When reading today’s assignment a major theme throughout the chapter was the place of Renewable Portfolio Standards in development or greater reliance on renewable energy sources. It was shocking to me that at present, renewable resources other than hydropower only account for a little less than 4% of the nation’s entire electricity. This does not seem like a balanced approach to solving our nation’s problems of energy independence and its “addiction” to fossil fuels. Ultimately, it does not seem to make sense entangle the United States in foreign affairs with countries that do not like us, depend on dirty energy, and rely on the same sources until these resources have become depleted.
At some point, there will need to be a transition to other types of energy; energy that is environmentally friendly and cannot be depleted as other natural resources. Instead of waiting until the world lurches to a halt because all of the oil has been sucked up the industrial and post-industrialized nations, these alternative types of energy resources and ways of capturing and developing these powers should be harnessed and developed now. Of course, the markets help dictate this. Perhaps at this time in the energy paradigm there is not the economic impetus to go forward with investing and developing such technology as solar, wind, geothermal/subterranean, and alcohol fuel/power. But when? Will the market be able to react fast enough to avert catastrophe at the culmination of fossil fuels? Why even take the risk.
This in part, is Renewable Portfolio Standards (RPS) come into play. RPS are state mandates that require specific percentages of all power sold by electricity retailers operating in a state to be derived from renewable power sources such as wind, solar, biomass, etc. Looking at the RPS map Figure 11-1, it is heartening that 29 states have enacted some type of RPS requirements system.
There are numerous benefits to having an RPS system. Among the benefits include environmental improvement. Under this broad benefit the EPA has stated the state RPS work to mitigate global climate change, combats habitat destruction and desecration as well as works to preserve natural resources for future generations. Another fundamental dynamic of relying RPS is that it leads to increased energy diversity. Instead of relying on fossil fuels from the volatile Middle East as one the main sources of energy in this county, RPS help develop local and state energy infrastructure and contribute to creating high paying green jobs that cannot be outsourced.
Of course, there are drawbacks. Some states are averse to the RPS programs because they infringe upon the state’s sovereignty and the ability to regulate its own energy markets. Still, other states that perhaps would like to develop RPS systems are ill equipped due to lack of funding, manpower or a dearth of natural and renewable resources that could be cultivated for energy production.
For those who envision market based problems concerning RPS, the book mentions the development or Renewable Energy Certificates, relatively new market instruments “created by separating the ‘attributes’ of renewable electricity generation from the physical electricity produced, thus making RECs a tradable commodity separate from the actual electrons.” Thus, the RECs could be sold on the marketplace as credits to comply with state environmental regulations.
In concluding, the development of state run RPS programs appears to be a step in the right direction toward cleaner technology, energy independence, and local control. These programs seem to best run by the states themselves and it does not appear that it should be the province of the federal government to come in and regulate the intrastate markets of the respective states. The leaders of each state should now how best to utilize and develop the renewable resources and manpower in a way that is efficient and beneficial for its own polity.
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