Hyderabad, AP -- (SBWIRE) -- 06/13/2010 -- The Renewable Electricity Standard (RES), also known as Renewable Portfolio Standard (RPS), is one of the important policy measures to promote renewable energy in the US. RPS mandates quota obligation for renewables that is legislated and determined by policy regulations. The RPS mechanism generally places an obligation on electricity transmission/distribution companies to produce a specified fraction of their electricity from renewable energy sources. Certified renewable energy generators earn certificates for every unit of electricity they produce and can sell these along with their electricity to transmission companies. These companies pass the certificates to some form of regulatory body to demonstrate their compliance with their regulatory obligations.
RPS has outlined the growth of renewable energy in the US together with federal Production Tax Credits (PTC). RPS has been adopted by 31 states in the US and five other states, namely, Utah, Vermont, Virginia, South Dakota and North Dakota, have adopted voluntary targets instead of binding RPS targets. The state level RPS targets have given a big boost to renewable energy industry in the US. Currently there is no federal RPS policy in the US. However, the federal government in the US is planning to implement a national level RPS.
RPS mandates that a certain percentage of a utility's energy supplied to consumers within the state should come from a renewable sources. In certain cases, RPS has provision for various penalties for non-compliance.
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