Colorado
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 06/10/2009
| Incentive Type: |
Renewables Portfolio Standard |
| State: |
Colorado |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
"Recycled Energy",
Anaerobic Digestion,
Fuel Cells using Renewable Fuels
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| Applicable Sectors: |
Municipal Utility,
Investor-Owned Utility,
Rural Electric Cooperative,
(Only Municipal Utilities Serving 40,000+ customers)
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| Standard: | Investor-owned utilities: 20% by 2020
Electric cooperatives: 10% by 2020
Municipal utilities serving more than 40,000 customers: 10% by 2020 |
| Technology Minimum: | Solar-electric (IOUs only): 4% of annual requirement (0.8% of sales in 2020); half of solar-electric requirement must be located on-site at customers' facilities |
| Credit Trading: | Yes |
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Web Site: |
http://www.dora.state.co.us/
PUC/rulemaking/RenewableEnergyStandard.htm
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Authority 1:
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CRS 40-2-124
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| Date Enacted: | 11/2/2004 |
| Date Effective: | 12/1/2004 |
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Authority 2:
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4 CCR 723-3-3650 et seq.
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| Date Effective: | 7/2/2006 |
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Summary:
Colorado became the first U.S. state to create a renewable portfolio standard (RPS) by ballot initiative when voters approved Amendment 37 in November 2004. The original version of Colorado's RPS required utilities serving 40,000 or more customers to generate or purchase enough renewable energy to supply 10% of their retail electric sales. The original RPS also implemented a rebate program for customers of the state's two investor-owned utilities, Xcel Energy and Black Hills Energy (formerly Aquila). The rebate program is still in effect.
In March 2007, HB 1281 increased the RPS and extended the renewable-energy requirement to electric cooperatives, among other changes. Eligible renewable-energy resources include solar-electric energy, wind energy, geothermal-electric energy, biomass facilities that burn nontoxic plants, landfill gas, animal waste, hydropower, recycled energy,* and fuel cells using hydrogen derived from eligible renewables.
Colorado’s RPS requires each investor-owned utility to provide specific percentages of renewable energy and/or recycled energy according to the following schedule: - 3% of its retail electricity sales in Colorado for the year 2007;
- 5% of its retail electricity sales in Colorado for the years 2008-2010;
- 10% of its retail electricity sales in Colorado for the years 2011-2014;
- 15% of its retail electricity sales in Colorado for the years 2015-2019; and
- 20% of its retail electricity sales in Colorado for the year 2020 and for each following year.
For investor-owned utilities, at least 4% of the standard must be generated by solar-electric technologies. At least one-half of the solar requirement must be generated by solar-electric systems located on-site at customers’ facilities. Eligible electricity generated in Colorado is favored; each kilowatt-hour (kWh) of eligible electricity generated in-state receives 125% credit for RPS-compliance purposes. The Colorado Public Utility Commission (PUC) has issued rules to implement the RPS. The PUC's rules generally apply to investor-owned utilities.
In addition, Colorado's RPS requires all electric cooperatives and each municipal utility serving more than 40,000 customers to provide specific percentages of renewable energy and/or recycled energy according to the following schedule:- 1% of its retail electricity sales in Colorado for the years 2008-2010;
- 3% of its retail electricity sales in Colorado for the years 2011-2014;
- 6% of its retail electricity sales in Colorado for the years 2015-2019; and
- 10% of its retail electricity sales in Colorado for the year 2020 and each following year.
In the service territory of electric cooperatives and eligible municipal utilities, electricity generated at a “community-based project” -- a project not greater than 30 megawatts (MW) in capacity that is located in Colorado and owned by individual residents of a community or by nonprofits, cooperatives, local government entities or tribal councils -- receives 150% credit for RPS-compliance purposes. There is no solar requirement for electric cooperatives and eligible municipal utilities, but solar electricity generated by a facility that begins operation before July 1, 2015, receives 300% credit for RPS-compliance purposes. (Solar electricity generated by a facility that begins operation on or after July 1, 2015, receives 100% credit.) System owners may not take advantage of both the community-based project multiplier and the solar multiplier.
Tradable renewable energy credits (RECs) may be used to satisfy the standard. Utilities that do not generate the required amount of electricity from eligible renewables may purchase RECs from utilities that exceed the requirement.
* "Recycled energy" is defined as "energy produced by a generation unit with a nameplate capacity of not more than 15 megawatts (MW) that converts the otherwise lost energy from the heat from exhaust stacks or pipes to electricity and that does not combust additional fossil fuel."
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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