Summary: 5% renewable energy by 2025—energy efficiency may meet a quarter of the standard in any given year, or 6.25%cumulative savings by 2025.
In 1997, Nevada established a renewable portfolio standard (RPS) as part of its restructuring legislation. Assembly Bill (AB) 3 of 2005 revised the RPS, increasing the portfolio requirement to 20% by 2015 and allowing utilities to use energy efficiency to help meet the requirements. Amendments in Senate Bill 358 of 2009 raised the portfolio requirement to 25% by 2025. Energy efficiency measures qualify if they are subsidized by the electric utility, reduce demand (as opposed to shifting peak demand to off-peak hours), and are implemented or sited at a retail customer’s location after January 1, 2005. Energy efficiency savings can meet up to a quarter of the total standard in any given year. AB1 of 2007 expanded the definition of efficiency resources to include district heating systems powered by geothermal hot water.
The Public Utilities Commission of Nevada (PUCN) established a program to allow energy providers to buy and sell portfolio energy credits (PECs) in order to meet energy portfolio requirements. The number of kWh saved by energy efficiency measures is multiplied by 1.05 to determine the number of PECs. For electricity saved during peak periods as a result of efficiency measures, the credit multiplier is increased to 2.0. PECs are valid for a period of four years.
Since they are cumulative savings goals, the 25% target in 2025 will require only 6.25% of its sales in 2025 to be met with energy efficiency over a twenty-year period. The average annual savings goals for periods 2009-2011, 2011-2013, and 2013-2015 will be 0.375%, dropping to 0.25% for the next two five year intervals. While these levels provided motivation to the utilities to pursue energy efficiency in the early years as they were building their efficiency programs, these levels are now far below the companies' actual achievements and are no stimulus to be aggressive in conducting energy efficiency today.
In 2013, the legislature voted to phase out this energy efficiency allowance in order to effectively increase the requirement for new renewable energy.
Nevada has no Natural Gas EERS.
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