Meta, Constellation and the Clinton Clean Energy Center
20-Year PPA Replaces ZEC
๐ง๐ต๐ฒ ๐ฑ๐ฒ๐ฎ๐น ๐ฝ๐๐๐ ๐ฒ๐ ๐ฝ๐น๐ถ๐ฐ๐ถ๐ ๐๐ฎ๐น๐๐ฒ - ๐ฝ๐ฒ๐ฟ๐ต๐ฎ๐ฝ๐ $๐ญ.๐ฑ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป - ๐ผ๐ป ๐๐ต๐ฒ ๐ฎ๐ฐ/๐ณ ๐น๐ผ๐-๐ฐ๐ฎ๐ฟ๐ฏ๐ผ๐ป ๐ฒ๐ป๐๐ถ๐ฟ๐ผ๐ป๐บ๐ฒ๐ป๐๐ฎ๐น ๐ฎ๐๐๐ฟ๐ถ๐ฏ๐๐๐ฒ๐ of this power and effectively replaces the Illinois Zero Emission Credit (ZEC) program set to expire mid-2027. In effect, the PPA is a privatization of the ZEC.
$๐ญ.๐ฑ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป? The ZEC program compensates plants for their carbon-free electricity generation and effectively puts a price on that attribute. For the year June 1 2024 to May 31, 2025, ๐ญ๐๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ๐ ๐๐ฒ๐ฟ๐ฒ $๐ต.๐ฏ๐ด/๐ ๐ช๐ต according to "Zero Emission Standard Final Payment Calculation Notice" published by the Illinois Power Agency (IPA). For 20 years at ~85% capacity factor that would be ~$1.5 billion.
The deal is similar to Microsoftโs 20 year PPA the launch the Crane Clean Energy Center and restart Three Mile Island Unit 1 (TMI1). In neither case is a data center expected to be co-located on the site.
In both the TMI1 and Clinton cases ๐ฒ๐ป๐๐ถ๐๐ถ๐ฒ๐ (๐ ๐๐ง๐ ๐ฎ๐ป๐ฑ ๐ ๐ถ๐ฐ๐ฟ๐ผ๐๐ผ๐ณ๐) ๐๐ต๐ฎ๐ ๐๐ฎ๐น๐๐ฒ ๐๐ต๐ฒ ๐น๐ผ๐ ๐ฐ๐ฎ๐ฟ๐ฏ๐ผ๐ป ๐ฎ๐ฐ/๐ณ ๐ฝ๐ผ๐๐ฒ๐ฟ ๐บ๐ผ๐๐ - ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐ผ๐ณ ๐๐ต๐ฒ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ๐ ๐ผ๐ณ ๐๐ต๐ฒ๐ถ๐ฟ ๐ฑ๐ฎ๐๐ฎ ๐ฐ๐ฒ๐ป๐๐ฒ๐ฟ ๐ด๐ฟ๐ผ๐๐๐ต ๐ฎ๐ป๐ฑ ๐๐๐๐๐ฎ๐ถ๐ป๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ ๐ด๐ผ๐ฎ๐น๐ - ๐ฎ๐ฟ๐ฒ ๐๐ถ๐น๐น๐ถ๐ป๐ด ๐๐ผ ๐ฝ๐ฎ๐ for that attribute at a sufficiently high price to restart or extend the life of a plant that might otherwise close.
Not a bad market outcome.
