Renewable Portfolio Standard (RPS)
A state mandate requiring utilities to generate or purchase a specified percentage of electricity from renewable sources by a target date. 30+ states and DC have an RPS.
Why It Matters
RPS mandates create demand for renewable energy, supporting SREC markets and driving utility investment in solar and wind that can lower wholesale electricity costs.
Related Terms
RPS (Renewable Portfolio Standard)
A state regulation requiring utilities to source a minimum percentage of electricity from renewable resources by a target date. Also called a Renewable Energy Standard (RES).
Clean Energy Standard
A state or federal policy requiring utilities to source an increasing percentage of electricity from clean energy sources (not just renewables — may include nuclear, CCS). More inclusive than an RPS.
REC (Renewable Energy Certificate)
A tradeable certificate representing the environmental attributes of 1 MWh of renewable electricity generated. Utilities buy RECs to meet clean energy mandates.