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The renewables portfolio standard in Texas: an early assessment

Langniss, Ole LU and Wiser, R (2003) In Energy Policy 31(6). p.527-535
Abstract
Texas has rapidly emerged as one of the leading wind power markets in the United States. This development can be largely traced to a well-designed and carefully implemented renewables portfolio standard (RPS). The RPS is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation. Though replacing existing renewable energy policies with an as-of-yet untested approach in the RPS is risky, early experience from Texas suggests that an RPS can effectively spur renewables development and encourage competition among renewable energy producers. Initial RPS targets in Texas were well exceeded by the end of 2001, with 915 MW of wind installed in that year alone. RPS compliance costs... (More)
Texas has rapidly emerged as one of the leading wind power markets in the United States. This development can be largely traced to a well-designed and carefully implemented renewables portfolio standard (RPS). The RPS is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation. Though replacing existing renewable energy policies with an as-of-yet untested approach in the RPS is risky, early experience from Texas suggests that an RPS can effectively spur renewables development and encourage competition among renewable energy producers. Initial RPS targets in Texas were well exceeded by the end of 2001, with 915 MW of wind installed in that year alone. RPS compliance costs appear negligible with new wind projects reportedly contracted for well under 3(US)cent/k/Wh, in part as a result of a 1.7(US)cent/kWh production tax credit, an outstanding wind resource and an RPS that is sizable enough to drive project economies of scale. Obliged retail suppliers have been willing to enter into long-term contracts with renewable generators, reducing important risks for both the developer and the retail supplier. Finally, the country's first comprehensive renewable energy certificate program has been put into place to monitor and track RPS compliance. (C) 2002 Published by Elsevier Science Ltd. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Energy Policy
volume
31
issue
6
pages
527 - 535
publisher
Elsevier
external identifiers
  • wos:000181091800005
  • scopus:0037403810
ISSN
1873-6777
DOI
10.1016/S0301-4215(02)00095-2
language
English
LU publication?
yes
id
cd745ae2-55fe-4c48-ba29-cd4f59ddb3d3 (old id 317860)
date added to LUP
2007-09-16 11:22:35
date last changed
2017-09-10 04:27:56
@article{cd745ae2-55fe-4c48-ba29-cd4f59ddb3d3,
  abstract     = {Texas has rapidly emerged as one of the leading wind power markets in the United States. This development can be largely traced to a well-designed and carefully implemented renewables portfolio standard (RPS). The RPS is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation. Though replacing existing renewable energy policies with an as-of-yet untested approach in the RPS is risky, early experience from Texas suggests that an RPS can effectively spur renewables development and encourage competition among renewable energy producers. Initial RPS targets in Texas were well exceeded by the end of 2001, with 915 MW of wind installed in that year alone. RPS compliance costs appear negligible with new wind projects reportedly contracted for well under 3(US)cent/k/Wh, in part as a result of a 1.7(US)cent/kWh production tax credit, an outstanding wind resource and an RPS that is sizable enough to drive project economies of scale. Obliged retail suppliers have been willing to enter into long-term contracts with renewable generators, reducing important risks for both the developer and the retail supplier. Finally, the country's first comprehensive renewable energy certificate program has been put into place to monitor and track RPS compliance. (C) 2002 Published by Elsevier Science Ltd.},
  author       = {Langniss, Ole and Wiser, R},
  issn         = {1873-6777},
  language     = {eng},
  number       = {6},
  pages        = {527--535},
  publisher    = {Elsevier},
  series       = {Energy Policy},
  title        = {The renewables portfolio standard in Texas: an early assessment},
  url          = {http://dx.doi.org/10.1016/S0301-4215(02)00095-2},
  volume       = {31},
  year         = {2003},
}