What is the Renewables Portfolio Standard?
A Renewable Portfolio Standard (RPS) is a requirement that an electric power provider, i.e., a Utility, Co-Operative or Municipality, generate or purchase a specified percentage of the power it supplies/sells from renewable energy resources, and thereby guarantee a market for electricity generated from renewable energy resources. Why a Renewables Portfolio Standard? The Renewables Portfolio Standard (RPS) is a flexible, market-driven policy that can ensure that the public benefits of wind, solar, biomass, and geothermal energy continue to be recognized as electricity markets become more competitive. The policy ensures that a minimum amount of renewable energy is included in the portfolio of electricity resources serving a state or country, and — by increasing the required amount over time — the RPS can put the electricity industry on a path toward increasing sustainability. Because it is a market standard, the RPS relies almost entirely on the private market for its implementation. M
