June 1, 2015 | By Jaclyn Brandt

Wind capacity in the United States has grown exponentially in the last few decades, in large part because of numerous states adopting a Renewable Portfolio Standard (RPS), but it wasn't easy. 

Wind farm in Goldendale, Washington. Credit: Wsiegmund/Wikimedia Commons

Susan Williams Sloan, vice president of State Policy with the American Wind Energy Association (AWEA), explained to FierceEnergy that at the time there was a lot of debate about cost and whether or not renewables could be reliably integrated into the grid. 

"Those were all major parts of the conversation back then when there was next to nothing renewable on the grid. What has been interesting is we continue to surpass what was contemplated back then in some states," she said. "There were a lot of states that were looking at energy policy and considering what they wanted going forward. There were new technologies that were clearly advancing and became available. They took it up with their own RPS and energy policy that would work for what the actions were in the state.

Further, each time an RPS was passed, the state legislature set a minimum amount of time they would extend -- whether it be five, 10, 20, or more, years. As many of those dates are coming up, the legislatures are reconsidering whether the RPS has worked, and whether they are still needed in their respective states. 

The end of the RPS?

"We are well above what anyone imagined back then."

In recent months, numerous states have been debating the RPS -- and many have called into question the need for a renewable standard if they have already achieved their renewable energy goal. For example, the Texas Senate voted to eliminate their RPS in April, which AWEA says could have a catastrophic effect in the state.

The Texas RPS began in 1999 with a goal of 2,000 MW of renewable energy, and increased to 10,000 MW, to be met by 2025. But Texas passed that goal far ahead of schedule, and now has nearly 13,000 MW of renewable energy operational in the state.

The RPS was first introduced by Sen. Troy Fraser 16 years ago, and the bill to eliminate it was also introduced by Sen. Fraser.

"Mission accomplished. We set out to incentivize and get wind started in Texas, and we far surpassed that goal," Sen. Fraser told the Dallas News in April. "There's no state that's come close to what we've done."

But Sloan said that kind of thinking is dangerous, and explained, "If a state is going to send a message having to do with 'we're done with renewables,' some of the companies that are looking at Texas and liking Texas because it's a renewable energy state could think twice."

"That was a deal that was struck back when that legislation was passed," Sloan added. "Contracts were put in place according to the laws on the books, and those contracts are still in place. The requirement has been matched but some of the contracts that were written were written with that law in place. Repealing that law will put those contracts into question and there is no reason to break the deal, there is no problem with the RPS and the way it is working. It has brought a myriad of value to the state."

AWEA, not surprisingly, doesn't think the Texas RPS should be repealed, due to what they say are the catastrophic effects it could have across the state -- and across the region.

Not all "doom and gloom"

But Raymond Heyman, energy and utilities attorney at Snell & Wilmer in Phoenix, told FierceEnergy that the elimination of an RPS doesn't have to be catastrophic, depending on the situation. He explained that the idea of the RPS in the beginning was to tell utilities they needed to diversify their portfolios, to move away from fossil fuels -- as well as providing programs and incentives for renewable energy. 

"You are seeing some of those standards pulled back, not because they aren't good standards but because they were achieving the standards."

He said, "In some of the jurisdictions it's gone over very well and there has been a good use and implementation of renewable energy -- and you are seeing some of those standards pulled back, not because they aren't good standards but because they were achieving the standards."

Heyman believes that renewables aren't so fragile that removing an RPS will slow their progress, because it is up to the utilities to decide what the future of renewables will be. He explained that what will be important in the future is to see what will replace the RPS. It may affect some companies, but only if they're not willing to adapt to change.

"The technology of renewable energy is here to stay and the business models that are being used have to be flexible," he said, adding that utilities need to be aware of changing circumstances, as well as the "need to be looking at doing the right thing."

"They are charged with providing safe, reliable and economic utility service to their customers," he explained. "And renewable technology becomes viable and available and economic. Utility companies need to make adjustments, and as those changes come about they should be aware of them and integrating them into their resource planning systems as well."

Is policy the only path to growth?

AWEA feels that it is up to government policy to continue the growth of renewables. Andrew Gohn, director of Eastern State Policy with AWEA, explained to FierceEnergy that with stable policy, wind can improve technology, lower costs, and continue on the path of growth.

"If the RPSes go away, something is going to replace them, whether its customer need, legislation, [or] just the marketplace. It's an industry that can work out its problems."

"Wind could be one of the leading sources of electricity we could see by 2050 while creating a tremendous amount of job opportunities," said Gohn. "As we have seen in the past, unstable policy can hinder that growth. Moving forward, having that longterm stable policy in place is critical for the industry to stay on the path of abundant growth."

Heyman doesn't believe the removal of the RPS is "doom and gloom," but does think the industry needs to be flexible and adaptable to any evolution it takes. It's important for a utility to keep open communication with their stakeholders -- regulators, legislators, customers, and the renewable industry -- which will help them figure out what will replace RPSs if they end up going away. 

"If the RPSes go away, something is going to replace them, whether its customer need, whether its legislation, whether its just the market place telling them," he said. "It's an industry that can work out its problems and it can make sure that it's meeting its mandate and providing reliable and safe and economic service for its customers. Renewable energy is definitely a part of that."

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http://www.fierceenergy.com/story/does-end-rps-spell-catastrophe-state-renewable-energy/2015-06-01