Massachusetts is leading the way in integrating clean energy with the Clean Peak Energy Portfolio Standard (CPS). This program is designed to drive the use of clean energy during peak electricity hours, helping the state accelerate the adoption of clean energy technologies, support environmental sustainability goals, and reduce reliance on nonrenewable generation during Seasonal Peak Periods. By incentivizing energy storage and renewables when the grid needs them most, the program aims to enhance grid reliability and reduce emissions, making it a vital part of Massachusetts’ clean energy strategy.
What is Clean Peak Standard?
At its core, the Clean Peak Standard (CPS) is a policy that encourages clean energy use during peak electricity demand. By displacing nonrenewable energy sources, it helps reduce reliance on fossil fuels and brings Massachusetts closer to its environmental goals. Under the program, utilities are required to procure Clean Peak Energy Certificates (CPECs) each year to meet compliance targets. These are earned by Clean Peak Resources, such as renewable energy sources, energy storage systems, and demand response resources, that deliver energy during designated peak periods. These resources step in during peak demand hours to keep the grid stable and lower emissions.
Key Program Details
CPS will operate in Massachusetts through 2050, providing long-term opportunities for developers and asset owners. Here is a brief overview of the program:
Eligibility Requirements
- Clean Peak Resources: Must use one or more of the energy resources or technologies listed in the program document, such as Qualified RPS Resources, Qualified Energy Storage Systems, and Demand Response Resources.
- Qualified RPS Resources: Renewable energy generating sources with a Commercial Operation Date on or after January 1, 2019, or those with a Qualified Energy Storage System.
- Qualified Energy Storage Systems: Storage resources must primarily store and discharge renewable energy. Batteries must either be charged by on-site solar or during designated solar charging windows.
- Demand Response Resources: Must demonstrate measurable, verifiable changes in electricity usage from normal consumption patterns.
- ETB Hardware Compatibility: All AC-coupled equipment is eligible; DC-coupled hardware eligibility is pending further rulings on DC metering.
Enrollment Process
Performance Calculations & Seasonal Multipliers
The number of CPECs a project generates is based on its metered average Megawatt (MW) performance of a Clean Peak Resource during Seasonal Peak Periods. The formula incorporates seasonal and peak demand multipliers:
Multipliers include Seasonal Multiplier, Actual Monthly System Peak Multiplier, Resilience Multiplier, Existing Resource Multiplier, Contracted Resource Multiplier, SMART ES Resource Multiplier, and Distribution Circuit Multiplier.
Seasonal & Peak Hour Multipliers
Example Calculations:
- 4 MWh discharged during summer peak period = 16 CPECs (4 MWh × 4 seasonal multiplier)
- 1 MWh discharged during summer peak + top system hour = 25 CPECs (1 MWh × 25 system peak multiplier)
Incentive Levels & Monetizing CPECs
Retail Energy Providers (Utilities must procure Alternative Compliance Payment (ACP) must procure CPECs or pay an Alternative Compliance Payment (ACP). Retail Electricity Suppliers can meet their obligations by either paying ACPs to the Massachusetts Clean Energy Center (MassCEC) or procuring CPECs from the open market:
ACP Rate:
- $45 per required Alternative Compliance Credit (ACC) for Compliance Year 2020. Each ACC is equivalent to one Clean Peak Energy Certificate (CPEC), representing 1 MWh of clean energy generated during peak periods.
- Starting Compliance Year 2026, an emergency ruling increases the ACP rate to $65. This sets the maximum price at which CPECs can be traded.
- Market Pricing: CPECs often trade 2-8% below the ACP rate
- Banked Compliance: CPECs generated in one Compliance Year can be used for compliance for the next two years
Co-Participation with Other Programs
One of the most valuable aspects of CPS is its compatibility with other incentive programs, allowing developers to stack revenue streams. Clean Peak Resources can participate in:
- ISO-NE Demand Response Programs
- Solar Massachusetts Renewable Target (SMART) Program
- Other Massachusetts Clean Energy Initiatives
Simplify Participation in Clean Peak Standard with Energy Toolbase
Massachusetts’ Clean Peak Standard presents an excellent opportunity for energy storage developers and asset owners to capitalize on peak-period incentives while supporting a cleaner grid. With recent policy updates and fixed CPEC pricing, participation in CPS is more predictable and financially viable than ever before.
Energy Toolbase makes it easy to accurately model, enroll, and manage Clean Peak Standard projects. On the ETB Developer platform, you can model CPS incentives, optimize energy storage strategies, and project CPEC revenues. ETB Controller with Acumen AI™ takes it a step further, automating energy dispatch during peak periods, ensuring you generate maximum CPECs. ETB Monitor offers real-time performance tracking so you stay on top of compliance and optimize program participation.
Together, these tools streamline CPS participation, allowing your projects to see greater savings and revenue potential. Ready to learn more about how we support Clean Peak Standard? Schedule a call with our team!
Join us for our upcoming webinar on April 2, 2025 to learn more about these two newly released grid services programs on ETB Developer, ConnectedSolutions and Clean Peak Standard (CPS). We’ll guide you through how these programs unlock new revenue opportunities for energy storage projects in the Northeast while maximizing savings and simplifying participation. Sign up for the free webinar here.
