The jurisdiction and describe how electricity service providers must

The market for renewable energy in
the USA comprises two types of demand, one of compliance market and another voluntary.

In USA, the states’ policies known as Renewable Portfolio Standards (RSP), demand
utilities to supply a fraction of their electricity from renewable sources. (Environmental Protection Agency, 2010) Each state sets
independently, the energy resources eligible in their jurisdiction and describe
how electricity service providers must comply. As an option for obligated entities
to comply with their obligations utilities are allowed to use Renewable Energy
Certificates (RECs). Meanwhile, the consumers’ preference is the factor driving
the voluntary market, being now more conscious about the detrimental impacts
related to their choices, consequently preferring lower-carbon intensive energy
sources. Furthermore, a voluntary market allows consumers to go beyond the requirements
set by policies and opens opportunities for new product development or to
global initiatives gathering companies willing to source its electricity
completely from renewable energy sources. Therefore, RECs have an important
role in supplying the swiftly increasing demand within the voluntary market. For
both markets to coexist and maximize their jointed effect in the national grid,
it is important that the voluntary market is incremental to the what the
mandatory market can achieve alone. (Environmental Protection Agency, 2018)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now