Difficulty Securing Renewable Portfolio Standard (RPS) Compliance Contracts
Definition
Many US states have Renewable Portfolio Standard (RPS) policies requiring utilities to source specified percentages of electricity from renewable sources. Biomass has historically qualified but faces increasing restrictions and declining utility demand. Plant managers struggle to: (1) secure Renewable Energy Credit (REC) contracts as utilities prioritize wind/solar, (2) meet feedstock sustainability requirements (some states now restrict forest biomass, require waste-only biomass), (3) navigate state-specific RPS eligibility rules that are tightening, (4) compete against cheaper wind/solar in RPS procurement processes. New Jersey and other states specifically restrict RPS-eligible biomass to waste streams (wastewater treatment residues, landfill gas, food waste), eliminating forest-based feedstock from compliance market. This reduces addressable market and contract values. Plant managers must: (1) invest in feedstock sourcing documentation to prove RPS compliance, (2) pursue hybrid waste-based models, (3) shift to merchant or alternative customer models, (4) accept lower contract pricing in RPS auctions.
Key Findings
- Financial Impact: $200K - $800K annual revenue impact from lower RPS contract pricing vs. alternative options
- Frequency: annual (contract renewal); episodic (policy changes)
Why This Matters
RPS policy tracking and advisory services, sustainable feedstock sourcing documentation/certification, RPS contract origination and trading, alternative revenue stream development (industrial heat, grid services)
Affected Stakeholders
Plant Manager/General Manager
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
Data available with full access.
Get Solutions for This Problem
Full report with actionable solutions
- Solutions for this specific pain
- Solutions for all 15 industry pains
- Where to find first clients
- Pricing & launch costs
Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
High Operating Costs Driving Plant Closures
Substantial Capital Requirements for New Equipment/Plants
Volatile and Competing Feedstock Prices and Supply
Declining Direct-Fired System Viability and Obsolescence
Stringent Environmental Regulations and Compliance Costs
Limited Market Size and Declining Demand Growth
Request Deep Analysis
🇺🇸 Be first to access this market's intelligence