The Texas Renewable Portfolio Standard
By energy_linguist, November 10, 2009, Energy Efficiency, FAQs
Continuing the examination of the true potential for renewable energy in Texas, the Texas Renewable Portfolio Standard (RPS)
is a vital piece of ongoing increases in clean energy generation in the state of Texas.
The Texas RPS was created by Senate Bill 7 in 1999 to set a standard or required
level of renewable energy for the state’s overall energy portfolio. Diversifying the energy portfolio in Texas provides benefits to the consumers and the Retail Electric Providers (REPs) by introducing additional options for rate plans as well as helping REPs improve their offerings to attract new customers.
The Texas RPS will ensure the following criteria are met by energy companies and enforced by the PUCT:
- Increase the overall utility portfolio in Texas to include 2,000 new
megawatt (MW) by 2009. - With the passing of Senate Bill 20, 5,880 MW of renewable energy by 2015
- A final goal of
10,000 MW by 2025. - Requires REPs and electricity generation companies to support renewable energy as part of their energy portfolio.
- Each REP is required to obtain new clean energy capacity depending on their market share (larger REPs will obviously have stricter renewable energy requirements).
The RPS is a challenging undertaking for a state that consumes more than 12 percent of U.S. energy, and produces and generates a large portion of its electricity from natural gas and oil. Regardless, the Texas RPS is a large portion of the evolving green energy market in Texas, and will continue to serve as a catalyst for the introduction of new renewable energy opportunities.
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