Charlottesville, Virginia (Platts)--18Mar2013/647 pm EDT/2247 GMT

Connecticut, Massachusetts and Vermont are working together to fast-track a joint solicitation aimed at creating a significant buyer's market for renewable energy and driving down its costs in New England, Connecticut officials said Monday during a news conference.

Connecticut also plans to increase its state's renewable portfolio standard and take the controversial step of letting large hydroelectric projects participate.

"The key here is that the demand for renewable is going to rise rapidly," said Dan Esty, commissioner of the state's Department of Energy and Environmental Protection.

Connecticut envisions two solicitations for an amount of renewable energy yet to be announced. The state gave out no firm dates for their release, but hopes to move forward with the first one soon so that projects can take advantage of the federal production tax credit, which expires at the end of 2013.

Massachusetts policymakers also are trying to move forward on a renewable solicitation, with a tentative April 1 release. Connecticut hopes that Massachusetts will merge its solicitation into the tri-state request for proposals, Esty said.

Connecticut invited other New England states to participate in the joint solicitation, but only Vermont and Massachusetts said yes for the first round. Rhode Island and New Hampshire may participate in the second solicitation, Esty said, adding that it is not likely Maine will join in. Maine Governor Paul LePage, a Republican, has criticized the cost of RPS programs.

Connecticut policymakers also are seeking legislative approval of an increase in the state's RPS requirement from 20% by 2020 to 25% by 2025. The state would run a competitive bid process and seek long-term contracts to meet part of the requirement -- 7.5% by 2025. This "contracted tier" is designed to bring down the overall ratepayer cost of the RPS. Hydroelectric projects that are over 30 MW will be allowed to bid to supply the contracted tier.

--Lisa Wood, newsdesk@platts.com
--Edited by Jason Lindquist, jason_lindquist@platts.com

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