New Hampshire
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 06/17/2009
| Incentive Type: |
Renewables Portfolio Standard |
| State: |
New Hampshire |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Geothermal Electric,
Hydrogen,
Anaerobic Digestion,
Small Hydroelectric,
Tidal Energy,
Wave Energy,
Ocean Thermal,
Ethanol,
Biodiesel
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| Applicable Sectors: |
Investor-Owned Utility,
Rural Electric Cooperative,
Retail Supplier,
(all electricity suppliers, except municipal suppliers)
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| Standard: | 23.8% by 2025 |
| Technology Minimum: | New Renewables (General): 16% by 2025
New Solar-Electric: 0.3% by 2014
Existing Biomass: 6.5% by 2011
Existing Small Hydro: 1% by 2009 |
| Credit Trading: | Yes |
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Authority 1:
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New Hampshire Statutes, Chapter 362-F
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| Date Enacted: | 5/11/2007 |
| Date Effective: | 7/10/2007 |
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Authority 2:
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N.H. Admin. Rules, Puc 2500
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| Date Effective: | 6/3/2008 |
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Authority 3:
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HB 229
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| Date Enacted: | 06/10/2009 |
| Date Effective: | 06/10/2009 |
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Summary:
New Hampshire’s Electric Renewable Portfolio Standard, enacted in May 2007 (HB 873), requires electricity providers to acquire renewable energy certificates (RECs) equivalent to 23.8% of retail electricity sold to end-use customers by 2025. Of the 23.8% target, 16.3% is to be derived from sources installed after January 1, 2006, whereas the remainder is to be derived from existing resources. Amendments enacted in June 2008 (HB 295) exclude municipal suppliers from the RPS requirements.
Separate portfolio standards are required for energy resources classified as "Class I," "Class II," "Class III" and "Class IV."
Class I - New Renewable Energy: electricity from any of the following, provided the source began operation after January 1, 2006:- Wind energy;
- Geothermal energy;
- Hydrogen-derived from biomass fuels, biogas, or landfill gas;
- Ocean thermal, wave, current, or tidal energy;
- Biogas or landfill gas;
- Eligible biomass technologies meeting air emissions requirements ;
- Solar electric not used to meet Class II, or customer-sited solar water heating that displaces electricity
- The incremental new production of electricity in any year from an eligible biomass, eligible methane source, or hydroelectric generating facility of any capacity, over its historical generation baseline
- The production of electricity from Class III or IV sources that have been upgraded or repowered through significant capital investment.
Class II - New Solar: electricity from solar technologies, provided the source began operation after January 1, 2006.
Class III - Existing Biomass/Methane: electricity from eligible biomass technologies having a gross nameplate capacity of 25 megawatts (MW) or less, and methane gas. The source must have begun operation prior to January 1, 2006:
Class IV - Existing Small Hydroelectric: electricity from hydroelectric energy, provided the facility began operation prior to January 1, 2006, has a total nameplate capacity of 5 MW or less, and meets other environmental protection criteria.
Electric providers must meet the standard according to the following compliance schedule:
2008 2009 2010 2011 2012 2013 2014 2015 2025
Class I 0.0% 0.5% 1% 2% 3% 4% 5% 6% 16%(*)
Class II 0.0% 0.0% 0.04% 0.08% 0.15% 0.2% 0.3% 0.3% 0.3%
Class III 3.5% 4.5% 5.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5%
Class IV 0.5% 1% 1% 1% 1% 1% 1% 1% 1%
* Class I increases an additional one percent per year from 2015 through 2025. Classes II, III and IV remain at the same percentages from 2015 through 2025. Provisions for exceptions and delays are described below.
The New Hampshire Public Utilities Commission (PUC) has established a renewable energy certificate (REC) program utilizing the regional generation information system (GIS) of energy certificates administered by ISO-New England and the New England Power Pool (NEPOOL). RECs from customer-sited sources are assigned to the system owner, and behind-the-meter generation located in New Hampshire is eligible to participate in the RPS. Unused RECs from the prior two years, or RECs from the first quarter of a subsequent year, may be used to meet up to 30% of a given year's compliance targets. Electric utilities may request to enter into multi-year contracts for RECs or electricity bundled with RECs to meet the RPS. Rural electric cooperatives may enter into multi-year contracts without approval from the PUC. Note that the PUC has established a method to measure electricity displaced by solar water-heating systems.
To be eligible for RPS compliance, renewable energy generators must be within the New England control area, unless the source is located in a control area adjacent to the New England control area and the energy produced by the source is actually delivered into the New England control area for consumption by New England customers.
Compliance reports are due to the PUC by July 1 of each year from each electricity provider. In lieu of meeting the portfolio requirements, an electricity provider may make payments to a new renewable energy fund established by this law to support renewable energy initiatives. Class II moneys will only be used to support solar energy technologies in New Hampshire. The 2009 rates for each megawatt-hour not met for a given class obligation through the acquisition of certificates are as follows:- Class I - $60.92
- Class II - $159.98
- Class III - $29.87
- Class IV - $29.87
The PUC will adjust these rates by January 31 of each year using the federal Consumer Price Index.
Default service providers are authorized to recover prudently incurred costs of the RPS from the ratepayers. The PUC is authorized to fine suppliers that violate RPS requirements, revoke their registration, or prevent them from doing business in the state.
The PUC may accelerate or delay by up to one year, any given year’s incremental increase in Class I or II RPS requirement for good cause, and after notice and hearing. In addition, after notice and hearing, the commission may modify the Class III and IV requirements for calendar years beginning January 1, 2012, such that the requirements are equal to an amount between 85% and 95% of the reasonably expected potential annual output of available eligible sources after taking into account demand from similar programs in other states.
The PUC must conduct a review of the RPS program and report of its findings to the legislature in 2011, 2018 and 2025, including any recommendations for changes to the class requirements or other aspects of the electric renewable portfolio standard program. In addition, the New Hampshire Office of Energy and Planning, in consultation with the state Energy Planning Advisory Board, is directed to study, evaluate, and make recommendations including potential legislation related to a thermal renewable portfolio standard and other incentives or mechanisms to promote thermal renewable energy use.
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