Renewable portfolio standard

A renewable portfolio standard (RPS) is a regulation that requires the increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal. Other common names for the same concept include Renewable Electricity Standard (RES) at the United States federal level and Renewables Obligation in the UK. A renewable portfolio standard (RPS) is a regulation that requires the increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal. Other common names for the same concept include Renewable Electricity Standard (RES) at the United States federal level and Renewables Obligation in the UK. The RPS mechanism places an obligation on electricity supply companies to produce a specified fraction of their electricity from renewable energy sources. Certified renewable energy generators earn certificates for every unit of electricity they produce and can sell these along with their electricity to supply companies. Supply companies then pass the certificates to some form of regulatory body to demonstrate their compliance with their regulatory obligations. RPS can rely on the private market for its implementation. In jurisdictions such as California, minimum RPS requirements are legislated. California Senate Bill 350 passed in October 2015 requires retail sellers and publicly owned utilities to procure 50 percent of their electricity from eligible renewable energy resources by 2030. RPS programs tend to allow more price competition between different types of renewable energy, but can be limited in competition through eligibility and multipliers for RPS programs. Those supporting the adoption of RPS mechanisms claim that market implementation will result in competition, efficiency, and innovation that will deliver renewable energy at the lowest possible cost, allowing renewable energy to compete with cheaper fossil fuel energy sources. RPS-type mechanisms have been adopted in several countries, including the United Kingdom, Italy, Poland, Sweden, Belgium, and Chile, as well as in 29 of 50 U.S. states, and the District of Columbia. Renewable Energy (Electricity) Act 2000 (Cth) China adopted a renewable energy target in 2006 and modified it in 2009 to the following targets: The European Union passed the Directive on Electricity Production from Renewable Energy Sources in 2001 and expanded it in 2007 to the following country-wide targets (although member states are free to pass more aggressive targets): The German Renewable Energy Act, since its adoption in 2000, is producing strong growth in renewable power capacity by encouraging private investors through guaranteed Feed-in tariffs.The state of Germany adopted targets more aggressive than the federal EU mandated targets on September 2010: Based on the 1997 Act on the Promotion of New Energy Usage, 118 million KWh was targeted in 2012 (METI). The Republic of Korea adopted the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy since 2012.