Delaware

Delaware’s renewable portfolio standard (RPS) has been altered three times since former Gov. Ruth Ann Minner signed the first RPS into law in 2005. In 2007 Delaware doubled the amount of renewable energy that investor owned utilities, municipal utilities, and rural electric cooperatives must purchase from 10 percent to 20 percent. In 2010 Delaware increased the mandate again, to 25 percent by 2025.

Qualifying renewable sources include solar, wind, ocean tidal, ocean thermal, fuel cells powered by renewable fuels, hydroelectric facilities with a maximum capacity of 30 megawatts, sustainable biomass, anaerobic digestion, and landfill gas. The mandate also contains a 3.5 percent carve out for solar energy. Municipal utilities and rural electric cooperatives may opt out of the RPS if they implement a comparable standard by 2013. Sales to large industrial customers with large kilowatt usage are exempt.

The law sets a graduated compliance schedule from 2008-2025.

Utilities may count no more than one percent of renewable energy acquired before December 31, 1997 toward the standard. In the final compliance year all renewable energy must be obtained after December 31, 1997.

Beginning in 2014 the Delaware Public Service Commission (PSC) may adjust the compliance schedule depending on energy market conditions.

Utilities may purchase Renewable Energy Credits (RECs). Energy generated from customer-sited sources may qualify as a REC if the site is located within the state. Generators of less than 100 kilowatt capacity may be aggregated for RECs. The PSC maintains authority to determine eligible sources. RECs must be used for RPS compliance within three years of purchase.

Utilities must submit annual compliance reports. Those that fail to meet the graduated benchmarks must pay an alternative compliance payment (ACP) of $25 per megawatt hour (MWh) of the shortfall. The ACP increases annually for utilities that choose to pay it. After the first year the ACP climbs to $50 per MWh, after the second year the ACP increases to $80 MWh). The ACP for the solar carve out is $500 per MWh.

The law also provides generous multiplier credits for solar, and both on shore and off shore wind.

The 2010 revisions added dollar-for-dollar cost recovery provision, and a freeze on the compliance schedule if the cost of meeting the standard exceeded three percent of total retail electricity costs, and one percent of total retail costs for the solar requirement.