Quantifying the impacts of renewable portfolio standards (RPS) on utility integrated resource plans (IRP) sounds straight forward—just add more wind, solar, hydro, biomass, etc., to the plan and...
An emerging model for green power.
continues, more states, and possibly the federal government, will enter this field. Moreover, states such as New Jersey that have existing RPS requirements, are considering elevating those requirements in order to meet state energy master plan goals for renewable energy production. To date, in New Jersey, most electric utilities contemplate SREC purchases as part of their RPS compliance program. Although market risk plays a significant role in the duration of SREC purchase contracts, the hybrid program can provide a ready source of SREC supply, from a single, non-competitively procured source, for years to come, bringing some measure of potential stability to the SREC market. Although this hybrid program was structured in New Jersey, to the extent other states with RPS requirements have regional bond-issuing entities and mandatory local government procurement laws, some form of this program might be contemplated by other states as a more efficient model for meeting the various goals and needs of local government, state RPS, the solar development community, and the electric utility industry.