Virginia
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 04/03/2009
| Incentive Type: |
Renewables Portfolio Standard |
| State: |
Virginia |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Energy from Waste,
Anaerobic Digestion,
Tidal Energy,
Wave Energy
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| Applicable Sectors: |
Investor-Owned Utility
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| Standard: | Goal: 15% of base year (2007) sales by 2025 |
| Technology Minimum: | No |
| Credit Trading: | Yes |
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Authority 1:
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Va. Code § 56-585.2
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| Date Enacted: | 4/11/2007 |
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Authority 2:
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HB 1994
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| Date Enacted: | 03/30/2009 |
| Date Effective: | 07/01/2009 |
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Summary:
As part of legislation to re-regulate the state's electricity industry, Virginia enacted a voluntary renewable energy portfolio goal in 2007. Legislation passed in 2009 (HB 1994) expanded the goal. Under the goal, investor-owned utilities are encouraged to procure a percentage of the power sold in Virginia from eligible renewable energy sources. In addition to allowing for RPS program cost recovery to participating utilities, the Virginia State Corporation Commission (SCC) will provide a performance incentive in the form of an increased rate of return (profit) for each “RPS Goal” attained.
The RPS targets are defined as percentages of the amount of electricity sold in 2007 (the "base year"), minus the average annual percentage of power supplied from nuclear generators between 2004 and 2006.
The RPS schedule is as follows:- RPS Goal I: 4% of base year sales in 2010
- RPS Goal II: Average of 4% of base year sales in 2011 through 2015, and 7% of base year sales in 2016
- RPS Goal III: Average of 7% of base year sales in 2017 through 2021, and 12% of base year sales in 2022
- RPS Goal IV: Average of 12% of base year sales in 2023 and 2024, and 15% of base year sales in 2025
Investor-owned incumbent electric utilities can gain approval to participate in the voluntary RPS program from the SCC if the utility demonstrates that it has a reasonable expectation of achieving the 12% target in 2022.
Eligible energy resources include solar, wind, geothermal, hydropower, wave, tidal, and biomass energy. Hydropower excludes pumped storage, and the amount of wood derived from trees that would be otherwise used by Virginia lumber and pulp manufacturers is capped at 1.5 million tons annually. Wind and solar power receive a double credit toward RPS goals. Electricity must be generated or purchased in Virginia or in the interconnection region of the regional transmission entity. Existing renewable energy generators are eligible for RPS compliance.
Each investor-owned electric utility must report to the Commission annually by November 1st on its efforts, if any, to meet the RPS Goals, its overall generation of renewable energy, and any advances in renewable generation technology.
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Contact:
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Ken Jurman
Virginia Department of Mines, Minerals, and Energy
Virginia Division of Energy
Washington Building
1100 Bank Street, 8th floor
Richmond, VA 23219-3638
Phone: (804) 692-3218
Fax: (804) 692-3238
Web Site: http://www.mme.state.va.us/de
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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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