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Securing a predictable market

Done right, a Renewables Portfolio Standard law, known in Europe as a tradable renewables obligation, can achieve the swift penetration of wind power into competitive markets at least possible cost. Evidence to support that claim is currently being provided by Texas. But done wrong, the policy can become a disaster area. With new opportunities opening up in carbon emissions trading (page 22), a properly constructed RPS is now also needed to help position wind in the market for sales of pollution offsets.

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