Bottom Line on Renewable Electricity Standards
Summary
The document defines Renewable Electricity Standards (RES) as policies requiring a minimum percentage of electric power to come from eligible renewable sources. It details how these standards create market demand for clean energy, the types of eligible resources, and the potential for business opportunities through the sale of electricity or renewable energy credits (RECs). The text also outlines the state-level adoption of RES in the U.S. as of 2008 and discusses the legislative history and arguments surrounding a proposed national RES.
Key insights
- A Renewable Electricity Standard (RES), also known as a Renewable Portfolio Standard (RPS), mandates that a specific minimum amount or percentage of electricity generation be sourced from eligible renewable energy by a set date. Compliance is typically achieved by retail electric power suppliers purchasing power directly from renewable generators or buying renewable energy credits (RECs).
- Eligible energy resources for RES compliance generally include wind, solar electric, solar thermal, geothermal, and landfill gas, while biomass is typically eligible if it meets environmental qualifications. Fossil fuels and nuclear power are almost never eligible, though Pennsylvania is noted as an exception for including waste coal and integrated coal gasification combined cycle technologies.
- RES policies can create revenue streams for the business community, as suppliers may purchase electricity or RECs from commercial, industrial, and residential generators who have installed qualifying technologies like wind turbines or solar photovoltaic systems.
- As of April 2008, 25 U.S. states and the District of Columbia had implemented RES policies, with six additional states setting non-binding goals. Some states use 'carve-outs' to ensure minimum demand for specific technologies; for instance, New Jersey required 2.12 percent of generation to come from solar by 2020, and North Carolina included requirements for swine and poultry waste.
- The U.S. Congress has repeatedly considered a national RES, with the Senate voting for a 10 percent standard in the 108th and 109th Congress and the House passing a 15 percent standard in the 110th Congress, though none became law. Arguments against a national standard include the fact that nearly half of the U.S. retail load is already under state-level RES and the belief that states should design policies based on local resources.
Cite the original document
- APA
- World Resources Institute (n.d.). Bottom Line on Renewable Electricity Standards. https://www.wri.org/research/bottom-line-renewable-electricity-standards
- Chicago
- World Resources Institute. Bottom Line on Renewable Electricity Standards. n.d. https://www.wri.org/research/bottom-line-renewable-electricity-standards.
- Wikipedia
- {{cite report |author=World Resources Institute |title=Bottom Line on Renewable Electricity Standards |url=https://www.wri.org/research/bottom-line-renewable-electricity-standards |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldresourcesinstitutendbottom, author = {{World Resources Institute}}, title = {{Bottom Line on Renewable Electricity Standards}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/bottom-line-renewable-electricity-standards}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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