ABA Renewable Energy Teleconference

Meeting Expectations? An Overview of Implementation

Experiences Under Renewable Portfolio Standard (RPS)

Programs

November 16, 2005Lew Milford

Clean Energy Group

Clean Energy Group & Clean Energy States Alliance

CEG is a US-based, NGO that works to accelerate commercialization of clean energy technologies through:

Advocacy & Education Funds Support Technology Innovation New Financial Vehicles

CESA is multi-state coalition of clean energy funds, managed by CEG, working together to develop & promote clean energy technologies through:

Information Exchange & Analysis Partnership Development Joint Projects

RPS: 21 States & DC and counting

Slide courtesy of:

52 GW Renewables by 2020

Slide courtesy of:

$53 Billion Estimated Investment

Slide courtesy of:

RPS Implementation Issues

There are at least four types of implementation issues relevant to compliance and success.

Structural: internal compliance issues

Regional Markets: state v. larger markets

Design Complexity: barriers to success

Lack of coordination: can we harmonize market?

1. Structural RPS Issues

Technology Eligibility: loose or strict?

Cost cap provisions: balance of consumer cost exposure v. market power of suppliers

Technology allocations: how will set-asides be achieved; need for more attention?

Technology diversity: how well do RPS laws achieve portfolio of technologies?

Long-term contracts: many models, few solutions.

Use of ACPs: purpose and risks.

2. Regional Markets & Infrastructure

Trading barriers: are there real regional RECs markets?

RECs price instability: market fragmentation and supply

Little coordination: Balkananized market

State v. national markets: what happens if there is a national RPS?

3. Design Simplicity: Working to Scale

CA Case Study: See Wiser, et. al. August 2005 Report – “Does it have to be this Hard?...”

Anticipating Scale: wait and see from investors

Project Approvals: are project-by-project reviews consistent with scale required?

4. Lack of Coordination: RPS Implementation Working Group

New multi-party effort: CESA, NCSL, NASEO, NARUC, EPA

Participation of NGOs

Likely regional efforts

Scope: internal and cross-border problems

Consensus around barriers to regional growth

Identify possible regulatory, other solutions

Contact Information

Lewis MilfordClean Energy Groupwww.cleanegroup.org

LMilford@cleanegroup.org(802) 223-2554