Governance & Policy

Renewable Portfolio Standard (RPS)

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Definition

A renewable portfolio standard is a regulation requiring electricity suppliers to source a specified, typically rising, percentage of their electricity from eligible renewable resources by set dates. Compliance is demonstrated with renewable energy certificates, creating a tradable market for the renewable attribute. Most US states have adopted an RPS or clean energy standard, with several now mandating 100% clean electricity by mid-century.

References

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This reference provides supporting context for how “Renewable Portfolio Standard (RPS)” is defined and used.

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Source imported for editorial provenance.

Overview

How it is used

The instrument structures US state-level renewable deployment and certificate markets; equivalents exist internationally (UK Renewables Obligation, various quota systems).

Why it matters

RPS demonstrates the power of quantity mandates: setting the destination and letting the market find the cheapest path there.