Issue link: https://nebusinessmedia.uberflip.com/i/515487
12 CONNECTICUT GREEN GUIDE • SUMMER 2015 www.CTGreenGuide.com Regional Approach CT needs other states to achieve renewable energy goals By Brad Mondschein O n Feb. 25, Gov. Dannel P. Malloy launched a tri-state initiative to bolster renewable energy development in Massachusetts, Rhode Island, and Connecticut. As part of the initiative, the three states will solicit bids on at least 20 megawatts of new Class I renewable energy projects, which include wind, solar, hydroelectric, biomass, and fuel cells. These new projects are needed to satisfy the ever growing demand for Class I renewable energy here in Connecticut and in other New England states. This demand stems from require- ments placed on electric suppliers to obtain an increas- ing percentage of their power from Class I resources under the renewable portfolio standard (RPS). This year, in Connecticut, 12.5 percent of the total electric supply must be from Class I renewables, and by 2020, that percentage will increase to 20 percent. While these goals are certainly lofty, doubts on their achiev- ability linger, given the shortage of renewable energy in the market today. Electric suppliers demonstrate their compliance with the RPS by purchasing renewable energy credits (RECs) from renewable energy projects throughout New England. The cost of purchasing RECs in New England has skyrock - eted in recent years, reaching almost $60 per megawatt hour (or six cents per kilowatt hour) because of the height- ened demand for RECs caused by increasing RPS require- ments in Connecticut and in other New England states. In fact, in 2014, nearly all electric suppliers in Con- necticut failed to purchase a sufficient amount of RECs to meet the RPS and, instead, opted to pay a penalty known as an alternative compliance payment (ACP) because the penalty was less costly ($55 per mega- watt hour) than purchasing the RECs. While the ACP is directed at the local utility companies to offset other ratepayer costs, it fails to achieve the ultimate objective of the RPS — the development of renewable energy. The tri-state proposal is intended to provide more RECs The five-megawatt solar farm in Somers is one of three major, in-state renewable projects Connecticut was able to get built. PHOTOS | HBJ FILE