Renewable Portfolio Standards (RPS) have been fundamental to jump-starting the renewable energy (RE) industry, accounting for over 60% of the growth in RE generation since 2000. However, the simple MWhbased approach used by traditional RPS policies does not differentiate between each renewable MWh based on its value to the grid or for reducing fuel consumption. Already some states are experiencing challenges as renewable energy production during certain times is beginning to provide diminished value in terms of reduced fuel consumption or capacity contribution. As states continue to achieve their RPS
goals and reach increasingly higher levels of RE penetration, new approaches will likely be needed to guard against diminishing returns of a simple MWh based approach.