The renewable energy standard (RES), also known as the renewable portfolio standard (RPS), is a policy that mandates an increase in the generation of energy from renewable sources.
The specifics of this policy can vary depending on the state or organization implementing it. The primary objective is to boost the capacity of renewable power generation within a particular region or market, employing various approaches.
Under a RES, electricity producers are obligated to contribute a minimum portion of renewable energy to meet the overall demand. This policy can set specific targets or goals for different types of renewable technologies, encouraging innovation and advancements in renewable energy generation.
Additionally, the RES can establish a market for renewable energy certificates (RECs) that are generated by renewable energy producers. This system creates a demand for RECs and provides financial incentives for their production. As a result, the number of renewable energy sources within a regional or national grid is increased.
How is RES (Renewable Energy Standard) Implemented?
The implementation of the renewable energy standard (RES) can be carried out by a state, regional organization, or national government. The first step is drafting and passing a policy that outlines the renewable energy generation objective.
Various strategies can be employed to meet the requirements of the RES, depending on the specific goals and guidelines of the policy. For instance, California has set a target of achieving 60% renewable energy by the year 2030.
Renewable energy certificates (RECs) generated from these renewable sources can be traded in REC markets. To meet their compliance obligations, grid operators purchase RECs in accordance with the RES.
It’s important to note that RES can be implemented at the state level, with each state having its own specific RES based on its unique considerations. However, it can also be imposed by a national government.
What are the Goals of RES?
The goals of the RES are as follows:
1. Provide Market Certainty: RES policies ensure fairness among electricity generators by not favoring less efficient technologies and creating a stable market environment.
2. Increase Generation from Diverse Sources: RES policies set targets for a growing percentage of electricity generation to come from renewable sources, promoting a more diverse energy mix.
3. Expand Clean Energy Generation: RES policies stimulate the market for renewable energy generators and encourage the development of clean energy technologies.
4. Reduce Greenhouse Gas Emissions: By expanding renewable energy generation, RES policies reduce regional dependence on fossil fuels, leading to lower greenhouse gas emissions.
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