Procurement Options for New Renewable Electricity Supply

Research output: NRELTechnical Report


State renewable portfolio standard (RPS) policies require utilities and load-serving entities (LSEs) to procure renewable energy generation. Utility procurement options may be a function of state policy and regulatory preferences, and in some cases, may be dictated by legislative authority. Utilities and LSEs commonly use competitive solicitations or bilateral contracting to procure renewableenergy supply to meet RPS mandates. However, policymakers and regulators in several states are beginning to explore the use of alternatives, namely feed-in tariffs (FITs) and auctions to procure renewable energy supply. This report evaluates four procurement strategies (competitive solicitations, bilateral contracting, FITs, and auctions) against four main criteria: (1) pricing; (2) complexityand efficiency of the procurement process; (3) impacts on developers' access to markets; and (4) ability to complement utility decision-making processes. These criteria were chosen because they take into account the perspective of each group of stakeholders: ratepayers, regulators, utilities, investors, and developers.
Original languageAmerican English
Number of pages54
StatePublished - 2011

NREL Publication Number

  • NREL/TP-6A20-52983


  • renewable energy requirements
  • state policy regulatory
  • state renewable portfolio standards (RPS)
  • utilities load-serving entities lse
  • utility procurement options


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