Vermont state utilities must reach 75% renewable sources target by 2032
July 5, 2016 | By
April Nowicki
Vermont utilities will obtain 75 percent of electricity sold to customers from renewable sources by 2032, according to an order (PDF) for a renewable energy standard that the Vermont Public Service Board approved last week. The standard requires Vermont utilities to procure 55 percent of the electricity sold to customers from renewable sources in 2017, a requirement that will increase to 75 percent by 2032. At least 1 percent of those amounts must come from new, distributed renewable generators, such as net-metering systems, rising to 10 percent by 2032. The program is the first of its kind in the U.S. that allows utilities to meet renewable portfolio requirements by investing in "energy transformation" projects that reduce customer use of fossil fuels. Such projects directly reduce fossil-fuel consumption using methods such as weatherization, installation of cold-climate heat pumps and clean vehicle technologies. To meet the requirements of this category, utilities must demonstrate fossil-fuel savings equivalent to 2 percent of their annual retail sales or procure an equal amount of additional renewable generation. This amount will increase to 12 percent by 2032. The implementation of the renewable energy standard will go into effect on Jan. 1, 2017. Vermont Governor Pete Shumlin originally signed legislation for the standard last year, setting a goal to create 1,000 new jobs. The standard is projected to save Vermonters $390 million on energy costs and helping the state combat climate change by putting it on track to achieve a quarter of its greenhouse gas emissions reduction targets. The goal aims to use a mix of solar, wind and hydropower for electricity generation, and was based on recommendations by the state's Solar Siting Task Force, which was created in June of last year. The task force is responsible for studying the design, siting and regulatory review of solar electric generation facilities and providing reports in the form of proposed legislation. For more: © 2016 FierceMarkets, a division of Questex, LLC. All rights reserved. |