How to Build Clean Energy Portfolios

This guide by RMI provides a framework for updating electricity resource procurement processes for vertically integrated utilities in the US. It advocates for 'all-source', 'objective-aligned', and 'least-regrets' procurement to optimize the deployment of clean energy and distributed energy resources (DERs) during a period of significant projected investment.

• The US power sector faces a massive investment period between 2020 and 2030, with vertically integrated utilities (VIUs) projected to require at least 420 GW of resource procurement. The estimated capital expenditure for this deployment ranges from $420 billion for low-capital cost technologies to over $750 billion for higher-capital cost clean energy portfolios.
• RMI proposes three core principles for next-generation procurement: 'All-Source' to capture the interaction between utility-scale and distributed energy resources; 'Objective-aligned' to address specific values like decarbonization and resilience; and 'Least-regrets' to minimize costs by leveraging competition and falling technology prices.
• To improve procurement outcomes, legislators and regulators are encouraged to mandate competitive, all-source solicitations and ensure that distributed energy resources (DERs), such as energy efficiency, are adequately incentivized and integrated into the planning process.
• Effective procurement requires a transparent, validated 'statement of needs' that describes system requirements in terms of energy, capacity, or flexibility, rather than specifying a particular resource. RMI notes that Xcel Energy in Colorado used a solution-agnostic needs description in 2017 to achieve record-low bid prices for hybrid and renewable resources.
• The guide emphasizes the importance of using independent third-party evaluators to supervise utility bid evaluations. This ensures that the process follows published criteria and prevents incumbent utilities or their affiliates from having an unfair competitive advantage.
• The document identifies specific regional opportunities for resource procurement through 2030, with the highest potential in the Southeast (156.3 GW) and Midwest (122.4 GW), followed by the Northeast (51.5 GW), Southwest (31.9 GW), Texas (27.4 GW), West (23.5 GW), and Northcentral (11.2 GW).

APA

RMI (2021). How to Build Clean Energy Portfolios. https://rmi.org/resources/how-to-build-ceps/

Chicago

RMI. How to Build Clean Energy Portfolios. 2021. https://rmi.org/resources/how-to-build-ceps/.

Wikipedia

{{cite report |author=RMI |title=How to Build Clean Energy Portfolios |date=10 March 2021 |url=https://rmi.org/resources/how-to-build-ceps/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2021how, author = {{RMI}}, title = {{How to Build Clean Energy Portfolios}}, institution = {RMI}, year = {2021}, month = mar, url = {https://rmi.org/resources/how-to-build-ceps/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }