A report by Lawrence Berkeley National Laboratory concludes that state-based renewables portfolio standards (RPS) will raise retail electricity rates on average by less than 1%
On average, they authors predict state RPS’s would cost an average household roughly 40 cents per month. This doesn’t include the many benefits of state RPS obligations, including economic development benefits, risk mitigation, and environmental gains.
The report synthesizes the results of a large number of state-level RPS cost-impact analyses. “These studies have been conducted by a wide range of organizations, and persuasively demonstrate that state-level RPS policies need not break the bank,” says report co-author Ryan Wiser.
State RPS policies have emerged as one of the most important drivers of renewable energy in the U.S. Collectively, the RPS policies that are in place today in 21 states apply to roughly 40% of U.S. electricity load. But the adoption of these policies often hinges on debates over the expected costs and benefits of increased renewable energy use. To inform these debates, a large number of studies have been conducted to forecast the potential impacts of state RPS programs.
Said Cliff Chen, “In our sample are 28 different analyses that cover 18 states, with renewable energy targets that range from just 1% to 33% of electricity supply.” The report does not evaluate the actual realized cost of currently-implemented state RPS policies, but instead focuses on longer term projections.
A powerpoint summary of the report “Weighing the Costs and Benefits of State Renewables Portfolio Standards: A Comparative Analysis of State-Level Policy Impact Projections,” can be found at: http://eetd.lbl.gov/ea/ems/emp-ppt.html. or download the report:
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