Transcript Indiana University Dean’s Council Meeting September 2010

Overview of States’ Experiences with
RPS Policies
Sanya Carley
25% by 2025: Michigan’s Renewable Energy Ballot
Proposition
Center for Local, State, and Urban Policy
October 17, 2012
2
Source of Image: Carley, S., with Browne, T. 2012 (Forthcoming). Innovative US Energy Policy: What Has Worked? WIREs:
Energy and Environment.
3
RPS Variation
Source of Image (modified): NC Solar Center, www.dsireusa.org.
RPS Adoption
Source of Image: Wiser R, Namovicz C, Gielecki M, Smith R. 2007. The experience with renewable portfolio standards in the
United States. Electricity Journal 20(4): 8–20.
RPS Stringency
Mandate  Mandate

final
starting

Stringency  

 RPS_ Coverage
Year

Year

final
starting

Source of Image: Carley, S., Miller, C. 2012 (Forthcoming). Regulatory stringency and policy adoption: Reassessment of
renewable portfolio standards. Policy Studies Journal.

Michigan Relative to State Averages
Stringency
Year of Final
Compliance
Renewable
Energy Mandate
Michigan
74.3
2015
Average
62
2020
10%
22.1%
RPS Design Trends
1. Revisions are common
2. Average renewable mandate and stringency
increasing over time
3. Increased used of exceptions
4. Increased use of carve-outs and credit multipliers
5. Expansion of resource eligibility
RPS Compliance
100%
Percent Compliance
95%
90%
Mean
85%
Median
80%
75%
70%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
• Data include states with self-reported compliance reports and filings
• Others note that some states are not on track to meet mandates
Source of Data: NC Solar Center, http://www.dsireusa.org/rpsdata/index.cfm
Renewable Energy Development
Source of Image: Wiser, R., Barbose, G., Holt, E., 2011. Supporting solar power in renewables portfolio standards: Experience from the United
States. Energy Policy 39(7), 3894-3905.
Electricity Price Effects
• Meta-analysis of
31 state cost
projections:
▫ Over half project
increases between 0
and 1%
▫ 6 project cost savings
▫ 10 project rate
increases >1%
Source of Image: Chen, C, Wiser, R, Bolinger, M. 2009. Weighing the costs and benefits of renewables portfolio standards: A comparative analysis
of state-level policy impact projections. Renewable and Sustainable Energy Reviews 13: 552-556.
Job Effects
• Renewable energy sector creates more jobs than the
fossil fuel industry per unit of energy produced
• A national RPS of 30% with some annual energy
efficiency savings can generate over 4 million jobyears
Source of research findings: Wei M, Patadia S, Kammen DM. 2010. Putting renewables and energy efficiency to work: How
many jobs can the clean energy industry generate in the US? Energy Policy 38: 919–31.
RPS Implementation Challenges
• Intermittency
▫ New renewable capacity must be 3-4 times greater
than displaced fossil fuel to avoid supply disruptions
• Transmission and siting
▫ Renewable energy often requires new transmission line
development, which often causes siting delays
Source of research finding: Lafrancois, BA. 2010. Investment in intermittent renewables under a renewable electricity standard.
United States Association for Energy Economics Dialogue 18 (1).
Contact Information:
Sanya Carley
Assistant Professor
School of Public and Environmental Affairs
Indiana University
[email protected]
812-856-0920