Renewable energy policy formulation for electricity generation in the United States

Abstract

While the United States (U.S.) has state-level policies that support renewable energy development, the country does not currently have any federal-level renewable energy policies that are formulated to include national renewable electricity targets. U.S. renewable energy policies include state-level renewable energy portfolio standards (RPSes), which stipulate the minimum renewable electricity that local utilities should provide, the proposed Clean Power Plan, which sets state-by-state targets for emission reduction by 2030, and the Clean Energy Act of 2007, which includes provisions that aim to increase energy efficiency and renewable fuel production. As the RPSes are established at a state level, they have varying renewable energy targets and related timelines that cannot readily be translated into federal law. This study uses an Analytic Hierarchy Process (AHP) to propose national targets for renewable electricity, by first reviewing electrical energy potentials based on the geographic areas defined by the U.S. Census Bureau regions, and then establishing regional and national renewable electricity goals. The goals are based on a quadruple-bottom-line approach (4P) considering technical or “progress”, social or “people”, economical or “profits” and environmental or “planet” factors. The study proposes a model for selecting mandates versus incentives for the renewable electricity alternatives using a benefit/cost ratio computed from the AHP analysis.