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Part 3: Driving renewable energy markets: the conventional approach

Abstract

State Renewable Portfolio Standards (RPSs) have been important drivers of renewable energy markets. This third paper in our innovation series examines historical adoption of, and amendments to RPSs, existing market certainty associated with these policies, and the outlook for future market certainty. By 2026, the target dates for 29 state RPS policies will have been reached. This paper offers suggestions for mitigating the potential impacts on market certainty associated with expiring RPSs.

Description

Since the late 1990s, state Renewable Portfolio Standards (RPS) and Energy Efficiency Resource Standards (EERS) have been the largest drivers of the renewable energy and energy efficiency sectors. However, state target dates are quickly approaching: by 2026, 29 RPS and 11 EERS policies will need to be extended or replaced in order to maintain market certainty for continued investment and business growth. In this paper series, the Center for the New Energy Economy analyzes energy efficiency policies (Parts 1 and 2) and renewable energy policies (Parts 3 and 4). Parts 1 and 3 discuss the prospects for extending and enhancing established policies and Parts 2 and 4 propose innovative options that could work with or without an EERS and/or RPS.

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Energy policy
Renewable energy sources -- Law and legislation
energy markets

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