Renewable portfolio standard: An Analysis of design and implementation issues

Tigran Parvanyan

TJ807.9.U5 P37 2005


The Renewable Portfolio Standard (RPS) is a policy tool that requires a certain percentage of renewable energy to be included in the portfolio of electricity resources serving a state or a country. The main purpose of an RPS is to foster the development of renewable energy market, increase the energy security by reducing the dependence on the imported energy sources (oil, etc.), and, to provide environmental benefits from using more renewable energy. There are different approaches to the design and implementation of RPS in different states in U.S. and the degree of achieving a success of the policy differs also, depending on the design features.

In 2004 New York has enacted an RPS that starts in 2006 and requires provision of at least 25% of electric energy from renewable energy sources by the year 2013. This study analyzes the design and implementation approaches of RPS in Arizona, Hawaii, Maine, Texas, and Wisconsin in order to determine the key design features that lead to a successful implementation of the policy in order to develop recommendations for RPS in New York and in other states that may implement an RPS. In order to evaluate the degree of success in the case-states an RPS Metric System was designed. It evaluates the target setting of the policy, the achievements of the policy and the growth of renewable energy as a result of the RPS implementation.

As a result of the conducted study a set of recommendations was designed for consideration by New York state during the scheduled review of RPS implementation in 2009 as well as for other states during the design and implementation of the policy.