Quantifying the impacts of a national, tradable renewables portfolio standard

Journal Article · Thu May 01 04:00:00 EDT 1997 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(97)80558-1· OSTI ID:518450

Bernow, S; Dougherty, W; Duckworth, M

A national renewables portfolio standard with tradable credits, like the one that was proposed in legislation in the 104th Congress, could cost residential consumers just pennies a week and guarantee markets for near-commercial renewable technologies, leading to the development of the renewables industry and multiple environmental benefits in restructured electricity markets. With its inclusion in Rep. Schaefer`s Electricity Consumer`s Power to Choose Act of 1996, the renewables portfolio standard (RPS) became firmly established as a leading federal mechanism for preserving and promoting the benefits of renewable energy in restructured electricity markets. The RPS policy approach has since consolidated this position through its inclusion in Senator Bumpers`s proposed restructuring legislation, thereby acquiring both bi-partisan and bicameral support. The authors felt it was timely and important to attempt to quantify the probable impacts of the policy. Their analysis suggests that it will achieve its goal at very little cost. Similar analyses of other RPS proposals would demonstrate their costs, benefits and impacts. Renewable generating technologies bring a wide range of benefits to society. By displacing fossil-fired generation, they can reduce carbon emissions, as well as regional emissions of acid rain precursors, particulate matter and heavy metals, thereby reducing the negative health impacts of electricity generation and facilitating compliance with emissions regulations. In spite of dramatic cost reductions in recent years, renewable technologies are at present rarely competitive with conventional energy alternatives on the basis of price alone. In addition, renewables face many non-price barriers to market entry. In order to overcome these barriers and guarantee their survival in competitive markets, the authors believe that a package of policies, including an RPS, is required to support renewables, and thus help realize their many benefits.

• OSTI ID: 518450
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 4 Vol. 10; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
ECONOMIC ANALYSIS
ENERGY POLICY
ENERGY SOURCE DEVELOPMENT
RENEWABLE ENERGY SOURCES