Policy
A Renewable Portfolio Standard (RPS) is a policy that requires electricity providers (usually utilities) to supply a certain percentage or amount of their power from renewable sources by a specified date. Set by state or national law, an RPS creates a steady demand for renewable energy. Utilities can meet the targets by generating renewable power themselves or by purchasing Renewable Energy Certificates (RECs) from others who do. For instance, an RPS might mandate 30% renewable electricity by 2030. This policy mechanism has been a significant driver of solar, wind, and other clean energy development, as it guarantees a market for renewables and often imposes penalties for non-compliance. Some regions have variations like Clean Energy Standards or Renewable Obligations, but the principle is to steadily increase the share of clean energy in the grid mix.