Renewable Energy

Renewable Energy

Maryland’s Renewable Portfolio Standard (RPS) was established in 2004 to capture the economic, environmental, fuel diversity, and security benefits of renewable energy; establish a market for renewable energy in Maryland; and lower the cost of obtaining electricity generated from renewable sources. Maryland’s RPS Program does this by gradually increasing the amount of renewable energy electricity suppliers must procure from renewable sources by 2030 to 50 percent as most recently updated by the Clean Energy Jobs Act of 2019. As the RPS increases, fewer and fewer pollutants enter our air and water, and the state’s array of renewable energy resources grows. The application processes associated with the RPS can be found under Description of the Documents for the Maryland Renewable Energy Portfolio Standard Program. These application processes have not changed in the last year. On average, the time to process an application and receive a decision is 45 days.

The Energy Analysis and Planning Division (EAP) reviews the annual compliance of electricity suppliers and electric utilities to the Renewable Portfolio Standard requirements. EAP assesses the environmental impact, in accordance with the Climate Solutions Now Act of 2022, on all filings that fall under the division’s responsibility.

Daniel J. Hurley is the Director of the Energy Analysis and Planning Division; Kevin D. Mosier and Samuel Beirne serve as assistant directors.

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Distributed Energy Resource Aggregator License

Any entity seeking authorization to aggregate and manage the operations of one or more Distributed Energy Resources (DER), either independently or utility-affiliated, in the state of Maryland for the purpose of providing electric distribution system support services, demand-side management, and market participation in Maryland’s retail programs or the wholesale electricity market, it must submit an application to register for a license to operate as such.

If the entity currently operates as a curtailment service provider (CSP) in the state of Maryland and is seeking authorization to aggregate and manage the operations of a broader array of energy resources (e.g., generation, energy storage), in addition to or in place of the resources it currently manages, for the purpose of providing electric distribution system support services, demand-side management, and market participation in Maryland’s retail programs or the wholesale electricity market, it must submit an application to register for a license to operate as such.

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Maryland Renewable Energy Portfolio Standard Program – Frequently Asked Questions

The objective of Maryland’s Renewable Portfolio Standard (RPS) is to recognize and develop the benefits associated with a diverse collection of renewable energy supplies. The State’s RPS Program does this by recognizing the environmental and consumer benefits associated with renewable energy. The RPS Program requires electricity suppliers to meet a prescribed minimum portion of their retail electricity sales with various renewable energy sources, which have been classified within the RPS Statute as Tier 1 and Tier 2 renewable sources. The program is implemented through the creation, sale and transfer of Renewable Energy Credits (RECs). The development of renewable energy sources is further promoted by requiring electricity suppliers to pay a financial penalty for failing to acquire sufficient RECs to satisfy the RPS. The penalty is used to support the creation of new Tier 1 renewable sources in the State.

RPS is the abbreviation for the Renewable Energy Portfolio Standard.

A Maryland-Eligible Renewable Energy Credit is equal to the attributes associated with one megawatt-hour of Tier 1 or Tier 2 renewable energy from a certified Renewable Energy Facility.

Section 7-701 of the Public Utilities Article of the Annotated Code of Maryland provides the framework by which the states eligible to participate in the Maryland RPS Program may be determined. Renewable energy credits must be derived from a source that is located in the PJM Region. Renewable energy credits may come from outside the area described above if the electricity is delivered into the PJM Region.

Fuel sources are divided into two categories, Tier 1 and Tier 2. Tier 1 includes Solar, Wind, Qualifying Biomass, Methane from a landfill or wastewater treatment plant, Geothermal, Ocean, Fuel Cell that produces electricity from a Tier 1 source, Hydroelectric power plants of less than 30 MW capacity, Poultry litter-to-energy, Waste-to-energy, and Refuse–derived fuel. Tier 2 includes hydroelectric power other than pump storage generation.

According to Section 7-701 of the Public Utilities Article of the Annotated Code of Maryland, “Qualifying biomass” means a nonhazardous, organic material that is available on a renewable or recurring basis, and is:

  • Waste material that is segregated from inorganic waste material and is derived from sources including,
    • Except for old growth timber, any of the following forest-related resources: A) Mill residue, except sawdust and wood shavings; B) Precommercial soft wood thinning; C) Slash; D) Brush; or E) Yard waste;
    • A pallet, crate, or dunnage;
    • Agricultural and silvicultural sources, including tree crops, vineyard materials, grain, legumes, sugar, and other crop by-products or residues; or
    • Gas produced from the anaerobic decomposition of animal waste or poultry waste; or
  • A plant that is cultivated exclusively for purposes of being used at a Tier 1 renewable source or a Tier 2 renewable source to produce electricity.

According to Section 7-701 of the Public Utility Companies Article of the Annotated Code of Maryland, “Qualifying biomass” does not include:

  • Unsegregated solid waste or postconsumer wastepaper; or
  • An invasive exotic plant species.

For each filing, it is required that one original copy, sixteen additional copies and an electronic copy of the filings be mailed in.

The required forms and additional information is available here. The single largest cause of delay in the processing of applications is incomplete applications or attachments. The Commission will not consider incomplete applications.

A complete description of the forms for the Maryland RPS Program is listed here.

An officer of the applicant should complete the various affidavits.

Yes, the affidavits should be notarized.

Whoever signs the application is required to provide authority to sign on behalf of the applicant. A letter from a corporate officer or general counsel granting and/or confirming authority to sign is appropriate. If a corporate officer or general counsel signs the application, a letter of appointment to the position is appropriate documentation of authority to sign on behalf of the applicant.

The Generation Attribute Tracking System (GATS) is a system designed by PJM Environmental Information Services, Inc. for the purpose of tracking Renewable Energy Credits. GATS will monitor the generation of participating units and create certificates monthly based on actual output. A GATS certificate from a Commission-certified renewable energy facility will be considered a Maryland-eligible Renewable Energy Credit. Suppliers and load-serving entities are required to maintain a GATS account for compliance purposes. More information is available here.