Renewable Energy Certificates Market Size Projected to Garner USD 186.6 Billion by 2032 growing at 24.7% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

The Global Renewable Energy Certificates (REC) Market Size is predicted to reach USD 186.6 Billion by 2032 from USD 16.2 Billion in 2022, at a CAGR of 24.7% between 2023 and 2032, as per the Acumen Research and Consulting

In recent years, the demand for Renewable Energy Certificates (RECs) has grown significantly as more organizations seek to meet their sustainability goals and reduce their carbon footprint. According to the National Renewable Energy Laboratory, the US REC market grew from approximately 10 million MWh in 2010 to over 170 million MWh in 2020. This growth can be attributed to a variety of factors, including increasing renewable energy capacity and declining costs, increased corporate sustainability commitments, and government policies supporting renewable energy development.

Renewable Energy Certificates (RECs) are a tradable commodity that represents proof that one megawatt-hour (MWh) of electricity was generated from a renewable energy source. Essentially, RECs allow individuals, organizations, and governments to support renewable energy without physically purchasing or installing renewable energy infrastructure. Instead, RECs function as a market-based solution for promoting renewable energy development and mitigating carbon emissions. The growth of the REC market has also led to the development of innovative financing structures, such as virtual power purchase agreements (VPPAs), which allow organizations to directly support the development of new renewable energy projects by purchasing RECs from specific projects. This has led to a significant increase in the number of large-scale renewable energy projects being developed, particularly in the corporate sector.

Renewable Energy Certificates Market Growth

Renewable Energy Certificates Market Statistics                                   

  • Global renewable energy certificates market value was worth USD 16.2 Billion in 2022, with a 24.7% CAGR from 2023 to 2032
  • North America renewable energy certificates market share occupied around 42% in 2022
  • Europe renewable energy certificates market growth will record a CAGR of more than 25% from 2023 to 2032
  • In India, the Ministry of New and Renewable Energy (MNRE) reports that the total installed renewable energy capacity as of February 2022 was 98.5 GW, which represents about 28% of the country's total installed power capacity
  • Rising demand for carbon neutrality and corporate sustainability, propel the renewable energy certificates market revenue

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Renewable Energy Certificates Market Trends               

The renewable energy certificate (REC) market is a dynamic and rapidly evolving space, driven by a range of trends that are shaping the future of renewable energy. One of the most significant trends is the increasing demand for renewable energy from large corporate buyers. Many companies are setting ambitious sustainability targets, and are looking to purchase RECs as a way to achieve their goals. This has led to a surge in demand for RECs, which in turn is driving investment in renewable energy projects.

Another trend in the REC market is the emergence of new types of certificates, such as carbon offsets and green bonds. Carbon offsets are a way for companies to offset their emissions by investing in projects that reduce or avoid greenhouse gas emissions. Green bonds are a way for companies to raise funds for renewable energy projects, which can then be used to generate RECs. These new types of certificates are broadening the range of options available to buyers, and are driving innovation in the market.

Moreover, the increasing use of emerging technology to facilitate the trading and tracking of RECs is driving market growth. Blockchain technology, for example, is being used to create more transparent and secure trading platforms for RECs. This is important because it helps to build trust in the market and makes it easier for buyers and sellers to participate. In addition, artificial intelligence and machine learning are being used to analyze data on energy production and consumption, which can help buyers make more informed decisions about their purchases.

Renewable Energy Certificates Market Segmentation   

Acumen Research and Consulting has segmented the global renewable energy certificates market by energy type, end use, and region.

  • By energy type, the industry is categorized into solar energy, hydro-electric power, wind power, and gas power.
  • By end use, the market is divided into voluntary, and compliance.
  • By region, the market is classified into Asia-Pacific, North America, Europe, Latin America, and the MEA.

Renewable Energy Certificates Market Regional Overview      

According to the renewable energy certificates industry analysis, Europe is one of the fastest-growing regions in the market, driven by a range of factors that are making the continent an attractive destination for investors and buyers alike. One of the main reasons for Europe's growth in this market is the strong commitment to renewable energy and sustainability by European governments and institutions. The European Union has set a target of achieving 32% renewable energy consumption by 2030, and many countries are implementing policies and incentives to promote renewable energy development. Another factor driving growth in Europe is the increasing demand for renewable energy from corporate buyers. Many companies in Europe are setting ambitious sustainability targets, and are looking to purchase RECs as a way to achieve their goals. This has led to a surge in demand for RECs, which in turn is driving investment in renewable energy projects.

Renewable Energy Certificates Market Players                                      

Some of the prominent renewable energy certificates market companies are 3Degrees Group, Inc., Renewable Choice Energy, 3 Phases Energy Services, ECOHZ, First Environment, Inc., Schneider Electric SE, Enel Green Power, NextEra Energy Resources, LLC, NRG Energy, Inc., Dominion Energy Solutions, Green-e Energy, and NativeEnergy.

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Acumen Research and Consulting

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