Dive Brief:
- The Public Utilities Commission of Ohio has determined that utilities in the state no longer need to source half of their renewable energy from in-state providers.
- The decision is bad news for the state's solar energy industry, which saw its growth stall when the Ohio legislature passed SDB 310, freezing renewables targets. Renewable resources generated in Ohio will now have to compete with credits that power companies can purchase from out-of-state sources to meet renewable mandates.
- Over the summer, the state froze renewable targets through 2025 but it had been unclear how the legislation impacted mandates to procure in-state green power. PUCO determined that requirement was put on hold as well.
Dive Insight:
When Ohio passed SB 310 in July, putting on hold for two years a requirement that 25% of the state's power be provided from renewable sources, it largely halted the state's solar industry. But the legislation was not clear on whether requirements that half of that generation be come from within the state remained in place, until now. The state's utility regulators have determined the law did away with the in-state sourcing requirement as well, dealing another blow to the state's struggling green power industry.
"Pure financial projects are on hold right now," Geoff Greenfield, president of Third Sun Solar in Athens, told Columbus Business First.
While some legislators believed the state did not intend to strike down the in-state requirement, others argued it was unconstitutional. The decision means in-state renewable production must now compete with credits from nearby out-of-state sources, many of which are located in states without renewables mandates. Solar companies and other Ohio renewables businesses are concerned this will mean they will not be able to supply electricity at a competitive rate.