Pacific Gas and Electric Company (PG&E) announced earlier this year that it has entered in seven power purchase agreements for a total of 1,130 MW of solar power with BrightSource Energy, Inc. This announcement illustrates the positive effects of the California Renewable Portfolio Standard (RPS).
The California RPS requires utilities in California to increase their procurement from renewable energy sources by at least 1% of their annual electricity sales until a goal of 20% is reached by 2010. It is one of the nation's most ambitious goals. An executive order signed by California Governor Schwarzenegger establishes an even more ambitious goal of 33% by 2020.
The new agreements that PG&E has entered into are expected to deliver enough solar power to offset the consumption of about 530,000 average homes. This example demonstrates that RPSs can be an excellent tool to increase the chair of renewable energy in the State's energy mix. While California has been one of the nations role models in the RPS-arena many states are lacking similar standards.
