Overview of States’ Experiences with RPS PoliciesSanya Carley25% by 2025: Michigan’s Renewable Energy Ballot PropositionCenter for Local, State, and Urban PolicyOctober 17, 2012

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Source of Image: Carley, S., with Browne, T. 2012 (Forthcoming). Innovative US Energy Policy: What Has Worked? WIREs: Energy and Environment.

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RPS Variation

Source of Image (modified): NC Solar Center, www.dsireusa.org.

RPS Adoption

Source of Image: Wiser R, Namovicz C, Gielecki M, Smith R. 2007. The experience with renewable portfolio standards in the United States. Electricity Journal 20(4): 8–20.

RPS Stringency

StringencyMandatefinal Mandatestarting

Yearfinal Yearstarting

RPS _Coverage

Source of Image: Carley, S., Miller, C. 2012 (Forthcoming). Regulatory stringency and policy adoption: Reassessment of renewable portfolio standards. Policy Studies Journal.

Michigan Relative to State AveragesMichigan Average

Stringency 74.3 62Year of Final Compliance

2015 2020

Renewable Energy Mandate

10% 22.1%

RPS Design Trends1. Revisions are common2. Average renewable mandate and

stringency increasing over time3. Increased used of exceptions4. Increased use of carve-outs and credit

multipliers5. Expansion of resource eligibility

RPS Compliance

Source of Data: NC Solar Center, http://www.dsireusa.org/rpsdata/index.cfm

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201170%

75%

80%

85%

90%

95%

100%

MeanMedian

Perc

ent

Com

plia

nce

• Data include states with self-reported compliance reports and filings

• Others note that some states are not on track to meet mandates

Renewable Energy Development

Source of Image: Wiser, R., Barbose, G., Holt, E., 2011. Supporting solar power in renewables portfolio standards: Experience from the United States. Energy Policy 39(7), 3894-3905.

Electricity Price Effects• Meta-analysis of

31 state cost projections:▫ Over half project

increases between 0 and 1%

▫ 6 project cost savings

▫ 10 project rate increases >1%

Source of Image: Chen, C, Wiser, R, Bolinger, M. 2009. Weighing the costs and benefits of renewables portfolio standards: A comparative analysis of state-level policy impact projections. Renewable and Sustainable Energy Reviews 13: 552-556.

Job Effects•Renewable energy sector creates more

jobs than the fossil fuel industry per unit of energy produced

•A national RPS of 30% with some annual energy efficiency savings can generate over 4 million job-years

Source of research findings: Wei M, Patadia S, Kammen DM. 2010. Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US? Energy Policy 38: 919–31.

RPS Implementation Challenges

• Intermittency ▫New renewable capacity must be 3-4 times

greater than displaced fossil fuel to avoid supply disruptions

•Transmission and siting▫Renewable energy often requires new

transmission line development, which often causes siting delays

Source of research finding: Lafrancois, BA. 2010. Investment in intermittent renewables under a renewable electricity standard. United States Association for Energy Economics Dialogue 18 (1).

Contact Information:Sanya CarleyAssistant ProfessorSchool of Public and Environmental AffairsIndiana Universityscarley@indiana.edu812-856-0920