Renewable Energy Certificate Market Report 2023: Industry Overview, Size, Share, Trends & Forecast till 2032
The Global Renewable Energy Certificate Market was valued at USD 13.62 Billion in 2021 and is expected to reach USD 110.94 Billion during the forecast period from 2022-2030, expected to grow at a CAGR of 27.2% during the forecast period.
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Renewable energy certificates, also known as renewable energy credits or green tags, are non-tangible and tradable energy commodities used as proof to determine that 1MW per hour of electricity was generated from a renewable energy source. For example, solar renewable energy certificates are obtained from solar energy power. The US represents the U.S. the ultimate proof of the renewable energy certificate. There are two types of markets in the US for implementation. The policy created the compliance market and currently exists in 29 US states. U.S. other is voluntary markets used by most households and the corporate sector. The customers choose to purchase renewable power based on their preferences.
Market Dynamics
Drivers
The increase in environmental awareness and the demand for renewable energy sources drive the global renewable energy certificate market across different regions. The accelerated development of green data centers and the regulated use of non-renewable sources are the reasons behind the growth of the energy certificate market. In addition, the policies created by the government that support cost-effective and sustainable resources drive market growth. For instance, the ubiquity of water streams, canals, and other water-based resources are used to develop multiple mini hydro power plants, which ultimately enhanced the energy certificate market.
Restraints
Despite this awareness, there still needs to be proper understanding in underdeveloped regions. The need for more regulations and incomplete organizations across such areas can hamper the growth expected in the forecast period. Many underdeveloped and developing countries must be aware of the renewable energy certificate market.
Opportunities
The rising investments and initiatives of the government and the private sector is expected to support market growth in the foreseeable future. The innovation of the micro hydro power plant, which can produce up to 100KW of electricity using the water stream, provides ample opportunities for renewable energy certificate market growth. The power can be used in isolated homes and communities, sometimes connected to the public grid. Likewise, the sustainable and cost-effective micro wind turbine installation provides enough power to homes and public grids.
Report Highlights
Based on an energy type, solar renewable energy has dominated the REC market in 2021 and is expected to expand further during the forecast period. This can be attributed to the rapid increase in solar power generation due to increased concern for the usage of renewable sources of energy. However, the gas power segment is also expected to witness significant growth during the forecast period due to a rise in the production of biofuels from plants and increased municipal waste management and recycling.
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Based on an end-user analysis, the voluntary segment has dominated the global REC market in 2021 and is projected to maintain its position during the forecast period. This can be attributed to the increased awareness of GHG emissions using non-renewable sources.
Based on Capacity, the 5000+ KWH segment dominated the global market in 2021 due to the rapid increase in renewable sources for electricity generation and the investments provided by governments and the private sector to build wind and solar farms across the globe.
Key Players
Segments covered in the report
By Energy Type
By Capacity
By End-Use