Taking Stock of California's New RPS Law

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Taking Stock of California’s New RPS Law

The California Renewable Energy Resources Act (CRERA), signed by California Governor Brown on 12 April 2011, significantly increased the state's renewable portfolio standard (RPS) targets from 20% by 2010 to 33% by 2020 and expanded the compliance obligations to include virtually all retail sales of electricity in California. IHS Emerging Energy Research assesses the progress California utilities are making toward fulfilling their new requirements.

Key trends in this On Point include:

California investor-owned utilities (IOUs) are well supplied with renewables for RPS compliance through at least 2015.
Greatest near-term needs will be felt by smaller POUs and by electric service providers (ESPs).
New delivery requirements will be difficult, but not impossible, to meet.
Resolution of current uncertainties regarding incremental targets and cost containment could have significant impact on procurement patterns and compliance.