In Massachusetts, new regulations have been established for a state standard calling for the production of electricity from renewable energy. The Massachusetts Renewable Portfolio Standard (RPS) spells out that retail suppliers of electricity must make use of new renewable energy sources to provide 1% of their power in 2003. This increases to 4% by 2009.

However, electricity suppliers are allowed to purchase credits from the Massachusetts Technology Park Corp., administrator of the state’s Renewable Energy Trust. For 2003, these credits will cost $50/MWh, or $0.05/kWh, which is expected to be higher than the cost of developing new renewable power sources.

— Greg Mazurkiewicz

Publication date: 06/17/2002