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PDF: 1,1 MB - Exportinitiative Erneuerbare Energien

PDF: 1,1 MB - Exportinitiative Erneuerbare Energien

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Before using new renewable and recycled energy after August 1, 2007, to meet the<br />

objective, each retail provider or its generation supplier was required to make an<br />

economic evaluation to determine if the use of new renewable and recycled energy is<br />

cost-effective considering other electricity alternatives. After evaluating the renewable<br />

and recycled energy objective and economic evaluation, the retail provider or its<br />

generation supplier may use the electricity alternative that best meets its resource or<br />

customer needs.<br />

SOUTH DAKOTA<br />

Renewable Energy Portfolio<br />

In February 2008, South Dakota enacted legislation establishing an objective that by<br />

2015, 10% of all retail electricity sales be obtained from renewable and recycled energy.<br />

The objective applies to all retail providers of electricity within the state regardless of<br />

ownership. As a voluntary objective, there are no penalties or sanctions for retail<br />

providers that fail to meet the goal. Before using any renewable or recycled energy after<br />

July 1, 2008, to meet the objective, retail providers or their generation suppliers must<br />

evaluate whether the use of new renewable and recycled energy is cost-effective and<br />

reasonable, taking into consideration other electricity alternatives. This evaluation may<br />

then be used to decide on an alternative that best meets a retail provider's resource or<br />

customer needs.<br />

The objective may be met either through sales of qualifying electricity or through<br />

renewable energy credits (RECs) purchased and retired to offset non-qualifying retail<br />

sales. Qualifying electricity includes that produced from wind, solar, hydroelectric,<br />

biomass* or geothermal technologies. Also eligible is electricity generated from currently<br />

unused waste heat from combustion or another process that does not use an additional<br />

combustion process and that is not the result of a system whose primary purpose is the<br />

generation of electricity. Finally, hydrogen generated from any of the preceding<br />

resources is eligible. The current definitions stem from H.B. 1272, enacted in March<br />

2008.<br />

For the purpose of calculating the amount of electricity needed to meet the objective,<br />

retail providers may deduct from their baseline retail sales the proportion of electricity<br />

obtained from hydroelectric facilities with an in-service date before July 1, 2008.<br />

Municipal and cooperative utilities that receive wholesale electricity through a municipal<br />

power agency or generation and transmission cooperative may aggregate their<br />

resources to meet the objective.<br />

In addition to meeting the technology eligibility criteria described above, electricity must<br />

also meet the South Dakota Public Utilities Commission's (PUC) rules for tracking,<br />

recording and verifying RECs. The PUC is authorized to develop such rules under SDCL<br />

32

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