Discussion
A renewable purchase obligation requires a distribution licensee to
Answer: A
Correct answer: source a stated share of its energy from renewable generation
A renewable purchase obligation sets the minimum fraction of a licensee’s energy that must come from renewable sources, and the obligation can be met by buying that power or by buying renewable energy certificates from someone who generated more than their own share. It creates demand rather than supply, which is why it works alongside rather than instead of generation incentives.
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