Politics 101: What is Texas Renewable Portfolio Standard?

September 30, 12:07 PMDallas Environmental Policy ExaminerCaroline Calais

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(AP Photo/Harry Cabluck)

A Renewable Portfolio Standard (RPS) was introduced in 1999 as part of a reform that changed Texas’ electricity market (Senate Bill 7). The RPS mandated municipal, cooperative, and competitive electricity providers to collectively produce 2,000 megawatts (MW) of renewable energy by 2009. Qualifying energy sources were solar, wind, geothermal, hydroelectric, tidal energy, biomass, and landfill gas.

The 10-year renewable energy goal was met in just six years, and in 2005 the Texas Legislature expanded the legislation. Senate Bill 20 increased the state’s RPS goal to 5,880 megawatts (MW) by 2015, and stipulated that 500 MW must come from non-wind resources. The legislation also set a goal of 10,000 megawatts (MW) in renewable energy capacity by 2025.

The RPS also provides for a Renewable Energy Credit (REC) trading program. The program enables electricity providers that do not own or purchase enough renewable energy capacity to purchase credits from other utilities. The program will continue through 2019.

The Texas Renewable Portfolio Standard continues to be one of the most effective in the U.S, and Texas is the number one wind energy producer in the nation, and the number six wind energy producer in the world.