REP - Certified Renewable Energy Professional Renewable Energy Policy Questions and Answers

Question 1

What is the primary objective of a Renewable Portfolio Standard (RPS) as a policy mechanism?

Accepted Answer

To mandate that electric utilities source a specific minimum percentage of their electricity from eligible renewable resources by a target date.

Answer

To provide a fixed, long-term price for each kilowatt-hour of renewable energy fed into the grid.

Answer

To offer an upfront tax credit to developers based on the total capital investment in a new renewable energy facility.

Answer

To create a government-funded research and development program for emerging clean energy technologies.

Question 2

A project developer in the United States is evaluating the financial viability of a new, large utility-scale wind farm in a location with a very high capacity factor. The project's profitability is highly dependent on a long-term, performance-based incentive that provides a per-kilowatt-hour tax credit for the electricity generated. Which federal policy mechanism does this describe?

Accepted Answer

Production Tax Credit (PTC)

Answer

Renewable Energy Certificate (REC) arbitrage

Answer

Modified Accelerated Cost Recovery System (MACRS)

Answer

Investment Tax Credit (ITC)

Question 3

Which of the following policy mechanisms is designed to provide long-term price certainty to renewable energy producers by guaranteeing a fixed, above-market price for the electricity they sell to the grid, often for a period of 15-20 years?

Accepted Answer

Feed-in Tariff (FIT)

Answer

Competitive reverse auctions

Answer

Net Metering

Answer

Renewable Energy Certificate (REC) markets

Question 4

A grid operator is facing challenges with the 'duck curve,' where high midday solar generation suppresses net load, followed by a steep ramp-up in demand as the sun sets. Which policy would most directly incentivize customers to shift their electricity consumption to the midday hours, helping to align demand with solar generation?

Accepted Answer

Time-of-Use (TOU) rates

Answer

A flat, fixed electricity rate

Answer

A mandate for higher solar panel efficiency

Answer

A renewable energy production tax credit

Question 5

What is the primary function of a Renewable Energy Certificate (REC) in energy markets and policy?

Accepted Answer

To track and assign ownership of the environmental attributes of one megawatt-hour of renewable electricity generation.

Answer

To provide a direct government subsidy for manufacturing renewable energy components.

Answer

To represent the physical delivery of specific electrons from a renewable generator to a consumer.

Answer

To finance the construction of new interstate transmission lines for renewable energy.

Question 6

Which of the following represents a significant non-financial policy barrier that can delay or prevent the development of new, large-scale renewable energy projects such as wind farms or transmission lines?

Accepted Answer

Complex and lengthy permitting and siting processes

Answer

High cost of capital for new technologies

Answer

Availability of federal tax incentives

Answer

Declining costs of solar PV and wind turbines