What happened in other states

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Few states followed California's lead in opening markets for renewables. Even though federal tax credits were available across the country until 1986, and quite a few other states offered tax credits as well, California's regulatory treatment was uniquely effective at nurturing renewables development. No other state saw such a strong and broad-based growth of all renewable technologies.

The state of New York made an effort to encourage independent power with its famous 'six-cent' law, which paid independent generators a standard rate of six

Sourse: American Wind Energy Association

Figure 7.1 Year-by-year installed wind capacity in the US

Sourse: American Wind Energy Association

Figure 7.1 Year-by-year installed wind capacity in the US

US cents per kWh over the course of the contract. Unfortunately, given their emerging status and still high cost, the rate was not sufficient to support renewa-bles at that time. Instead it resulted in a rush of co-generation and overwhelmed the state's utilities with what turned out to be relatively high-cost power as the wholesale price of electricity trended down over the course of the next decade. The state of Maine also enacted high avoided-cost prices as a means of encouraging renewables. A number of biomass and small hydro projects were developed in Maine, but similar to New York, the power from these projects turned out to be relatively high cost as wholesale prices declined.

The avoided cost provisions of PURPA soon came to serve as an effective barrier to new renewables deployment. The reality was that renewables, in their still emerging state, simply were not in a position to compete head to head with coal or gas-fired power in most conventional avoided-cost calculations. Thus PURPA soon ceased to be an effective spur to renewables development. The only way new renewables projects were going to move forward was through a strong commitment from state policy-makers to diversify the utility portfolio with cleaner technologies. Very few states, with the exception of Iowa in 1983 and Minnesota in 1994, were willing to push such requirements.2

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Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

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