Renewable Energy Certificate (REC) Market (Energy Type - Wind power, Solar energy, Gas power, Biomass energy, Geothermal energy, Hydroelectric power, and Others; Capacity - 1 MW and below, 1 MW - 5 MW, 5 MW - 10 MW, and 10 MW and above; End-use Industry - Voluntary, and Compliance): Global Industry Analysis, Trends, Size, Share and Forecasts to 2032

A recent report published by Infinium Global Research on renewable energy certificate (REC) market provides in-depth analysis of segments and sub-segments in the global as well as regional renewable energy certificate (REC) market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional renewable energy certificate (REC) market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global renewable energy certificate (REC) market.

Market Insight:

The global renewable energy certificate (REC) market was valued at USD 1.78 billion in 2023 and is expected to reach USD 14.98 billion in 2032, with a CAGR of 27.62% during the forecast period of 2024-2032.

A renewable energy certificate (REC) is a tradable, intangible commodity that serves as evidence that one megawatt-hour (MWh) of electricity has been generated from a qualifying renewable energy source, such as wind, solar, hydro, biomass, or geothermal. In recent years, the REC market has witnessed substantial growth and transformation, driven by the escalating global demand for clean energy and heightened sustainability commitments. A notable trend is the increasing corporate procurement of RECs, as companies strive to meet their ambitious renewable energy and carbon neutrality objectives. The voluntary market is expanding at an accelerated pace, with organizations across diverse industries committing to 100% renewable energy through RECs, often as a cornerstone of their environmental, social, and governance (ESG) strategies. The global expansion of the REC market is further bolstered by advancements in certification standards, which are increasingly emphasizing the assurance of environmental integrity and the principle of additionality within RECs. As the world transitions toward a low-carbon future, the REC market is becoming an indispensable instrument for both regulatory compliance and voluntary sustainability efforts, epitomizing the broader shift towards cleaner and more sustainable energy sources.

The growing demand for renewable energy is driving significant expansion in the renewable energy certificate (REC) market. Rising interest in renewable sources is leading to more projects and increased REC generation, attracting a wider range of participants focused on sustainability. Investments in renewable initiatives, supported by incentives and policies, boost REC availability and market growth. Additionally, the global shift towards renewables is also stimulating REC markets in emerging economies and boosting market expansion. These factors collectively enhance market production, diversity, and expansion. Moreover, corporate sustainability initiatives are rapidly driving growth in the renewable energy certificate (REC) market through key mechanisms such as corporate commitments, voluntary purchases, and funding. Companies are increasingly investing in RECs to meet carbon neutrality goals, expanding the voluntary market, and influencing trends in renewable energy projects. These investments are enhancing REC generation and market growth while driving improvements in transparency and certification standards. Collectively, these factors are creating a more dynamic, resilient REC market and supporting robust expansion. However, regulatory and policy uncertainty in the renewable energy certificate (REC) market hampers growth due to unpredictable rules and inconsistent standards. Variations in certification processes are creating a fragmented market and complicating cross-border transactions. Frequent policy shifts and evolving standards contribute to market instability and confusion about REC validity. These issues are undermining investor confidence, slowing growth, and creating inefficiencies, which is constraining market expansion. Furthermore, innovations in the renewable energy certificate (REC) market are expected to create substantial opportunities. Technologies such as blockchain and smart contracts will enhance transparency and efficiency by enabling secure, automated verification. Additionally advances in automation, remote sensing, and data analytics will streamline certification and improve market integrity. Moreover, new market models, such as virtual power purchase agreements (VPPAs) and dynamic pricing, will offer flexible trading options. These advancements will drive significant market growth in the coming years, by improving efficiency and meeting rising renewable energy demand.

The North America region holds the largest market share in the renewable energy certificate (REC) market. In the United States, the REC market is predominantly influenced by state-level renewable portfolio standards (RPS), which mandate the procurement of renewable energy and result in substantial REC trading volumes in states such as California, Texas, and New York. Additionally, the voluntary REC market is experiencing rapid expansion across North America as businesses and corporations endeavor to achieve ambitious sustainability and carbon neutrality goals. Looking ahead, the Asia-Pacific region is projected to exhibit the fastest growth rate in forecast years, driven by robust economic expansion that leads to increased energy consumption. This economic growth fosters a rising demand for sustainable energy solutions, thereby elevating the need for renewable energy and RECs. Furthermore, nations within Asia-Pacific, including China, India, and Japan, are setting ambitious renewable energy targets as part of their commitments under international climate agreements. These targets are poised to stimulate substantial investment in renewable energy projects and REC markets, catalyzing significant growth in the region over the coming years.

Report Scope of the Renewable Energy Certificate (REC) Market:

Segment wise revenue contribution in the global renewable energy certificate (REC) market

The report on global renewable energy certificate (REC) market provides a detailed analysis of segments in the market based on Energy Type, Capacity, and End-use Industry.

Segmentation Based on Energy Type

·       Wind power

·       Solar energy

·       Gas power

·       Biomass energy

·       Geothermal energy

·       Hydroelectric power

·       Others

Segmentation Based on Capacity

·       1 MW and below

·       1 MW - 5 MW

·       5 MW - 10 MW

·       10 MW and above

Segmentation Based on End-use Industry

·       Voluntary

·       Compliance

Company Profiled:

·       ACX (AirCarbon Exchange)

·       APX

·       Center for Resource Solutions (CRS)

·       NextEra Energy Resources, LLC.

·       TATA Power Trading Company Limited

·       South Pole

·       Western Area Power Administration

·       General Services Administration

·       Sterling Planet

·       EDF Energy

Report Highlights:

The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the renewable energy certificate (REC) market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.