Define: Renewable Electricity Standard

A Renewable Electricity Standard (RES) is a policy that requires utilities to obtain a certain percentage of their electricity from renewable energy sources, such as wind, solar, hydro, or geothermal power.

A RES is important because it helps promote the use of clean and sustainable energy sources, reducing greenhouse gas emissions and dependence on fossil fuels. It also encourages investment in renewable energy technologies and creates jobs in the renewable energy sector.

A RES typically sets a target percentage of renewable energy that utilities must meet by a specific deadline. Utilities can comply by generating renewable energy themselves, purchasing it from renewable energy producers, or by purchasing Renewable Energy Credits (RECs) from other sources.

The mandatory nature of a RES depends on the specific legislation or policy in place. In some jurisdictions, a RES is legally binding, and utilities must comply with the set targets. In other cases, it may be voluntary or have certain exemptions.

The benefits of a RES include reducing greenhouse gas emissions, improving air quality, diversifying the energy mix, promoting technological innovation, creating jobs, and enhancing energy security.

Penalties for non-compliance with a RES vary depending on the jurisdiction. In some cases, utilities may face financial penalties or be required to purchase RECs to make up for the shortfall in renewable energy generation.

Yes, utilities can trade RECs. RECs represent the environmental attributes of renewable energy generation and can be bought and sold separately from the physical electricity. This allows utilities to meet their RES targets by purchasing RECs from other entities that have generated renewable energy.

Yes, a RES can be adjusted over time to reflect changing energy needs, technological advancements, and policy goals. The targets and deadlines can be revised through legislative or regulatory processes.

Currently, there is no federal law mandating a RES in the United States. However, several states have implemented their own RES policies, and there have been proposals for a federal RES in the past.

The impact of a RES on electricity prices can vary depending on factors such as the availability and cost of renewable energy resources, the competitiveness of renewable technologies, and the specific design of the RES policy. Studies have shown that the long-term benefits of reduced emissions and improved energy security often outweigh any short-term cost increases.