Would adoption of Renewables Portfolio Standard (RPS) make use of renewables mandates less expensive?
The Renewables Portfolio Standard (RPS) is a regulatory scheme in which Congress sets minimum renewable energy production standards, then allows renewable energy producers to trade renewable energy credits. Viewed by proponents as a way of encouraging the development of cost-effective renewable energy sources, the RPS: – Serves as a reminder that renewable energy is not currently cost-effective. – Is a cumbersome, ineffective regulatory system that invites fraud, waste, and mismanagement, and will add unneeded layers of bureaucratic regulation. – Results in the transfer of billions of dollars annually to regions that are climatically favorable to renewables production, at the expense of states with high populations or with extensive fossil fuel resources. It is also significant that, contrary to the arguments of some proponents of a renewables mandate, the RPS does not require utilties to make a certain percentage of renewable energy available to consumers. Rather, utilties must ensure
