In the global renewable energy certificate market certification issued in 2020 was 2,175,813 certificates and is anticipated to register CAGR of 20.2% from 2021-2028.
Increasing government approach towards shifting to renewable energy, high investment for projects development, and increasing awareness among consumers are major factors expected to drive the growth of global renewable energy certificate market. The government is implementing various regulations in order to promote the use of renewable energy resources. According to Indian Electricity Act of 2003, all electricity distribution licensees have to purchase or produce a minimum small/specific quantity of their requirements from Renewable Energy Sources as made mandatory by Renewable Purchase Obligation (RPO). Rising concern related to growing CO2 emission and approach towards shifting the energy generation from solar, wind, biomass sources are factors expected to impact the growth of renewable energy certificate market.
Rising energy demand across the globe and an increase in electricity prices is resulting in slow shift towards growing of renewable energy share. According to the U.S. Department of Energy's (DOE) Energy Information Administration (EIA) and the Union of Concerned Scientists (UCS), supplying 10% of the country's electricity from renewable sources by 2020 would result in consumer savings ranging from US$22.6 billion to US$37.7 billion in lower electricity and natural gas bills. Government approach towards securing the energy crisis and stabilize the economy is expected to encourage the global renewable energy certificate market growth. Favorable business policies are attracting players towards setting up clean energy projects in emerging economies. According to ORF statistics, India is becoming a preferred destination for renewable investment, with nearly US$64 Bn invested in the renewable energy sector in the last six years. In 2021, Reliance Industries, with the focus to boost the renewable energy sector invested US$ 10.7 billion in green energy segment.
Lack of developed infrastructure in developing countries, challenges in connecting to the grid and lack of funding are factors expected to hamper the growth of global market. According to Observer Research Foundation, India's annual installations fell in 2019 due to India's economic slowdown, tariff caps, and higher costs associated with tender participation, payment delays, and renegotiation of public-private agreements in some States. In addition, lack of awareness among consumers related to renewable energy generation is expected to challenge the growth of target market. However, increasing investment by the government for the development of smart electricity infrastructure, approach towards growing awareness among consumers, and favorable business policies for clean energy adoption are factors expected to create new opportunities for the growth of global market over the forecast period. In addition, the deployment of new renewable energy projects to lower the dependency on natural resources is expected to support the transaction of the target market.
|Renewable Energy Certificate Market
|2017 - 2028
|2021 - 2028
|By End Use and By Geography
|North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
|Key Companies Profiled
Central Electricity Regulatory Commission (CERC), Environment Protection Agency (EPA), General Services Administration (GSA), Western Area Power Administration (WAPA), Renewable Choice Energy, and Bonneville Environmental Foundation.
|Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis
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Renewable Energy Certificate Market Segment Analysis, 2020
The end-user segment of the global renewable energy certificate market is segmented into solar, wind, geothermal, hydropower, biomass, and others. In 2020, the hydropower segment accounted for 30.3% share in the global market. Hydropower capacity has increased by a net of 431 MW since 2017, with total net growth of 1,688 MW from 2010 to 2019. The solar segment is expected to account for a noticeable share in the market. The use of solar energy on global level is extensively increasing for generating electricity or heating and desalinating water. The energy is generated majorly by two ways Photovoltaics (PV) and concentrated solar power (CSP).
Players operating in the global renewable energy certificate market are Central Electricity Regulatory Commission (CERC), Environment Protection Agency (EPA), General Services Administration (GSA), Western Area Power Administration (WAPA), Renewable Choice Energy, and Bonneville Environmental Foundation.
Market By End Use:
Market By Geography
In 2020, 2,175,813 Mwh certifications were issues in the global renewable energy certificate market
The CAGR of the global renewable energy certificate market from 2021-2028 is above 20.2%.
Prominent players operating in the target market are Central Electricity Regulatory Commission (CERC), Environment Protection Agency (EPA), and General Services Administration (GSA).
Asia Pacific dominated the global renewable energy certificate market in terms of certifications.
Asia Pacific exhibited the fastest growing CAGR for the forecast period of 2021 to 2028
Increasing government focus towards renewable energy sources, high investment for projects development, and increasing awareness among consumers are major factors expected to drive the growth of global renewable energy certificate market.
In end use the hydropower molding machine segment held the maximum share.