Benefits of Renewable Portfolio Standards include the following
- Reduced dependence on imported fuels.
- Increased energy security.
- Diversification of fuel and electricity supply.
- Protection against rising and volatile energy costs.
- Reduced air pollution and greenhouse gas emissions.
- New employment and economic development opportunities.
Electricity generation and distribution is a very complicated process. Due to the nature of the power pool – also referred to as the grid or distribution system – renewable and nonrenewable power cannot be traced from specific power plants to the power pool and back out to a specific customer. In New England, including New Hampshire, renewable energy certificates (RECs) are the mechanisms used to track power generation from renewable resources. Each REC is a marketable/tradable entity that represents one megawatt hour (1,000 kWh) of power generation from a renewable energy source. To comply with an RPS, electricity suppliers must purchase RECs to meet the minimum renewable percentages required by the RPS; if not, they must pay a penalty, which ultimately becomes revenue for renewable energy power plants.
In addition to establishing minimum renewable standards, New Hampshire’s Renewable Energy Act also establishes a commission to make reports to the General Court and requires the Office of Energy and Planning to conduct a study of incentives to promote thermal renewable energy.
- Economic Impact of a New Hampshire Renewable Portfolio Standard
(UNH Economic Analysis, February 2007) - EPA’s Renewable Portfolio Standards Web site
- New Hampshire’s Renewable Energy Act (House Bill 873-FN-LOCAL)
- PUC 2500 Rule, Electric Renewable Portfolio Standard (Adopted - 11/21/07)
- New Hampshire Sustainable Energy Association - Renewable Portfolio Standards
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