The renewables portfolio standards is an initiative that requires all states to create plans to produce energy from renewable resources. There are four main areas of focus, which are Nevada, California, Connecticut, and New York. Each has different rules and regulations for renewable energy generation and are described in more detail below. The standards require that states identify eligible generation resources in addition to renewable energy resources. Some states are exploring incentives to encourage the construction of nuclear power plants, even though nuclear energy isn't usually considered a renewable resource. Although nuclear electricity is largely carbon-free and emission-free, it is not considered a renewable resource. These state policies are generally referred as clean electricity targets or emission–free electricity targets and not renewable portfolio guidelines.
California
California Renewables Portfolio Standard is a program to promote clean, renewable energy. The RPS program is designed to increase the share of renewable energy in the state's electricity supply. Investor-owner utilities, small utilities, multijurisdictional utilities must produce at least 33% of electricity from renewable resources by 2020. By 2030, the goal is to reach sixty percent. This helps to reduce greenhouse gas emissions, lower electricity bills, stabilize rates, and ensures that the grid is more reliable.
Nevada
The Renewables Portfolio Standard in Nevada (RPS) was first adopted in 1997. As technology improved, the standard was later modified to include higher standards. It is intended to decrease dependence on fossil fuel-fired electricity plants and increase renewable energy in the electricity supply. The change in electricity supply can therefore be viewed as a positive for the environment, public health and energy costs. In Nevada, renewable energy represents a diverse portfolio of energy sources that utilities can use to meet demand.
Connecticut
The Renewables Portfolio Standard (RPS), a mandate that energy providers in Connecticut must obtain a certain percentage of their electricity from renewable sources, is currently in effect. The RPS currently mandates retailers to source 20% of energy from renewable resources. The state has a higher target of 40% renewable energy by 2040. The RPS also requires the creation of a plan that is state-wide to encourage the development, deployment and use of renewable energy resources. In Connecticut, the goal of meeting the RPS is quite ambitious.
New York
The New York State Renewables Portfolio Standard is designed to increase renewable energy's share in an utility's electricity portfolio. This goal aligns with the state's Energy Plan which aims at generating 2,400 MW offshore wind by 2030. New York utility companies are required to generate 12.5% of electricity from renewable sources by 2021 and 10% in 2018. The RPS also requires that utilities create demonstration areas for renewable energy.
Puerto Rico
Puerto Rico's legislature has passed a bill that will require utilities to achieve a minimum renewable portfolio standard of 50 percent by 2050. The measure will join California, Hawaii, and Washington, D.C. in pursuing a 100% renewable energy target by that date. High costs associated with fossil fuels have been a problem for the island. The governor will sign the new law. The bill has two main purposes: to reduce the island’s impact on its environment and to lower its electricity bill.
Maryland
Maryland's Renewables Portfolio Standard requires electricity suppliers in Maryland to use a minimum percentage of renewable power. This standard applies to both electric companies that offer Standard Offer Service, (SOS), and competitive suppliers. Every year, electricity suppliers file a Compliance Report with the Commission to ensure that they are meeting the renewable obligation. The report helps consumers make informed decisions about their energy requirements. Maryland is concerned about this issue.