Renewable portfolio standards (RPS) and feed-in tariffs are energy policies. Which statement is correct?

Renewable portfolio standards (RPS) and feed-in tariffs are energy policies. Which statement is correct?

• A. RPS Mandates a Share of Electricity from Renewables; Feed-in Tariffs Guarantee a Fixed Premium Price to Renewable Producers.
• B. RPS Guarantees a Fixed Price to Electricity Producers.
• C. Feed-in Tariffs Require All Energy to Be From Renewables.
• D. RPS Sets a Carbon Price.

Answer: (A)

RPS requires utilities to meet a minimum portion of their electricity from renewable sources by a target date, creating demand for renewables (often using tradable credits to track compliance). Feed-in tariffs provide a guaranteed, fixed premium price to renewable energy producers for the electricity they feed into the grid, usually for a set contract period. This combination correctly describes the two policies: one sets a required share of renewables, the other ensures predictable revenue for renewables. The other statements misstate how these policies work—RPS does not fix prices, feed-in tariffs do not require all energy to be renewable, and carbon pricing is not determined by an RPS.

RPS requires utilities to meet a minimum portion of their electricity from renewable sources by a target date, creating demand for renewables (often using tradable credits to track compliance). Feed-in tariffs provide a guaranteed, fixed premium price to renewable energy producers for the electricity they feed into the grid, usually for a set contract period. This combination correctly describes the two policies: one sets a required share of renewables, the other ensures predictable revenue for renewables. The other statements misstate how these policies work—RPS does not fix prices, feed-in tariffs do not require all energy to be renewable, and carbon pricing is not determined by an RPS.