Skip to main content

Vermont (US-VT)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~288 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources, regulated market structure

1. Overview​

Vermont operates a vertically integrated, regulated electricity market, distinguishing it as the only state in New England without retail competition. Under this structure, 17 distribution utilities serve as regulated monopolies, managing the entire service chain from supply to retail under the oversight of the Vermont Public Utility Commission 1. The state's transmission system is maintained by the Vermont Electric Power Company (VELCO), which is collectively owned by the distribution utilities 1.

Vermont possesses one of the cleanest electric grids in the United States. As of early 2026, nearly 100% (99.8%) of in-state generation comes from renewable sources, led by hydroelectric (51–53.5%), biomass (16–18.9%), wind (14–17%), and solar (10.5–18%) 2. However, the state imports approximately 73% of its total electricity supply, primarily carbon-free hydropower from Hydro-Québec in Canada 2. When accounting for these imports and the regional mix, the carbon intensity of electricity consumed in the state is approximately 279 gCO2eq/kWh, compared to roughly 3.8 gCO2/kWh for in-state generation alone 3 2.

Legislatively, Vermont has enacted aggressive mandates to further decarbonize its grid. The Renewable Energy Standard (RES), updated by Act 179 in June 2024, requires utilities to source 63% of retail sales from renewables by 2025. The law mandates 100% renewable electricity by 2030 for the state's largest utility (Green Mountain Power) and by 2035 for others 4. Additionally, the Global Warming Solutions Act (GWSA) leverages the clean electric grid—which contributes less than 6% of the state's total GHG emissions—to decarbonize high-emission sectors like transportation and heating 5 5.

⚠️ Note on Import Data: Search results provide conflicting figures for electricity imports, citing both approximately 60% 3 and 73% 2.

2. Market Structure​

Vermont maintains a fully regulated electricity market and does not offer retail choice for residential customers, making it the only state in New England that has not restructured its electric industry to allow for retail competition [3]. The state's electric industry consists of 17 distribution utilities, which operate as vertically integrated monopolies responsible for supply, transmission, and retail services. These utilities are categorized into three ownership structures:

  • Investor-Owned Utilities (IOU): There is one IOU, Green Mountain Power (GMP), which serves approximately 80% of the state’s customers (over 260,000). GMP is a subsidiary of Énergir and earns a return on capital investments [2].
  • Member-Owned Cooperatives: Two non-profit cooperatives serve the state: the Vermont Electric Cooperative (VEC), the largest locally owned utility serving 75 towns, and Washington Electric Cooperative (WEC) [2].
  • Municipal Utilities: Fourteen municipal electric departments operate under local control. The largest is the Burlington Electric Department (BED). Additionally, the Vermont Public Power Supply Authority (VPPSA) provides services and power supply for 11 of these municipal utilities [2].

While retail supply is regulated, Vermont utilities participate in regional wholesale markets managed by ISO New England (ISO-NE). ISO-NE acts as the Regional Transmission Organization (RTO) and Independent System Operator (ISO) for the state, ensuring grid reliability and administering competitive wholesale markets [3]. High-voltage transmission is operated by the Vermont Electric Power Company (VELCO), which is jointly owned by the state's 17 distribution utilities [2].

3. Clean Energy Policy​

Vermont's primary clean energy mandate is the Renewable Energy Standard (RES), which was significantly expanded in June 2024 under Act 179 (H.289). The law mandates that all electric utilities in the state transition to 100% renewable electricity by 2035, replacing the previous 75% goal 67.

Key Requirements and Tiers The RES utilizes a five-tier system to ensure a diverse energy mix:

  • Tier I: Total Renewable Energy requirement.
  • Tier II: Distributed Renewable Generation (In-State requirement).
  • Tier III: Energy Transformation.
  • Tier IV: New Renewable Energy (established in 2024).
  • Tier V: Load Growth (established in 2024) 8.

Timelines and Targets The transition to 100% renewable electricity follows a staggered timeline based on utility size:

  • 2030: Deadline for the state's largest utilities, Green Mountain Power and Vermont Electric Coop.
  • 2035: Deadline for all other retail electricity suppliers.
  • In-State Generation: The law doubles the requirement for in-state renewable procurement from 10% to 20% 9.
  • Solar: The state aims to source 20% of electricity from solar by 2025 9.

Compliance and Eligibility Utilities comply by retiring Renewable Energy Credits (RECs). If targets are missed, utilities must pay Alternative Compliance Payments (ACPs) into the Clean Energy Development Fund. In 2024, these rates were approximately $0.012/kWh for Tier I and $0.073/kWh for Tiers II and III 8.

Eligible sources include solar, wind, and existing small-scale hydro. New large-scale hydropower (over 200 MW) and most new biomass plants are excluded from meeting new renewable targets. Small-scale ground-mount solar (under 25 kW) qualifies for expedited registration starting July 2025 10.

Broader Climate Goals Under the Global Warming Solutions Act (2020), Vermont has legally binding emission reduction targets:

  • 2025: 26% below 2005 levels.
  • 2030: 40% below 1990 levels.
  • 2050: 80% below 1990 levels with a goal of net-zero emissions across all sectors 1111.

Related Legislation

  • Climate Superfund Act (Act 122): Enacted in 2024, requiring major fossil fuel companies to pay for climate-related damages in Vermont 12.
  • Clean Heat Standard: Although passed in 2023 as the Affordable Heat Act, the specific "Clean Heat Standard" program was officially closed by regulators in early 2026 after the legislature failed to take a final implementation vote 12.

4. Utility Landscape​

Vermont's electric utility sector consists of 17 local distribution utilities, a mix of investor-owned, cooperative, and municipal entities 1. The landscape is dominated by Green Mountain Power (GMP), the state's only investor-owned utility (IOU), which serves roughly 80% of all Vermont customers (over 270,000) 113.

The remaining market is served by consumer-owned entities:

  • Electric Cooperatives: There are two primary cooperatives. Vermont Electric Cooperative (VEC) is the second-largest utility overall and the largest co-op, serving over 33,000 members in northern Vermont 114. Washington Electric Cooperative (WEC) serves approximately 11,000 people in central and northern Vermont 114.
  • Municipal Utilities: Vermont has 15 municipal electric departments owned by local governments 15. The largest municipally owned utility is the Burlington Electric Department (BED), serving the city of Burlington and the Burlington International Airport 1.

Key infrastructure includes VELCO (Vermont Electric Power Company), which operates the state's high-voltage transmission grid and is collectively owned by the state's distribution utilities 1. Additionally, Efficiency Vermont operates as the nation's first statewide energy efficiency utility 16.

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
Large Hydroelectric (aggregate)Hydro197✅ Yes (pre-RPS)Legacy hydro facilities
including the MooreHydro197✅ Yes (pre-RPS)Legacy hydro
Moore Dam is the largest conventional hydroelectricHydro197✅ Yes (pre-RPS)Legacy hydro
Moore Dam is the largest conventionalHydro197✅ Yes (pre-RPS)Legacy hydro

6. EAC/REC Registry Infrastructure​

Vermont does not operate a standalone state-run registry for Renewable Energy Certificates (RECs). Instead, the state utilizes the regional New England Power Pool Generation Information System (NEPOOL-GIS) as its primary platform to issue, track, and manage RECs for all generation within the state [2]. This system ensures that every megawatt-hour (MWh) of electricity generated is assigned a unique serial number to prevent double-counting and tracks essential data such as facility location, fuel type, and vintage (month and year of production) [1][3].

Vermont employs a "book-and-claim" accounting method, which separates the environmental attributes of electricity from the physical power [3]. Under this system, RECs are "minted" upon generation to the ISO New England grid and are ultimately "retired" within the registry to demonstrate compliance or substantiate voluntary claims [1][3].

While NEPOOL-GIS handles the tracking of the certificates themselves, regulatory compliance is managed through the Vermont Public Utility Commission's (ePUC) online portal, where electric distribution utilities must file annual Renewable Energy Standard (RES) reports [2]. Additionally, the state requires third-party independent verifiers to record and report production figures to NEPOOL-GIS for residential or small-scale systems to ensure accurate REC creation [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. Vermont.gov ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  2. U.S. Energy Information Administration (EIA) (.gov) ↩ ↩2 ↩3 ↩4

  3. Efficiency Vermont ↩ ↩2

  4. Vermont Public Utility Commission (.gov) ↩

  5. Vermont Agency of Transportation (VTrans) (.gov) ↩ ↩2

  6. Vermont Legislature (.gov) ↩

  7. Renewable Energy Vermont ↩

  8. Database of State Incentives for Renewables & Efficiency ↩ ↩2

  9. Clean Energy States Alliance (CESA) ↩ ↩2

  10. Downs Rachlin Martin ↩

  11. Climate Change in Vermont (.gov) ↩ ↩2

  12. Canary Media ↩ ↩2

  13. Department of Energy (.gov) ↩

  14. Vermont Electric Coop ↩ ↩2

  15. vppsa.com ↩

  16. Vermont Electric Power Company | VELCO ↩