Rhode Island
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 07/17/2009
| Incentive Type: |
Renewables Portfolio Standard |
| State: |
Rhode Island |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Anaerobic Digestion,
Tidal Energy,
Wave Energy,
Ocean Thermal,
Biodiesel,
Fuel Cells using Renewable Fuels
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| Applicable Sectors: |
Investor-Owned Utility,
Retail Supplier
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| Standard: | 16% by 2019 |
| Technology Minimum: | No |
| Credit Trading: | Yes |
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Web Site: |
http://www.ripuc.org/utilityinfo/res.html
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Authority 1:
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R.I. Gen. Laws § 39-26-1 et seq.
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| Date Enacted: | 6/29/2004 |
| Date Effective: | 6/29/2004 |
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Authority 2:
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CRIR 90-060-015
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| Date Effective: | 7/25/2007 |
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Authority 3:
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H5002Aam
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| Date Enacted: | 06/26/2009 |
| Date Effective: | 07/01/2010 |
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Summary:
Rhode Island's Renewable Energy Standard (RES), enacted in June 2004, requires the state's retail electricity providers -- including non-regulated power producers and distribution companies -- to supply 16% of their retail electricity sales from renewable resources by the end of 2019. The requirement begins at 3% by the end of 2007, and then increases an additional 0.5% per year through 2010, an additional 1% per year from 2011 through 2014, and an additional 1.5% per year from 2015 through 2019.* In 2020, and in each year thereafter, the minimum RES established in 2019 must be maintained unless the Rhode Island Public Utilities Commission (PUC) determines that the standard is no longer necessary.
Eligible renewable-energy resources include:- Direct solar radiation
- Wind
- Movement or the latent heat of the ocean
- The earth's heat
- Hydroelectric facilities not greater than 30 megawatts (MW) in capacity
- Biomass facilities using eligible biomass fuels and maintaining compliance with current air permits; eligible biomass fuels may be co-fired with fossil fuels, provided that only the renewable-energy portion of production from multi-fuel facilities will be considered eligible
- Fuel cells using renewable resources
For each obligated entity and in each compliance year, and for the purposes of meeting the RES, the amount of retail electricity sales derived from eligible renewable energy resources initially placed into commercial operation before December 31, 1997, may not exceed 2% of total retail electricity sales. Compliance with the RES may also be achieved through the purchase of New England Power Pool Generation Information System (NEPOOL GIS) certificates or by making an alternative compliance payment of $60.92/MWh (2009) to the state's Renewable Energy Development Fund. Voluntary green-power purchases may not be counted toward RES compliance. Rhode Island's 2007 RES Compliance report is available here.
The legislation that created Rhode Island's RES directed the Rhode Island State Energy Office to maximize the combined impact and efficiency of the Rhode Island Renewable Energy Fund (RIREF) and the RPS. Legislation (H.B. 7806) enacted in July 2008 authorized the Rhode Island Economic Development Corporation to integrate and coordinate the state's renewable-energy policies more effectively.
A separate and distinct standard was enacted in June 2009 (S0111 and identical bill H5002) that will require electric distribution companies to solicit proposals and enter into long-term contracts for capacity, energy, and attributes from new (not yet operational) renewable energy facilities. Electric distribution companies will be required to enter into long-term contracts for 90 MW in capacity, of which 3 MW must be solar, in-state generation by 2014. The distribution companies will be required to meet the following annual benchmarks, provided acceptable, commercially reasonable proposals have been received:- 22.5 MW contracted by 12/30/2010 (25% of the total required amount)
- 45 MW contracted by 12/30/2011 (50% of the total required amount)
- 67.5 MW contracted by 12/30/2012 (75% of the total required amount), and
- 90 MW contracted by 12/30/2013 (100% of the requirement).
The electric distribution companies need to submit their solicitation methodology to the PUC for approval. Each long-term contract must be reviewed and approved by the PUC before it is considered effective. All energy and capacity purchased must be immediately sold by the electric distribution utility into the wholesale sport market. Or, with commission approval, the distribution company may resell the energy and capacity to customers. The NEPOOL-GIS certificates purchased under the long-term contract shall be sold through a competitive bid process, or with commission approval, the certificates may be used to meet the distribution company's RES obligations.
* On or around January 1, 2010, the Rhode Island PUC must open a docket to determine the adequacy, or potential adequacy, of renewable energy supplies to meet the increase in the percentage requirement of energy from renewable energy resources to go into effect in 2011. RES increases in 2011 and thereafter are subject to the PUC's findings.
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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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