DC has limited renewable capacity, met compliance targets through purchase of renewable energy credits
The District of Columbia (DC) increased and extended its renewable portfolio standard (RPS) target from 20 per cent by 2020 to 50 per cent by 2032, according to the US Energy Information Administration.
The target includes a separate solar-specific target of 5 per cent by 2032, an increase and extension from 2.5 per cent by 2023.
Technologies eligible to meet DC’s RPS overall target include geothermal, solar (both thermal and electric), wind, biomass, landfill gas, marine/hydrokinetic technologies, fuel cells using renewable fuels, and, to a limited extent, conventional hydroelectric power.
In 2015, electricity sales in the District of Columbia totaled 11.3 billion kilowatthours (kWh) with an RPS requirement of 12 per cent.
Because DC has limited renewable capacity, almost all of the RPS compliance targets were met by generation outside of the District through the purchase of renewable energy credits (RECs).
RECs are tradeable certificates that certify that one megawatthour of electricity was generated from eligible renewable energy sources.
In 2015, DC’s target required nearly 1.4 million renewable energy credits.
Of the credits submitted for compliance in 2015, most were from biomass generation, including both wood waste and black liquor, representing 39 per cent and 27 per cent of the overall requirement, respectively.
Wind and solar generation represented 20 per cent and 3 per cent of the overall requirement, respectively.
Because DC has no utility-scale renewable electricity generators, the only in-district generation qualifying for the RPS came from distributed solar systems (such as rooftop panels) installed in the District.
Power plant operators in other states can apply to be eligible for DC’s RPS, as long as they’re part of or adjacent to the PJM region.
A total of 19 states outside of DC have approved capacity that can count toward DC’s RPS.
Because some of these states may have their own renewable portfolio standards, the eligible generating capacity may not necessarily be fully available to meet the District’s RPS requirement.
About half of the approved capacity is in Illinois, Indiana, and Pennsylvania. The 22 MW of solar capacity in DC represented only 0.3 per cent of total eligible capacity as of July 2016.
The Distributed Generation Amendment Act (DGAA) of 2011 requires all qualifying solar generators to be located in DC or on a distribution feeder serving DC to qualify.
Outside of DC itself, Pennsylvania contains the largest amount of solar capacity eligible to be applied to DC’s solar-specific target.
The DC Public Service Commission expects that approximately 70 MW of solar capacity will be required to meet the solar-specific target in 2016.
As of July, only 43 MW of eligible solar capacity was available.
Electric service providers that cannot meet DC’s RPS targets must make alternative compliance payments.
In 2015, these providers collectively paid nearly $20 million in alternative compliance payments, mostly as a result of not meeting the solar-specific targets.
Currently, the alternative compliance payment for solar is set at $500 per REC, but is set to decline after 2023 to $50 per REC by 2033.
