As state-level renewable portfolio standards (RPS) have driven large increases in U.S. renewable generation capacity, states have sought to quantify the costs and benefits of these policies. This paper examines recent costs and benefits of RPS implementation, focusing on the net (or incremental) cost to utilities of renewables used for compliance with RPS targets during the years 2010-2012. Incremental RPS cost estimates are developed using a wide variety of methods and assumptions, which makes comparisons among states imperfect. For states with restructured electricity markets, we use a standardized method to calculate incremental costs based on renewable energy certificate prices, alternative compliance payment levels, and compliance obligations. For states with traditionally regulated electricity markets, we rely on estimates produced by utilities and regulators, whose methods and underlying assumptions vary widely. We find that recent estimated incremental RPS costs were equivalent to less than 2% of retail rates in 17 states and about 2%-4% in eight states, or -$4/MWh to $48/MWh of renewable energy required across all states (for the most recent year available in each state). Estimated RPS costs in most states were well below the respective cost caps, although a few states are currently operating at or near their cap.

More than half of U.S. states have renewable portfolio standards (RPS) in place and have collectively deployed approximately 46,000 MW of new renewable energy capacity through year-end 2012. Most of these policies have five or more years of implementation experience, enabling an assessment of their costs and benefits. Understanding RPS benefits and costs is essential for policymakers evaluating existing RPS policies, assessing the need for modifications, and considering new policies.This report surveys and summarizes existing state-level RPS cost and benefit estimates and examines the various methods used to calculate such estimates. The report relies largely upon data or results reported directly by electric utilities and state regulators. As such, the estimated costs and benefits itemized in this document do not result from the application of a standardized approach or the use of a consistent set of underlying assumptions. Because the reported values may differ from those derived through a more consistent analytical treatment, we do not provide an aggregate national estimate of RPS costs and benefits, nor do we attempt to quantify net RPS benefits at national or state levels. The report summarizes state-level RPS costs to date and considers how those costs may evolve going forward given scheduled increases in RPS targets and cost containment mechanisms incorporated into existing policies. The report also summarizes RPS benefits estimates, based on published studies for individual states, and discusses key methodological considerations. These estimates, for example, of the social value of carbon emissions reduction and the human health impacts of reduced air emissions, are based on a variety of methodologies and assumptions. In comparison to the summary of estimated RPS costs, the summary of RPS benefits is more limited, as relatively few states have undertaken detailed benefits estimates. Further, for those states that have estimated RPS benefits, most assess only a limited number of impact types; as a consequence, some types of benefits are not reflected in this report. RPS CostsOur analysis focuses specifically on the incremental cost of meeting RPS targets, i.e., the cost above and beyond what would have been incurred absent the RPS, over the 2010-2012 period. For states with restructured markets, we derive RPS compliance costs based on the cost of renewable energy certificates (RECs) and alternative compliance payments (ACPs). For traditionally regulated states, we instead rely upon RPS cost estimates reported directly by utilities or regulators within annual compliance reports or other regulatory filings (not prospective studies), and translate those estimates into a set of common metrics for comparison. The methods used by utilities and regulators to estimate incremental compliance costs vary considerably from state to state, in some cases reflecting statutory or regulatory requirements, and a number of states are currently engaged in processes to refine and standardize their approaches to RPS cost calcu...

The costs of renewable energy-based electricity generation have fallen precipitously in recent years to levels that are increasingly competitive with traditional generation such as fossil fuelbased generation. As these costs become increasingly competitive, private developers, policymakers, and energy system planners are searching for opportunities to harness high-quality renewable energy resources. Developing economies are setting ambitious targets and exploring how cost-effective, grid-connected renewable energy options can help power economic growth and meet growing electricity demands. This includes the member states of the Association of Southeast Asian Nations (ASEAN) that are determined to reach a target of 23% of renewable energy in the region's total primary energy supply by 2025. 1 A critical gap to identifying opportunities and scaling up renewable energy is the lack of quality data and analyses to support decisions on the investment and deployment of renewables-including wind and solar photovoltaics (PV) (ACE and IRENA 2016). This work supports decision making by providing high-quality data and spatial analysis of the cost of utility-scale wind and solar PV generation in select countries of Southeast Asiaspecifically, the ASEAN member states. Generation costs are expressed as the levelized cost of energy (LCOE)-a commonly used metric that represents the net present value of the unit cost of electricity during the lifetime of a particular electricity generation technology. This is the first spatial estimate of LCOE for these technologies within the ASEAN member states-providing insights into the roles that renewable energy resource quality and other factors may play in generation costs.

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