RPS Definition

1
RPS Definition

• A renewable portfolio standard is a state
  regulatory policy that requires electricity
  providers to obtain a minimum percentage of their
  power from renewable energy resources by a
  certain date.
• Definition of renewable varies greatly across
  states.

2
How do you define renewable?

• Renewable Electricity coming from generation
  sources where the fuel is renewed on a short-term
  basis.
• New Renewable Renewables built after a certain
  year. Unless specified in a RPS, sellers can buy
  up existing sources i.e. dirtier renewables.
• Clean Renewable Renewables that do not create
  pollution or major environmental damage.

3
States with RPS
Virginia Voluntary RPS, 12 of base year (2007)
sales by 2022
4
Virginia RPS - Status

• RPS goal articulated in 2008 Virginia Energy
  Plan, current Senate Bill No. 1348 prescribes the
  program
• Voluntary, electric-utility may apply to the SCC
  for approval to participate in a RPS program if
  the applicant has a reasonable expectation of
  achieving 12 of its base year electric energy
  sales from a combination of renewable energy
  sources and clean demand response programs by
  2022
• Base Year Total energy sales less the percent of
  energy that was supplied by nuclear
• As an incentive to join the program, utilities
  are paid a premium (200 basis points) above their
  approved Return on Equity

5
Global Increase In Electricity Generation From
RenewablesWill Provide 4000 Twh, 30 of Total
IncreaseHydro, Wind and Biomass Major
Contributors
Source International Energy Agency
6
Projected Investment Cost for RenewablesHigher
but No Fuel CostsNew Coal 2500, Gas 800, Nuclear
3500-5000 /kw
Source International Energy Agency
7
Projected Cost of Electricity from
Renewableswithin the Range of New Coal, Gas and
NuclearSolar Expected to Drop in the Range by
2030
Source International Energy Agency
8
At a 20 carbon tax, nuclear is lowest cost At a
50 carbon tax, wind and biomass become
competitive
Source Electric Power Research Institute
9
Assumes carbon capture and storage for
PC/IGCC Assumes technology improvements for
renewables Higher capital costs of PC/IGCC makes
renewables and nuclear lowest cost
Source Electric Power Research Institute