Renewable energy is the future, and there’s a growing trend in the industry towards RPS partnerships. RPS stands for Renewable Portfolio Standards. These are regulations that require utility companies to obtain a percentage of their electricity from renewable sources. These goals vary by state, but on average, most states require 10-20% of their electricity to be from renewable sources by 2020.
Many utility companies are struggling to meet these goals, which is where RPS partnerships come in. By partnering with other companies or organizations that generate renewable energy, utilities can meet their RPS goals more easily and cost-effectively. Here are a few reasons why RPS partnerships are the future of renewable energy.
One of the most significant advantages of RPS partnerships is the reduced cost of meeting renewable energy requirements. For example, let’s say a utility company needs to generate 20% of its electricity from renewable sources, but currently only generates 10%. Rather than building new wind or solar farms to meet the 20% goal, the utility can partner with an organization that already generates renewable energy. This partnership allows the utility to purchase renewable energy credits (RECs) from the partner organization, which count towards their RPS goal. These credits are often less expensive than building new renewable energy facilities, making RPS partnerships a cost-effective way to meet goals.
Increased Renewable Energy Generation
RPS partnerships also help increase the amount of renewable energy generation. As utility companies partner with organizations and companies, these entities have more ways to generate renewable energy. This increased generation helps move the needle towards a more sustainable future. Without partnerships, utility companies would have to rely solely on their renewable energy facilities, which can be cost-prohibitive.
Utility companies often prefer RPS partnerships because they offer more flexibility. Rather than investing in expensive renewable energy projects, they can partner with existing projects that are already generating renewable energy. This means they can more easily meet their RPS goals without taking on additional risks. Additionally, these partnerships can provide more flexibility in the long term, allowing utility companies to shift their energy generation sources as needed.
The Bottom Line
RPS partnerships are the future of the renewable energy industry. Not only can they help utility companies meet their RPS goals more effectively and cost-efficiently, but they also help increase renewable energy generation and offer more flexibility. With a growing focus on sustainability, RPS partnerships are expected to become more common in the years to come. By working together, utility companies, organizations, and companies can make a significant impact on the environment and help create a cleaner, greener future.