Thanks to technology advances, competition and state Renewable Portfolio Standards (RPS), the average price utilities spend for renewable energy has come way down.
In California, for example, when utilities first signed contracts to comply with the state’s RPS, they had to spend 21 cents per kilowatt-hour (kWh).
Now, the average price is down to just 9.6 cents per kWh for projects approved in 2012, a big drop from the previous year of 12.6 cents per kWh.
California’s utilities reached the goal of 20% renewables last year – way ahead of the 2020 deadline – so the state raised the target to an impressive 33% by 2020, which they are on track to meet. Carbon emissions are also down for the third consecutive year.
Last year, 1.9 gigawatts (GW) of renewable energy came online and 3.7 GW is scheduled for this year. Almost 5 GW has been added since 2003, when the RPS went into effect.
Unfortunately, as most states get close to meeting their RPS, they haven’t raised the target, causing utilities to back off from buying more renewable energy. But bills have been introduced in more than 20 states to expand or strengthen standards.
30 states including Washington DC have RPS laws.
As you know if you read our news, ALEC is pushing legislation in the states that would roll back or eliminate their RPSs. 42 laws are moving through state legislatures and courts in over 24 states, according to the North Carolina Solar Center, which tracks state renewable energy policies.
Republicans have introduced a bill in North Carolina to do just that. In addition to repealing the requirement that utilities buy renewable energy (passed in 2007), they would no longer have to promote energy efficiency through free energy audits and rebates for solar systems and efficient appliances.
North Carolina’s RPS requires utilities to get 12.5% of energy from renewables and efficiency programs by 2021. If the new bill passes that would be reduced to just 3%.
The policy has created a fledgling renewable energy industry there that’s gaining momentum, spawning a surge in big solar farms, reports NewsObserver. A planned 100 megawatt solar plant will be one of the biggest in the US.
Since 1998, the US has installed 53 GW of non-hydro renewable energy and the majority (63%) is in states that have RPSs.
Loading...