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Renewable Energy Portfolio Cost Cap Provision



The Renewable Energy Standards Portfolio Act (26 Del. C. § 354(i) & (j)) includes a cost cap provision that allows the state to freeze the renewable Energy Portfolio Standards program if the costs exceed the benefits.

The cost cap provision gives the Director of the Division of Climate, Coastal, & Energy the authority to freeze implementation of the Renewable Portfolio Standard if the cost of renewable energy compliance exceeds three percent of total retail costs of electricity for the compliance year or if the solar energy cost of compliance exceeds one percent of the total retail costs of electricity for the compliance year.

Cost Cap Regulations

Regulation 2102 (7 DE Admin Code 2102) governing this process was promulgated in 2016 and repealed effective August 11, 2017. Regulation 2102 was repealed to comply with a commitment to repeal the regulation made to Superior Court Judge Abigail LeGrow in the lawsuit DPA v. DNREC.

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