Renewable energy certificates (RECs) are an energy procurement option that certify the bearer owns one megawatt-hour (MWh) of zero-carbon electricity that has been generated by renewable energy sources and delivered to the power grid. RECs are tradable instruments that represent the property rights to the environmental, social and other non-power attributes of renewable electricity generation.
The renewable energy certificates market consists of sales, by entities (organizations, sole traders and partnerships) of renewable energy certificates that provide a mechanism for tracking and trading of the environmental benefits of renewable electricity.
The global renewable energy certificates market was valued at $6,065.82 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 17.0%.
Declining Renewable Energy Costs
During the historic period, the declining renewable energy costs contributed to the growth of the renewable energy certificates market. As the costs of renewable energy technologies, including solar and wind, declined, more energy producers and consumers were encouraged to adopt these technologies. This surge in renewable energy generation led to a higher issuance of renewable energy certificates (RECs), as these certificates are directly tied to the amount of renewable energy produced. For instance, according to the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental organization, the costs of generating electricity from renewable sources exhibited varied trends in 2022. The global average cost for newly commissioned utility-scale solar photovoltaics (PV) decreased by 3%, bringing it to $0.049 per kilowatt-hour (kWh). Onshore wind costs also declined by 5%, reaching $0.033 per kilowatt-hour (kWh). Conversely, offshore wind costs increased by 2%, rising to $0.081 per kilowatt-hour (kWh). The declining renewable energy costs supported the growth of the renewable energy certificates market.
New Wind Energy Certificates Enhance Sustainability In Abu Dhabi
Major companies operating in the renewable energy certificates market are launching new wind energy certificates to enhance sustainability which seeks to substantially lower carbon emissions and boost the proportion of renewable energy within the national energy mix. For example, in September 2024, Emirates Water and Electricity Company (EWEC) a UAE-based company that provides renewable energy certificates, launched Clean Energy Certificates (CECs) specifically for wind energy, allowing organizations in Abu Dhabi to purchase certificates that confirm their consumption of electricity generated from the UAE's first utility-scale wind program. This initiative enables entities to track their use of renewable energy, reduce carbon emissions and advance their sustainability objectives, aligning with the UAE's Net Zero by 2050 Strategic Initiative. The wind CECs are available for acquisition through EWEC's quarterly auctions, in addition to existing solar and nuclear CECs, offering a diverse selection of clean energy options for Abu Dhabi-based organizations.
The global renewable energy certificates market is fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 6.43% of the total market in 2023.
Renewable Energy Certificates Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global renewable energy certificates market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for renewable energy certificates? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The renewable energy certificates market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider renewable energy certificates market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by energy type, by capacity and by end use.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the renewable energy certificates market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by energy type, by capacity and by end use in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for renewable energy certificates providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Energy Type: Wind Power; Solar Energy; Gas Power; Hydro-Electric Power
- 2) By Capacity: 0-1000 KWh; 1000-5000 KWh; Greater Than 5000 KWh
- 3) By End Use: Compliance; Voluntary
- Companies Mentioned: Statkraft AS; Constellation Energy Corporation; NextEra Energy Inc.; Brookfield Renewable Partners L.P.; ENGIE SA
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; renewable energy certificates indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.