Global Renewable Energy Certificate (REC) Market Size is valued at USD 25.3 Bn in 2024 and is predicted to reach USD 69.1 Bn by the year 2034 at a 10.8% CAGR during the forecast period for 2025-2034.
A Renewable Energy Certificate (REC) is a significant certificate representing the environmental and social benefits of one megawatt-hour of electricity generated from renewable sources like wind, solar, or hydro. RECs allow buyers, such as businesses or utilities, to claim renewable energy use without directly consuming it, supporting clean energy development and tracking production through a market-based system. This market promotes the growth and integration of renewable energy into the electricity grid by allowing businesses and people to buy RECs, meet regulatory requirements, and accomplish sustainability goals. The demand for renewable natural gas (RNG) certificates is rising in the renewable energy certificate market. Similar to solar and wind energy, RNG has positive environmental effects.
The addition of RNG certificates to the REC market is anticipated to increase the supply of renewable qualities in order to satisfy the rising demand for sustainable energy. Furthermore, the demand for RECs is anticipated to rise sharply as more green data centres switch to renewable energy sources. Large data centres, in particular, use a lot of electricity, and their dedication to renewable energy might lead to significant REC purchases. One of the main issues is that different regions have varied regulations, which makes it harder to conduct business in the market and makes investors uneasy.
Furthermore, the market is hindered by a lack of consumer knowledge and comprehension of renewable energy certificates, which restricts demand and market penetration. On the other hand, areas with recently set renewable energy objectives and laws are seeing an increase in market opportunities. Businesses that can provide scalable and creative certificate solutions stand a good chance of gaining a sizable portion of the market.
Competitive Landscape
Some Major Key Players In The Renewable Energy Certificate (REC) Market:
- AFS Energy B.V.
- Climate Impact Partners Limited
- 3Degrees, Inc.
- Ecohz AS
- REDEX Pte. Ltd.
- Shell Energy North America (US), L.P.
- ENGIE S.A.
- Evolugen by Brookfield Renewable
- EDF Trading Limited
- Grid Controller of India Limited (GRID-INDIA)
- Enel S.p.A.
- Statkraft AS
- Sterling Planet, Inc.
- South Pole Holding AG
- STX Commodities B.V
- Other Market Players
Market Segmentation:
The Renewable Energy Certificate (REC) market is segmented based on capacity, energy type, and end-use. The capacity segment is further segmented into up to 1,000 KWH, 1,001-5,000 KWH, and above 5,000 KWH. By energy type, the market is segmented into solar power, wind power, hydropower, biomass, and Others. By end-use, the market is segmented into compliance and voluntary.
Based On The Energy Type, The Solar Power Segment Is Accounted As A Major Contributor To The Renewable Energy Certificate (REC) Market
The solar power category is expected to hold a major global market share in 2024. Solar power is more affordable than conventional fossil fuel-based electricity generation thanks to improvements in solar panel efficiency, economies of scale, and manufacturing innovations. This has caused a global increase in the installation of solar energy projects since solar has grown in popularity as a way for utilities, companies, and homeowners to lower their energy expenses and carbon impact. Furthermore, encouraging government initiatives, including tax breaks, renewable energy requirements, and solar energy objectives, have supported the expansion of the solar energy market.
Compliance Segment To Witness Growth At A Rapid Rate
The compliance category dominates the market for renewable energy certificates since major industrial businesses purchase renewable energy credits to offset their greenhouse gas emissions. For major energy utility businesses worldwide to be eligible for some government policies to offset their carbon footprint, they must have a specific percentage of renewable energy credits. Large manufacturing corporations like Tesla, Microsoft, Google, and others have a minimal requirement to obtain renewable energy credits in order to offset their greenhouse gas emissions, particularly in the United States. Furthermore, the government's policies to mitigate greenhouse gas emissions and the rise in energy consumption are two other important factors driving market expansion.
In The Region, North America Renewable Energy Certificate (REC) Market Holds A Significant Revenue Share.
North America Energy Certificate (REC) market is expected to register the highest market share in revenue in the near future because of its established policy frameworks, robust corporate sustainability pledges, quick expansion of renewable energy capacity, encouraging government incentives, and developed trading infrastructure. Significant demand for RECs has been created by the region's implementation of strong renewable portfolio standards and other regulations that encourage utility-scale buying of renewable energy. Furthermore, a number of major companies with regional headquarters have committed to aggressive targets for emissions reduction and renewable energy, which has increased demand for voluntary RECs.
In addition, Asia Pacific is projected to grow rapidly in the global Renewable Energy Certificate (REC) market. Renewable energy certificates are easily traded non-tangible energy commodities in a nation. The rising demand for green or renewable power has further accelerated the market expansion in the region. The region is known for its numerous high-tech businesses, each of which has significant energy needs that encourage the growth of renewable energy sources.
Recent Development:
- February 2024: Statkraft and Air Liquide signed the Virtual Power Purchase Agreement. The deal calls for Air Liquide to buy RECs from recently constructed wind farms in Poland. It is anticipated that this agreement will result in an annual reduction of 38,000 tonnes of carbon dioxide (CO2) emissions from Air Liquide.
Renewable Energy Certificate (REC) Market Report Scope:
|
Report Attribute |
Specifications |
|
Market Size Value In 2024 |
USD 25.3 Bn |
|
Revenue Forecast In 2034 |
USD 69.1 Bn |
|
Growth Rate CAGR |
CAGR of 10.8% from 2025 to 2034 |
|
Quantitative Units |
Representation of revenue in US$ Million and CAGR from 2025 to 2034 |
|
Historic Year |
2021 to 2024 |
|
Forecast Year |
2025-2034 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Capacity, Energy Type, And End-Use |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
AFS, Climate Impact Partners, 3Degrees, Inc, Ecohz, REDEX, Shell Energy, ENGIE, Evolugen, EDF Trading Limited, GRID-INDIA, Enel Spa, Statkraft, Sterling Planet, South Pole, and STX Group. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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