Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS) is a policy that requires utility companies to include a specific percentage of renewable energy—like wind, solar, or hydropower—in the electricity they supply to customers. The goal is to encourage the use of cleaner energy sources, reduce greenhouse gas emissions, and promote sustainable energy development. Utilities can meet these requirements by producing renewable energy themselves or purchasing it from producers. RPS programs often set progressively higher targets over time to support the transition toward a greener energy system.