory requirement that long-term contracts must foster new development of Energy Storage. The RFP explicitly says that: “The bidder should specify how a Long-Term Contract for Environmental Attributes resulting from this RFP process would either permit it to finance the proposed project that would otherwise not be financeable or assist it in obtaining financing for its project.” Our team notes that this is potentially a significant constraint for existing energy storage resources. The agencies did acknowledge that refinancing might count, but they offered little clarity on how the Evaluation Team will determine whether a contract meaningfully supports “refinancing” versus simply subsidizing an already-funded asset. This leaves a gray area for retrofit and expansion projects trying to assess their own eligibility. Importantly, consideration of whether a long-term contract enables financing or not could complicate the eligibility of projects that have not commenced operation or construction, but may have secured financing. Until this uncertainty is resolved, it could also slow progress towards project financing, if developers believe that securing financing could compromise their eligibility for this and future solicitations.The net effect: existing resources might technically be eligible but practically excluded unless they can document a compelling need for contract-based support.
We’re Here to Help
Recent developments around the 83E solicitation underscore the complexity, and opportunity for developers, load-serving entities, and policymakers alike. Through CPMO’s market intelligence, we distill evolving policy signals, synthesize market expectations, and offer forward-looking modeling to help subscribers navigate and respond to these shifts. In our upcoming July briefing, we’ll take a deeper dive into the 83E solicitation’s implications, including what stakeholders should expect in the final RFP and how to prepare for future rounds. If your team is evaluating Clean Peak exposure or considering bids in this or upcoming solicitations, we invite you to reach out to the CPMO team to learn how our insights can support your strategy and decision-making.
