ABSTRACT
The renewables portfolio standard (RPS) – a policy instrument that ensures that a minimum amount of renewable energy is included in the portfolio of electricity resources – has become increasingly popular in energy policy and research circles worldwide. The concept of an RPS is deceptively simple: it is a requirement for retail electricity suppliers (or, alternatively, electricity generators or consumers) to source a minimum percentage of their electricity needs from eligible renewable resources. To add flexibility and reduce the cost of meeting the requirement, tradeable renewable energy certificates (REC) can be used to track and verify compliance.
