Maine and Massachusetts have the greatest potential to grow their renewable capacity while Connecticut has the least.
To be “Green” in New England is a matter of law, not individual choice. With the exception of Vermont, every other New England State has a Renewable Portfolio Standard which mandates a certain percentage of electricity sold within the State will be derived from renewable sources. Each year, this percentage increases at 1% for all States, except Connecticut, which increases by 1.375%.
Currently, wind power development is the major renewable used to meet the increasing percentages of State’s Renewable Portfolio Standards.
To assure that companies who buy and resell electricity ( Competitive Electricity Suppliers ) are buying and reselling the legal amount of Renewables, they purchase Renewable Energy Credits (REC). REC’s are just that, a credit applied to the renewable generator for the creation of electricity using “renewable “ resources. The more electricity generated by the “ Renewable “, the more REC’s generated.
Competitive electricity suppliers can purchase the Renewable Energy Credits generated by renewables in another state and use these RECs to meet another State’s RPS. The REC price is determined by auction and suppliers who sell electricity without having acquired the RPS percentage of RECs will have to make an Alternate Compliance Payment to the State, which, for the purpose of assuring adequate funding for the expansion of renewable generation, is set at a price based on the costs of constructing “ Renewables “ , which means wind developments.
New England is at the “ Cliff “, where the percentage of electricity generated from “renewables” to “conventional” sources won’t meet the percentages mandated in the State’s Renewable Portfolio Standards. This will mean
“ exploding “ costs to the ratepayers and “exploding” wealth to the wind developments.