On November 20, the Pennsylvania legislature passed SB1030, the Alternative Energy Bill. It requires the state to source 18% of its electricity by renewable sources by 2020. 8% of Pennsylvania's electricity must be generated by so-called "Tier I" renewable sources of energy by 2020, such as solar, wind, geothermal and biomass. It requires 10% of electricity to come from second tier sources such as waste coal, integrated combined coal gasification technology, municipal solid waste, large-scale hydro, demand-side management and distributed generation systems.
According to research by Platts' Analytics group, Pennsylvania will develop 3,600 megawatts (MW) of new wind energy capacity to meet the Tier I requirements of the new standard. The new wind capacity will join 129 MW of wind capacity already generating in Pennsylvania. SB1030 requires over 250 MW of new solar capacity by 2016, and Platts anticipates that Pennsylvania will also develop smaller amounts of new landfill gas generation, animal waste- based generation, and low-impact hydro generation to meet the Tier I requirements of the standard.
"With the passage of SB1030, Pennsylvania is poised to become a major developer and exporter of renewable power," said Jack Ihle, energy analyst at Platts. "Renewable portfolio standard laws in neighboring New York, New Jersey, and Maryland are likely to create strong demand for Pennsylvania renewables."
According to Platts analysis, SB1030 will drive up mid-Atlantic demand for renewables and could tighten these markets as renewable standard laws are implemented over the next several years.
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