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Renewable Portfolio Standard (RPS)

A Renewable Portfolio Standard (RPS) is a regulatory mandate designed to increase the production of energy from renewable sources such as wind, solar, biomass, and geothermal. This policy requires that utilities or electricity providers ensure that a specified percentage of the power they supply to consumers comes from renewable resources. By setting clear and enforceable targets, an RPS aims to reduce greenhouse gas emissions, promote clean energy innovation, and stimulate economic growth within the green economy.

RPS policies vary by region but generally include compliance mechanisms like renewable energy credits (RECs), which allow utilities to prove they've met the required quotas. These credits can often be traded, sold, or banked, providing a flexible means of compliance while incentivizing the development of renewable energy infrastructure.

Implementing a Renewable Portfolio Standard can also result in numerous benefits including improved air quality, enhanced energy security, and the creation of green jobs. By mandating a shift toward renewable energy sources, RPS policies play a crucial role in the broader strategy to combat climate change and transition to a sustainable energy future.