Renewable Portfolio Standard

H.B. 1526, enacted in April 2020 established a mandatory renewable portfolio standard for electric utilities and suppliers. 

Requirements:

Virginia's Renewable Portfolio Standard (RPS) requires Phase II Utilities (Dominion Energy) to generate 100% of their power from renewable sources by 2045. The RPS requires Phase I Utilities (Appalachian Power Company) to generate 100% of their power from renewable sources by 2050. A complete list of requirements by year is given below:

• 2021 - 6% for Phase I Utilities, 14% for Phase II Utilities
• 2022 - 7% for Phase I Utilities, 17% for Phase II Utilities
• 2023 - 8% for Phase I Utilities, 20% for Phase II Utilities
• 2024 - 10% for Phase I Utilities, 23% for Phase II Utilities
• 2025 - 14% for Phase I Utilities, 26% for Phase II Utilities
• 2026 - 17% for Phase I Utilities, 29% for Phase II Utilities
• 2027 - 20% for Phase I Utilities, 32% for Phase II Utilities
• 2028 - 24% for Phase I Utilities, 35% for Phase II Utilities
• 2029 - 27% for Phase I Utilities, 38% for Phase II Utilities
• 2030 - 30% for Phase I Utilities, 41% for Phase II Utilities
• 2031 - 33% for Phase I Utilities, 45% for Phase II Utilities
• 2032 - 36% for Phase I Utilities, 49% for Phase II Utilities
• 2033 - 39% for Phase I Utilities, 52% for Phase II Utilities
• 2034 - 42% for Phase I Utilities, 55% for Phase II Utilities
• 2035 - 45% for Phase I Utilities, 59% for Phase II Utilities
• 2036 - 53% for Phase I Utilities, 63% for Phase II Utilities
• 2037 - 53% for Phase I Utilities, 67% for Phase II Utilities
• 2038 - 57% for Phase I Utilities, 71% for Phase II Utilities
• 2039 - 61% for Phase I Utilities, 75% for Phase II Utilities
• 2040 - 65% for Phase I Utilities, 79% for Phase II Utilities
• 2041 - 68% for Phase I Utilities, 83% for Phase II Utilities
• 2042 - 71% for Phase I Utilities, 87% for Phase II Utilities
• 2043 - 74% for Phase I Utilities, 91% for Phase II Utilities
• 2044 - 77% for Phase I Utilities, 95% for Phase II Utilities
• 2045 - 80% for Phase I Utilities, 100% for Phase II Utilities
• 2046 - 84% for Phase I Utilities
• 2047 - 88% for Phase I Utilities
• 2048 - 92% for Phase I Utilities
• 2049 - 96% for Phase I Utilities
• 2050 - 100% for Phase I Utilities

Eligible Technologies:

From 2021-2024, a Phase I and Phase II Utility may use RECs from any renewable energy facility. Renewable energy facilities, as defined by Virginia law, are energy derived from wind, sunlight, biomass, falling water, energy from waste, landfill gas, municipal solid waste, geothermal power, and wave motion. Renewable energy sources also include the proportion of electric or thermal energy from a facility that comes from the co-firing of biomass. At no time may a utility use RECs from renewable thermal energy or equivalent, biomass-fired facilities outside Virginia, or biomass-fired facilities within Virginia that either supply more than 10% of their annual net electrical generation to the grid or more than 15% of their yearly total useful energy to entities other than the manufacturing facility.

For 2025 and any years after, only RPS eligible sources may be used to satisfy the requirements of the RPS program. RPS eligible sources include:

• Biomass-fired facilities within Virginia that either supply no more than 10% of their annual net electrical generation to the grid or no more than 15% of their yearly total useful energy to entities other than the manufacturing facility
• Falling water resources located in Virginia or within the PJM Interconnection, LLC region that are owned by a Phase I or Phase II Utility for which that utility has entered into a contract prior to July 1, 2024 
• Landfill-gas-fired or waste-to-energy plants located within Virginia or the PJM Interconnection, LLC region in operation as of January 1, 2020 (fossil fuel and woody biomass combustion excluded) 
• Energy from a geothermal heating and cooling system. RECs from a geothermal heating and cooling system are created based on the amount of energy, converted from BTUs to kilowatt-hours, that is generated by a geothermal heating and cooling system for space heating and cooling or water heating. 
• Solar or Wind resources directly interconnected into Virginia or physically located within the PJM Interconnection, LLC region
• Falling water resources not owned by a utility that 1. comprise less than 65 MW, 2. began to operate commercially after December 31, 1979, 3. added incremental generation of more than 50 percent of original nameplate capacity after December 31, 1979, provided that these resources are located within Virginia