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Ohio (US-OH)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~474 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources, no mandatory RPS

1. Overview​

Ohio operates a deregulated electricity market where consumers can choose a retail energy supplier, though distribution remains a regulated monopoly managed by the Public Utilities Commission of Ohio (PUCO) [5]. The state is part of the PJM Interconnection regional grid, which manages wholesale transmission across 13 states [5]. As of late 2025, average retail electricity prices reached approximately 13.23¢/kWh, driven by rising demand from data centers and a tightening regional power supply [5].

The generation mix remains heavily reliant on fossil fuels. Natural gas is the primary source, providing over 40% of net generation, followed by coal (24–36%) and nuclear (13%) [2][5]. Renewable energy accounts for approximately 5.3% of total in-state utility-scale generation as of 2024 [1]. While wind and solar capacity are growing—specifically solar output which more than doubled in 2024 to 4,021 GWh—Ohio ranks 46th nationally for renewable electricity share [1].

Due to this reliance on fossil fuels, the state's carbon intensity is high, approximately 470 gCO2eq/kWh (2024/2025), ranking Ohio 13th highest in the U.S. for emission rates [2]. Current policy mandates that 8.5% of electricity sold by investor-owned utilities come from renewable sources by 2026 [1], though recent legislative debates (e.g., SB 294) suggest potential shifts toward prioritizing "reliable" energy sources that could impact future clean energy development [1]. Major utilities serving the state include AEP Ohio, FirstEnergy, AES Ohio, and Duke Energy Ohio [5].

2. Market Structure​

Ohio's electricity market utilizes a deregulated system known as retail choice, allowing residents and businesses to select their own electric generation supplier while the local utility retains responsibility for distribution and delivery 1. This structure separates the supply of electricity from the maintenance of power lines and outage management 2. Customers can use the "Price to Compare" (PTC)—the utility's default rate—as a benchmark when shopping for Certified Retail Electric Suppliers (CRES) on the Energy Choice Ohio "Apples to Apples" comparison tool 2.

The state features a mix of utility providers: Investor-Owned Utilities (IOUs) such as AEP Ohio, AES Ohio, Duke Energy Ohio, and FirstEnergy; Municipal Electric Utilities like Cleveland Public Power; and Electric Cooperatives including Buckeye Power 3. While Municipal utilities and Cooperatives are generally not regulated by the Public Utilities Commission of Ohio (PUCO), IOUs are fully regulated by the commission 4. Many communities also utilize governmental aggregation, where local officials negotiate bulk rates for residents 2.

Grid reliability and wholesale market operations are managed by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). The majority of Ohio falls under the jurisdiction of PJM Interconnection, while some northwestern portions are served by the Midcontinent Independent System Operator (MISO) 5. These non-profit organizations manage the high-voltage transmission system and operate competitive wholesale markets but do not own physical infrastructure or bill customers directly 6.

3. Clean Energy Policy​

Renewable Portfolio Standard (RPS) Ohio's Renewable Portfolio Standard (RPS), established in 2008, has been significantly scaled back. The current final target requires 8.5% renewable energy by 2026, reduced from the original 12.5% goal. Under House Bill 6 (2019), the standard is set to sunset after the 2026 compliance year with no further benchmarks 78. This standard applies to investor-owned utilities (IOUs) and competitive retail electric service (CRES) providers, but not municipal utilities or cooperatives. Compliance is achieved through Renewable Energy Certificates (RECs), with costs recovered via an Alternative Energy Rider (AER) 9. Additionally, the specific solar carve-out was eliminated in 2020, reduced to 0% 8.

Energy Efficiency and Mandates House Bill 6 (2019) also weakened energy efficiency standards, lowering the cumulative energy savings goal from 22% by 2027 to 17.5% for full compliance 10. Recent legislation has shifted the state's focus toward "technology-neutral" energy production. Notably, House Bill 507 (2022) reclassified natural gas as "green energy" (though it does not qualify for RECs), and House Bill 308 (2024/2025) designated nuclear power as a clean energy source 11.

Restrictions on Development State policy has introduced barriers to new renewable energy development. Senate Bill 52 (2021) empowers county governments to restrict or ban large-scale wind and solar projects. As of early 2026, pending legislation (Senate Bill 294) proposes defining "reliable energy" as having a 50% capacity factor, which critics argue would effectively ban new utility-scale wind and solar projects due to their typical lower capacity factors 1213.

Local and Utility Goals Ohio does not have a statewide net-zero mandate. However, major cities have established independent goals, including Columbus (carbon neutrality by 2050), Cleveland (net-zero by 2050), and Cincinnati (100% renewable energy by 2035) 14. Major utilities such as Duke Energy, FirstEnergy, and Dominion Energy have committed to net-zero carbon emissions by 2050, while AEP maintains an "aspirational" goal 15.

4. Utility Landscape​

Ohio's electric utility landscape is composed of investor-owned utilities (IOUs), electric cooperatives, and municipal utilities. The market is dominated by four major electric distribution utilities (EDCs), with AEP Ohio identified as the largest utility by customer count [1]. The state ranks as the 7th largest electricity producer and the 4th largest electricity consumer in the United States [1].

Investor-Owned Utilities (IOUs) The state features six major electric IOUs regulated by the Public Utilities Commission of Ohio (PUCO). The primary distribution utilities include:

  • AEP Ohio (American Electric Power)
  • AES Ohio (formerly Dayton Power & Light)
  • Duke Energy Ohio
  • FirstEnergy Corp. (Operating Companies) [1][3]

Electric Cooperatives Ohio hosts 25 non-profit, member-owned electric cooperatives serving approximately 380,000 to 400,000 homes and businesses across 77 counties. Most receive power from Buckeye Power, Inc. Unlike IOUs, cooperatives are not regulated by the PUCO regarding rates and service standards [2].

Municipal Electric Utilities Municipalities have the authority to own and operate electric systems under the Ohio Constitution. These city-owned, non-profit systems (such as Cleveland Public Power and the Columbus Department of Public Utilities) are also exempt from PUCO regulation [2].

Generation Mix Natural gas is the dominant source of electricity generation in Ohio, accounting for roughly 46% of the state's mix, followed by nuclear power at 13–18% [1].

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
The largestHydro105✅ Yes (pre-RPS)Legacy hydro

6. EAC/REC Registry Infrastructure​

Ohio does not operate a state-run renewable energy certificate (REC) registry. Instead, the tracking process is a two-step system managed by the Public Utilities Commission of Ohio (PUCO) and regional electronic tracking systems [2].

Certification and Eligibility Before RECs can be tracked, generators must be certified as an eligible "Renewable Energy Resource" by the PUCO. Upon approval, the facility receives an Ohio certification number, which is required to sell RECs for compliance with the state's Alternative Energy Portfolio Standard [2].

Primary Tracking Systems Once certified, generators must register with a regional attribute tracking system to mint, track, and trade certificates:

  • PJM-GATS (Generation Attribute Tracking System): Operated by PJM Environmental Information Services (PJM EIS), this is the primary electronic registry used for the PJM Interconnection region, which includes Ohio. It is the dominant system for Ohio-based generation [1][2][3].
  • M-RETS (Midwest Renewable Energy Tracking System): A regional registry that also covers Ohio. It is frequently used for voluntary REC transactions and for resources located in the western parts of the state [1][2].

Operational Details

  • Certificate Definition: One REC represents 1 megawatt-hour (MWh) of renewable electricity delivered to the grid [2][3].
  • Tracking Lifecycle: The systems assign unique serial numbers to every MWh generated to prevent double-counting. Key actions include issuance (creation), transfer (trading between account holders), and retirement (permanent cancellation to claim renewable energy use for compliance or sustainability goals) [3].
  • Solar Specifics: Solar Renewable Energy Certificates (SRECs) are tracked similarly within these systems but often carry different market values. As of 2025, the Solar Alternative Compliance Payment (SACP) is set at a minimum of $50/MWh [2].

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Energy Choice Ohio (.gov) ↩

  2. www.directenergy.com ↩ ↩2 ↩3

  3. Ohio Legislative Service Commission (.gov), Energy Star (.gov) ↩

  4. Ohio Legislative Service Commission (.gov) ↩

  5. Thomson Reuters +1, Wikipedia ↩

  6. Federal Energy Regulatory Commission (.gov) +6, Federal Energy Regulatory Commission (.gov) ↩

  7. Practical Law UK ↩

  8. National Conference of State Legislatures ↩ ↩2

  9. Public Utilities Commission of Ohio (.gov) ↩

  10. WOSU Public Media ↩

  11. Signal Ohio ↩

  12. Great Lakes Now ↩

  13. Inside Climate News ↩

  14. Atlantic Council ↩

  15. Duke Energy | News Center ↩