Renewable Portfolio Standard
A Renewable Portfolio Standard (RPS) is a regulatory policy that requires electricity suppliers to source a specified percentage of their electricity from renewable energy sources, such as wind, solar, or hydro, by a certain date. It is designed to promote the adoption of renewable energy, reduce greenhouse gas emissions, and diversify the energy mix. RPS policies are typically implemented at the state or national level and often include mechanisms like renewable energy certificates (RECs) for compliance tracking.
Developers should learn about RPS when working on energy sector projects, sustainability software, or regulatory compliance tools, as it impacts energy market dynamics and renewable energy investments. Understanding RPS helps in building applications for energy forecasting, carbon accounting, or grid management, especially in regions with strong environmental policies. It is crucial for roles in clean tech, utilities, or government agencies focused on energy transition.