Renewable Energy Portfolio Standards Research Articles

Implementing renewable energy portfolio standards: The good, the bad, and the ugly in a two state comparison

Understanding how household practices with regard to energy usage change and how to most effectively encourage the adoption of technologies that utilize renewable energy sources at the residential scale are important issues for addressing the environmental impacts of energy use. Here, the social practices model (Spaargaren, 2003) is applied to examine solar technology adopters in two U.S. States who were interviewed about adopting residential solar electric technology and specifically about their experiences with the rebate and incentive programs available to them. Examining the policies and interrogating their potentially unintended consequences from the perspective of the user sheds light on how residential solar incentive programs act as systems of provision, shaping the practices of solar technology adopters, in hopes of improving these incentive programs and effectively encouraging increased residential solar technology adoption. Findings suggest that feed-in tariffs offer additional positive outcomes related to broadening the context for adoption and encouraging future energy conservation while size restrictions, wholesale pricing in net metering agreements, and inconsistent policy mechanisms across utilities in the same state all have potentially unintended negative consequences. Utilizing a perspective attentive to social practice offers a means of improving the design and implementation of energy policy.

Additionality of wind energy investments in the U.S. voluntary green power market

In the United States, electricity consumers are told that they can “buy” electricity from renewable energy projects, versus fossil fuel-fired facilities, through participation in voluntary green power markets. The marketing messages communicate to consumers that they are causing additional renewable energy generation and reducing emissions through their participation and premium payments for a green label. Using a spatial financial model and a database of registered Green-e wind power facilities, the analysis in this paper shows that the voluntary Renewable Energy Certificate (REC) market has a negligible influence on the economic feasibility of these facilities. Nevertheless, voluntary green power marketers at least implicitly claim that buying their products creates additional renewable energy. This study indicates the contrary. Participants in U.S. voluntary green power markets associated with wind power, therefore, appear to be receiving misleading marketing messages regarding the effect of their participation. In the process of completing this analysis, a potentially relevant factor in explaining investor behavior was identified: the potential for the overlap of voluntary REC markets with compliance REC markets that supply utilities need to meet their obligations of Renewable Energy Portfolio Standard (RPS). The majority of state RPS rules allow for regional or even national sourcing of RECs, meaning that projects are generally eligible to provide compliance RECs to utilities not only in their home states, but in several other states.

Improving scenario discovery using orthogonal rotations

Scenario discovery offers a new means to characterize and communicate the information in computer simulation models under conditions of deep uncertainty. The approach first defines scenarios as the future states of world where a proposed policy fails to meet its goals and then uses statistical algorithms to find concise descriptions of such regions in large databases of simulation model results. Current scenario discovery applications rely on the Patient Rule Induction Method (PRIM), a user-interactive bump-hunting algorithm that identifies hyper-rectangular regions in the input space of the simulation model. While often successful, scenario discovery applications have been limited because in general a policy's vulnerabilities are not well described by the PRIM's hyper-rectangular regions. This study proposes and evaluates improved scenario discovery algorithms that address this challenge with a Principal Component Analysis (PCA)-based preprocessing step that transforms the original model input parameters so that PRIM can then identify high quality hyper-rectangular scenarios in the new rotated coordination system. We explore two versions. PCA-PRIM allows rotations among all uncertain model input parameters and CPCA-PRIM (for constrained PCA-PRIM) only allows rotations among parameters within user-specified domains. The latter may provide more useful information to users, who may find scenario axes described by linear combinations of related domain parameters more interpretable than combinations of dissimilar parameters. We run two sets of tests on the PCA-PRIM and CPCA-PRIM algorithms, the first using simulated test date and the second results from a model used in a previous RAND study of the cost-effectiveness of renewable energy portfolio standards. We find that the new algorithms produce higher quality scenarios than PRIM alone as evaluated by several important measures of merit. In the test data, PCA-PRIM produces improvements averaging 37 percent, and CPCA-PRIM averaging 14 percent, over PRIM alone. In the renewable energy policy case study, PCA-PRIM and CPCA-PRIM exhibit similar improvements of about 16 percent over PRIM, and CPCA-PRIM generates scenarios interpretable by, and that provide useful information to, decision makers.

Empirical Estimates of the Influence of Renewable Energy Portfolio Standards on the Green Economies of States

The contribution of state renewable energy portfolio standards (RPS) to green business and job growth is controversial. This research estimated the contribution of RPS to state green industrial growth empirically by stipulating and econometrically controlling for a range of state economic growth variables and, having done so, adding RPS variables. Our modeling framework assumed that if RPS have any effect on the green economy in a state, the effect occurs after a period of social and economic adjustment processes that began when the RPS were enacted. Our findings indicate that the presence of RPS have no discernible effect one way or the other on green job growth, but the persistence of RPS through time does cause an increase in the number of green businesses.

Economic analysis of a grid-connected commercial photovoltaic system at Colorado State University-Pueblo

The paper presents economic analysis of a 1.2 MW capacity grid-connected photovoltaic (PV) power plant installed at the Colorado State University-Pueblo, in December 2008. The project was commissioned by a regional utility company as per the renewable energy portfolio standards guidelines of the state. The system is installed on the customer's property funded by a third party investor. The investor will receive tax credits and rebates in addition to monthly revenue from the energy sales. Array efficiency is used to measure the performance of the PV system and predict the amount of energy generation and resulting cash flows. Based on the project investment, costs and revenues, an economic model of the project is proposed. Economic analysis of the PV installation is performed using Microsoft Excel 2007 and validated by the RETScreen software. It is identified that the cost of the PV system, financial assistance program, and energy pricing are crucial for the economic viability of PV project in addition to a favorable climatic condition. IRR of the project is 10.7% for the given tax credits and rebates. At least 4% tax credit is required to have a breakeven of the project. Different economic scenarios were analyzed, and price of the PV generated energy at different levels of tax credits and IRR is presented. This analysis is applicable to large size customers who want to invest in or own a PV plant in the US. The economical model could be applicable to other regions to devise investment option instruments. The current cost scenario presented in the paper provides readers a notion of cost improvement witnessed by PV system in last four years.

Internal, external and location factors influencing cofiring of biomass with coal in the U.S. northern region

The use of biomass as a source of energy has been identified as a viable option to diminish reliance on fossil fuels. We parameterized the effect of selected internal (e.g. coal-fire presence), external (e.g. price and renewable energy mandates) and location (e.g. biomass availability, infrastructure) variables on the likelihood of using biomass in cofiring with coal by building a two-stage econometric model. The first stage controlled for factors driving the spatial location of coal power plants and the second stage concentrated on factors influencing cofiring. The empirical model was applied in the Northeast quadrant of the U.S. where the unit of observation was an individual county. Results of our model stress the significant effect of existing flexible coal feeding systems that permit the incorporation of biomass, transportation infrastructure and biomass availability (woody biomass in particular in the form of residues from the wood products industry). State-level renewable energy portfolio standards showed no statistically significant effect on the adoption of cofiring biomass with coal. Further developments of biomass cofiring in the U.S. northern region are most likely to take place in the Great Lakes region.

The impact of state financial incentives on market deployment of solar technology

Many states have adopted financial incentives to encourage market deployment of solar energy technology. This paper employs a cross-sectional time-series approach to evaluate the extent to which state solar financial incentives systematically encouraged market deployment of solar photovoltaic (PV) technology from 1997 to 2009. The results demonstrate that states offering cash incentives such as rebates and grants experienced more extensive and rapid deployment of grid-tied PV technology than states without cash incentives over the study period. The analysis also finds that the presence of state renewable energy portfolio standards and specific solar carve-out provisions within them heavily influenced the market deployment of grid-tied solar PV technology through 2009.

California’s Renewable Energy Transmission Initiative as a model for state renewable resource development and transmission planning

Given the lack of US federal leadership in climate change regulation, states have taken the lead in the implementation of aggressive policies to promote economic development, decrease dependence on foreign energy imports, and achieve broad environmental goals through increased reliance on renewable energy sources. The renewable energy portfolio standard (RPS) has become the most common tool used by states to achieve their particular policy goals; however, numerous barriers stand in the way of electricity providers seeking compliance with the RPS mandate. The California Renewable Energy Transmission Initiative (RETI) was a statewide attempt to overcome problems related to transmission planning and costs, private and public land-use issues, and environmental impacts. By seeking the involvement of broad stakeholder groups in the identification and evaluation of potential renewable energy zones, RETI created a roadmap for future renewable energy development in California that is both economically and environmentally sound. Through a collaborative transmission planning process, RETI provides key insights into the challenges faced by states attempting to comply with their RPS mandates, including those relating to concerns about participant selection, locating transmission, permitting, and the timing of both the planning and implementation stages of the initiative. In this paper, I evaluate RETI’s success in achieving its stated goals while also identifying areas of concern not addressed by the initiative. The results of this analysis provide guidance for states implementing their own RPS programs.

California's Renewable Energy Transmission Initiative as a model for state renewable resource development and transmission planning

Given the lack of US federal leadership in climate change regulation, states have taken the lead in the implementation of aggressive policies to promote economic development, decrease dependence on foreign energy imports, and achieve broad environmental goals through increased reliance on renewable energy sources. The renewable energy portfolio standard (RPS) has become the most common tool used by states to achieve their particular policy goals; however, numerous barriers stand in the way of electricity providers seeking compliance with the RPS mandate. The California Renewable Energy Transmission Initiative (RETI) was a statewide attempt to overcome problems related to transmission planning and costs, private and public land-use issues, and environmental impacts. By seeking the involvement of broad stakeholder groups in the identification and evaluation of potential renewable energy zones, RETI created a roadmap for future renewable energy development in California that is both economically and environmentally sound. Through a collaborative transmission planning process, RETI provides key insights into the challenges faced by states attempting to comply with their RPS mandates, including those relating to concerns about participant selection, locating transmission, permitting, and the timing of both the planning and implementation stages of the initiative. In this paper, I evaluate RETI’s success in achieving its stated goals while also identifying areas of concern not addressed by the initiative. The results of this analysis provide guidance for states implementing their own RPS programs.

The effects of vehicle-to-grid systems on wind power integration

Renewable energy portfolio standards have created a large increase in the amount of renewable electricity production, and one technology that has benefited greatly from these standards is wind power. The uncertainty inherent in wind electricity production dictates that additional amounts of conventional generation resources be kept in reserve, should wind electricity output suddenly dip. The introduction of plug-in hybrid electric vehicles into the transportation fleet presents an possible solution to this problem through the concept of vehicle-to-grid power. The ability of vehicle-to-grid power systems to help solve the variability and uncertainty issuess in systems with large amounts of wind power capacity is examined through a multiparadigm simulation model. The problem is examined from the perspectives of three different stakeholders: policy makers, the electricity system operator and plug-in hybrid electric vehicle owners. Additionally, a preliminary economic analysis of the technology is performed, and a comparison made with generation technologies that perform similar functions. Copyright © 2011 John Wiley & Sons, Ltd.

Hot topics in noise: Wind turbines

Since 2000, the installed capacity of wind energy in the U.S. increased seventeen-fold, with the greatest increases in recent years. Today, we commonly find terrestrial wind farms with individual towers of 80–100 m and rotor diameters up to 112 m. The number of wind farms is projected to increase, as many states are adopting renewable energy portfolio standards in an effort to help combat climate change. As wind farms grow, there are inevitably more potential conflicts related to the impacts of the noise generated by the turbines. Noise has taken center stage in both proceedings for proposed wind farms and complaints from some operating wind farms. This talk will review the major issues regarding wind turbine noise, including sound emissions, sound propagation and modeling, sound monitoring, human perception, and regulation. Areas of controversy will be explored, including infrasound and low frequency sound, amplitude modulation, and health impacts.

All RECs Are Local: How In-State Generation Requirements Adversely Affect Development of a Robust REC Market

While most U.S. states have now adopted renewable energy portfolio standards, most also require a certain percentage of such generation to be “home grown.” These requirements lead to volatile and reduced-value markets for renewable energy credits and ultimately increase the cost of renewable energy. A review of the requirements suggests that either national or regional markets be fostered to reduce such adverse impacts of the requirements.

California’s Renewable Energy Transmission Initiative as a Model for State Renewable Resource Development and Transmission Planning

In the absence of federal climate change regulation, states have taken the lead in the implementation of aggressive policies to promote economic development, decrease dependence on foreign energy sources, and achieve broad environmental goals through increased reliance on renewable energy sources. The renewable energy portfolio standard has become the most common tool used by states to achieve their particular policy goals; however, numerous barriers stand in the way of electricity providers seeking compliance with the RPS mandate. The California Renewable Energy Transmission Initiative (“RETI”) was a statewide attempt to overcome problems related to transmission planning and costs, private and public land use issues, and environmental impacts. By seeking the involvement of broad stakeholder groups in the identification and evaluation of potential renewable energy zones, RETI hoped to create a roadmap for future renewable energy development in the state that is both economically and environmentally sound. Its progress thus far provides key insights into the challenges faced by states attempting to comply with their RPS mandates. This paper examines several key components of the RETI process, focusing primarily on the concerns of participant selection, locating transmission, permitting, and the timing of both the planning and implementation stages of the initiative. The paper evaluates RETI’s success in achieving its stated goals while also identifying areas of concern not addressed by the initiative. The results of this analysis provides guidance for states implementing their own RPS programs.

Wasting Energy: Waste-to-Energy’s Struggle Highlights America’s Failure to Incentivize Renewable Energy

This paper argues that waste-to-energy’s stagnation in the U.S. illustrates the failure of state-based renewable energy portfolio standards to efficiently incentivize the growth of renewable energy. The absence of a federal renewable energy standard and resultant patchwork of state-based regimes has left the country with no consistent definition of “renewable energy.” Consequently, developers of certain energy technologies are uncertain as to whether their product will qualify as “renewable,” and thus are unable to confidently invest the millions of dollars needed to deploy these technologies. Using waste-to-energy as a case study, this paper argues that a national renewable portfolio standard, defining “renewable energy” consistently and inclusively, would help to create a maximally efficient renewable energy market.

From Renewable to Alternative: Waste Coal, the Pennsylvania Alternative Energy Portfolio Standard, and Public Legitimacy

Efforts to explain the failure of the U.S. federal government to pass energy legislation to reduce greenhouse gas emissions often turn to the theory of resource dependency. This theory is challenged by Pennsylvania's adoption of a Renewable Energy Portfolio Standard (RPS) policy, since Pennsylvania produces more coal than any of the other 27 with an RPS policy. However, we resist rejecting a theory that emphasizes resource dependence in this case, because Pennsylvania's RPS policy includes a fossil fuel: waste coal. Instead, we argue that a theory of the state that emphasizes policymakers' role in managing public legitimacy is needed to explain how resource dependence becomes a point of contestation in policy hearings. We demonstrate how Pennsylvania policymakers used rhetorical maneuvers and changed the title of the policy to justify the inclusion of waste coal in a renewable energy policy.

Clean energy technology and regulatory interventions for Greenhouse Gas emission mitigation: Sri Lankan power sector

This paper presents the impact of technological and regulatory interventions, specifically the impact of the Renewable Energy Portfolio Standards (RPS) on the least-cost electricity generation expansion plan in a country. The case study used in the paper is the power generation system in Sri Lanka where the current policy is to have a renewable energy based generation penetration level of 10% by 2015. This study considers available renewable technologies as supply-side options together with their technical potential and economic feasibility. It also examines the impact of these interventions on overall power sector emissions including Greenhouse Gas (GHG) emissions. It has been found that the 10% RPS target by 2015 can be achieved with an additional cost burden of only 1.3% of the total cost of the plan. The results also show that small hydropower is the best non-conventional renewable energy technology needing minimum financial incentives in achieving the target. Fuelwood-fired thermal power and wind power require significant level of government incentives if they are to play a role in the declared RPS of Sri Lanka. It is concluded that small power systems like the one in Sri Lanka can still contribute to emission mitigation with regulatory interventions such as RPS without significant additional costs. It is important to select the appropriate technologies, decide on their individual allocations and the optimal timing and level of penetration of these technologies to minimize the economic impact. Further, internalizing the use of these technologies in the planning process strengthens the hands of the planners in justifying their contributions to supplying demand while mitigating emissions.

Political Science and Prediction: What's Next for U.S. Climate Change Policy?

AbstractThis article analyzes how U.S. climate change politics and policy making are changing in the public, private and civil society sectors, and how such changes are likely to influence U.S. federal policies. It outlines the current status of U.S. climate change action and explores four overlapping pathways of policy change: (1) the strategic demonstration of the feasibility of climate change action; (2) the creation and expansion of markets; (3) policy diffusion and learning; and (4) the creation and promulgation of norms about the need for more aggressive climate change action. These four pathways seek to fruitfully draw from rationalist and constructivist approaches to policy analysis, without collapsing or confusing the different logics. Building on this analysis, it predicts that future federal U.S. climate policy will include six major components: (1) A national cap on GHG emissions; (2) A national market based cap‐and‐trade GHG emissions trading scheme; (3) Mandatory renewable energy portfolio standards; (4) Increased national product standards for energy efficiency; (5) Increased vehicle fleet energy efficiency standards; and (6) Increased federal incentives for research and development on energy efficiency issues and renewable energy development. In addition, expanding federal climate policy may bring about significant changes in U.S. foreign policy as U.S. international re‐engagement on climate change is likely to occur only after the development of more significant federal policy.

Industrial transformation towards sustainability of the energy system

Human induced climate change is one of the single most significant indicators that human society is not pursuing a sustainable trajectory. Managing the risks requires a major transformation of the way energy needs are met. Such a transformation includes changes in the production and consumption system and the incentive structure that shapes this system. The major driving force for transformation is the public concern about the environmental impact of the present fossil fuel based energy system. We may expect that energy producers, encouraged by governments, NGOs and consumer preferences will be responding to these concerns and expectations sooner or later. In fact a number of major international energy companies are presently adjusting their strategies to the needs and concerns of the public. A mix of measures including energy efficiency, a switch to natural gas, major investments in low carbon and renewable energy technologies and underground storage of carbon are elements of such new strategies. Consumers in a number of OECD countries have expressed their willingness to pay more for energy, provided it is green and clean. NGOs continue to put pressure on governments to deal with the climate problem. The challenge for governments is to develop an institutional framework that helps the producers and consumers to go through a transformation of the energy system. As different groups in society are likely to support different strategies, this paper suggests that a pluralistic policy approach including efficiency standards, renewable energy portfolio standards, carbon taxes, and the introduction of a system of tradable emission permits is the most promising approach for a transformation towards a low carbon energy economy. Research can support a transformation of the energy system by exploring the various transformation scenarios. Such research should take a multi-disciplinary approach, it should focus on the energy system as a whole, including production, consumption and the incentive structure that shapes the interaction between the two and it should be international in scope.