Renewable Portfolio Standard
Nevada's Renewable Portfolio Standard ("RPS"), NRS 704.7801, was first adopted by the Nevada Legislature in 1997 and has been modified nearly every legislative session since then. The RPS establishes the percentage of electricity sold by an electric utility to retail customers that must come from renewable sources. More specifically, electric utilities are required to generate, acquire or save with portfolio energy systems or energy efficiency measures, a certain percentage of electricity annually.
25% by 2025
The percentage of renewable energy required by the RPS will increase every two years until it reaches 25 percent in 2025. Included within the RPS is a requirement that at least 5 percent of the total renewable energy in the portfolio must be generated by solar facilities through 2015 and at least 6 percent must be generated by solar facilities beginning in 2016. In addition, the 2005 Nevada Legislature determined that energy efficiency measures can be used to comply with up to 25 percent of the annual RPS requirement. Of that 25 percent, 50 percent must come from measures installed at residential customer service locations.
Portfolio Energy Credits
The RPS is tracked through a system of portfolio energy credits ("PECs") which can be defined as a credit that is earned through energy produced or saved from a renewable energy system or energy efficiency measure. These credits are issued to any eligible renewable energy producer as defined in NRS 704.7811. These credits may be sold to electric utilities seeking to meet their RPS. For example, a renewable energy system installed at a residence (without receiving an incentive provided by one of the renewable energy programs codified in NRS Chapter 701B) is eligible to register and sell the PECs associated with the energy it generates.
Programs that Provide Portfolio Energy Credits ("PECS") for Participating Utilities
Customers who receive a rebate/incentive payment for installing a renewable energy system through one of the programs listed below must, pursuant to the law applicable to their participation in the program, assign ownership of the PECs generated by the system to the utility administering the program.
Each year, providers of electric service must submit a report to the PUCN providing evidence of their compliance with the RPS. The PUCN determines if the provider has met the requirements and, for a utility or provider of a new electric resource that fails to meet the RPS, the PUCN may impose a fine, provide an exemption or take other administrative action.
Renewable Portfolio Standard Links