What is the main purpose of establishing a Renewable Portfolio Standard (RPS)?

The main purpose of establishing a Renewable Portfolio Standard (RPS) is to increase the production and use of electricity from renewable energy sources, such as solar, wind, geothermal, and biomass. A Renewable Portfolio Standard (RPS) is a regulatory mandate that requires electricity providers (e.g., utilities) to supply a minimum percentage of their electricity from eligible renewable energy resources. The RPS is designed to promote the deployment of renewable energy technologies by creating a market for renewable electricity. By setting a specific target for renewable energy generation, the RPS provides a clear signal to electricity providers and investors, encouraging them to invest in renewable energy projects. Electricity providers can comply with the RPS by either generating their own renewable electricity or purchasing Renewable Energy Certificates (RECs) from renewable energy generators. RECs represent the environmental attributes of renewable electricity generation. The RPS helps to diversify the electricity supply, reduce reliance on fossil fuels, and decrease greenhouse gas emissions from the electricity sector. It also stimulates economic development in the renewable energy industry and creates jobs. The specific design of an RPS can vary, including the target percentage of renewable electricity, the definition of eligible renewable energy resources, and the mechanisms for compliance.