Why the Time is Right for Nevada to Raise its Renewable Portfolio Standard

, senior analyst, Clean Energy | March 23, 2017, 12:56 pm EST
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It’s an exciting time for renewable energy advocates in Nevada. The state enjoys world-class renewable generation potential, and state residents are widely interested in clean energy development and jobs.

Unfortunately, the state’s clean energy progress has stalled, as the state’s main policy driver, the Renewable Portfolio Standard (RPS), greatly underestimates the amount of renewable energy potential in the state. The current standard would only require that utilities source 25% of their electricity from renewables by 2025.

Fortunately, there’s a proposed bill that could help. Assembly Bill (AB) 206 would increase Nevada’s RPS to 50% by 2030 with a pathway to 80% by 2040. Passing AB 206 would place Nevada in the camp with other clean energy leaders like Hawaii, Vermont, California, Oregon and Maine, and send a strong signal to the clean energy and clean technology industries that Nevada is open for business.

A solar PV array in Gerlach, NV. Photo: BlackRockSolar

There are several reasons why the time is right for Nevada to take the next step on clean energy:

Nevada has one of the best solar resources in the country. This Department of Energy map showcases how strong the solar resource is in Nevada. Costs of solar generation have fallen by 78% since 2009 and there is no question that Nevada can and should take full advantage of this clean energy resource.

The state is over-reliant on natural gas. In 2015, Nevada relied upon natural gas to meet almost three quarters of its electricity needs. Relying on one type of generation is never a smart idea, especially gas, whose price is notoriously volatile. The degree to which Nevada relies on natural gas exposes utilities and its customers to price spikes, and adds significantly to carbon emissions and air pollution. Bringing a diverse supply of renewable energy technologies online will help reduce reliance on costly and polluting natural gas.

Reducing natural gas generation will help Nevadans most vulnerable to pollution from fossil fuels. Most of the gas-fired power plants in Nevada are located in low-income communities whose residents are disproportionately impacted from pollution from fossil fuels. Ramping up renewables will reduce the amount of natural gas and air pollution generated in the state.

Nevadans want more clean energy. According to the 2017 State of the Rockies poll (see question 30), 80 percent of Nevadans want to encourage the use of solar energy.

The grid can handle more renewables. Opponents of clean energy like to say that wind and solar generation depend on the weather, so they will make the grid unreliable. This is not true. Grid operators are constantly managing for fluctuations in both the supply of and demand for electricity. Large quantities of renewables on the grid make balancing supply and demand more challenging, but we have the tools to do it.

Making sure renewable installations are spread out, creating financial incentives to shift electricity demand towards times of the day when renewable generation is abundant, and investing in energy storage like the batteries Tesla is building in the Gigafactory near Sparks are all examples of these tools. I’ve written a lot about grid integration solutions for the California RPS and all of the same issues apply to Nevada; folks interested in learning more should check out this blog.

It’s truly time for Nevada to turn its world-class renewable energy resources into sources of clean energy generation that will benefit its economy and environment. I’ll be watching AB 206 closely and hope that the Legislature supports this effort, which will help Nevada realize its potential as a clean energy leader.

Posted in: Energy

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