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Energy to Sell - States with Renewable Portfolio Standards

January 18, 2010 on 12:53 am | In Investment Opportunities, Market Trends, New Developments, Trends, Uncategorized, Utilities, all, green |

States with Renewable Portfolio Standards

Edited by Jodi Summers

Here is a nifty map and chart from the U.S. Department of Energy showing states with renewable portfolio standards - a state policy that requires electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date.

California is stellar with the objective of 33% renewable energy by 2030, but not nearly as aggressive as Maine, which is shooting for 40% renewable by 2017.

Currently there are 24 states plus the District of Columbia that have RPS policies in place. Together these states account for more than half of the electricity sales in the United States. Five other states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have nonbinding goals for adoption of renewable energy instead of an RPS.

The chart below gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm?prin

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An RPS creates market demand for renewable and clean energy supplies. Currently, states with RPS requirements mandate that between 4 and 30 percent of electricity be generated from renewable sources by a specified date. While RPS requirements differ across states, there are generally three ways that electricity suppliers can comply with the RPS:

* Owning a renewable energy facility and its output generation.
* Purchasing Renewable Energy Certificates (RECs).2
* Purchasing electricity from a renewable facility inclusive of all renewable attributes (sometimes called “bundled renewable electricity”).

Comment by EPA.gov — January 20, 2010 #
When Texas produced its first Renewable Portfolio Standard as part of the state’s electricity industry restructuring legislation in 1999 (Senate Bill 7), it mandated the construction of certain amounts of renewable energy and prompted the renewable energy industry to rapidly accelerate its production on Texas sites. Qualifying renewable energy sources include solar, wind, geothermal, hydroelectric, tidal energy, and biomass, including landfill gas. Also eligible are renewable energy sources on the customer side of the meter that offset electricity demand, such as the installation of photovoltaic panels and solar water heating. The Texas Public Utility Commission implemented the program.

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