Prince Edward Island Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS) requires electricity providers to obtain a minimum percentage of their electricity supply from eligible renewable energy sources by a certain date with the required percentage usually increasing over time. An RPS can be voluntary or mandatory. Mandatory RPSs can include penalties for non-compliance. Prince Edward Island has a legislated RPS, through a Renewable Energy Act, which requires public utilities to obtain 15 percent of their electricity generation from renewable energy sources starting on January 1, 2011. There is a minimum price guaranteed at CAD 0.0775/kWh. The size of the projects is limited at less than 100 kW for small projects, between more than 100 kW and less than 1 MW for medium-sized projects, and over 1 MW for large projects. The eligible electricity generating facilities must be new, i.e. commissioned after December 20, 2005, be grid-connected, and be located both in or out of the province, as compliance can be proven by purchasing Renewable Energy Certificates (RECs) from another jurisdiction. For non-compliance, Prince Edward Island RPS includes a fine of no more than CAD300,000 for the public utility and no more than CAD100,000 for the officer or director of a public utility; a penalty of CAD5,000 a day for delay in presenting the annual report of compliance is also stipulated in the Renewable Energy Act.

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