UNDERSTANDING VERMONT'S RENEWABLE ENERGY POLICIES, 2018

http://vtce.org/VCE_White_Paper_UnderstandingVermontEnergyPolicies_09August2018.pdf

Vermonters for a Clean Environment (VCE) provides facts and information so people can make informed decisions. In our discussions with Vermonters it became evident that mostresidents do not understand the statutory mechanisms to achieve the state’s renewableenergy goals. 

To that end, this paper provides an overview of enacted policies, a discussionabout northern Vermont’s grid constraints, and information about Vermont as part of theregional electric grid.Vermont has a complicated set of energy policies. 

They include

• A Renewable Energy Standard (RES)• A standard-offer program

• A net-metering program• Act 174’s energy planning process

• Arbitrage with Renewable Energy Credits (RECs)

In addition, Vermont has both utility and merchant developers with different regulatoryoversight and competing profit motives. And there are unexpected costs due to electric gridlimitations in northern Vermont.

The complexity and unintended consequences of these policies raise questions for more thanone type of stakeholder. Ratepayers, taxpayers, advocates, property owners, developers,investors and utilities have affected interests.

Decision-makers are still learning about the technical issues associated with the gridaccepting high levels of intermittent renewable generation. Utilities and regulators need toperform more analysis and planning to better inform residents of costs to solve theproblems. Perhaps most importantly, residents need to understand these policies. Only then can they assist policy makers to identify and fix energy policy problems.