Business Insights: State level political desire needed for a federal mechanism for renewable energy

The Renewable Portfolio Standards (RPS) has been the main driver for the growth of renewables in the US. But not all states have taken it forward, fearing damaging the coal industry and the resultant political fallout, suggests a new report into the US state by state electricity market outlook from independent market analyst, Business Insights.

The RPS creates a mandate for renewable electricity share in power generation for adhering states. An RPS is a regulation which requires increased share of energy from renewable sources, such as wind, solar, biomass, and geothermal before a predetermined timeline. In the US, the RPS is subject to the discretion of each state. The individual states decide whether to adhere to the RPS and build a share of the US total renewable power generation.

Paul Marshall, energy analyst at Business Insights, comments: "Renewables have experienced the exponential growth in states which have adopted the RPS, particularly being very successful when coupled with the federal production Tax Credits (PTC). "

The number of states adhering to the RPS is rising, which is further contributing to the growth of renewables. The latest addition in US states following the RPS is Oklahoma, which announced the RPS in May 2010, aiming to achieve 15% power generation from renewables by 2015. As of June 2010, 31 US states adopted the RPS along with District of Columbia and six additional states approved conditional or non-mandatory renewables portfolio goals

"Because of the success of the state-level RPS, the US Senate Committee on Energy and Natural Resources promised to consider a federal level RPS mechanism to promote renewables across the nation. However, work must be done to deliver state-level political support to make this a reality" concludes Paul.

States such as Idaho, South Carolina, Florida, Alabama, and Georgia do not adopt the RPS mainly due to lack of state-level political support for such a policy. Wyoming, Indiana, and Kentucky are reluctant to follow the RPS due to their strong coal lobbies, whom fear enactment of the RPS will drastically reduce the coal use in these states.

Business Insights: The US State by State Electricity Market Outlook:
http://www.reports-research.com/market-surveys/state-state-electricity-market-outlook-p-138895.html

Business Insights: More market data and market reports:
http://www.reports-research.com/market-surveys/business-insights-m-35.html

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