Market Insights
“The renewable energy certificate (REC) market value was US$12.8 billion in 2024 and is likely to grow at a robust CAGR of 8.5% in the long run to reach US$24.0 billion in 2032.”
Market Dynamics
Introduction
In today’s sustainability-driven global economy, Renewable Energy Certificates (RECs) have emerged as a critical instrument for accelerating the transition toward clean energy. These market-based instruments certify that the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource, allowing both corporations and individuals to meet renewable energy goals or comply with regulatory mandates. As climate change pressures intensify and governments set ambitious renewable targets, the demand for RECs is witnessing significant growth across both compliance and voluntary markets.
The rise of corporate ESG commitments, international frameworks like the RE100 initiative, and innovations in energy trading platforms are driving dynamic changes in the REC market. Regulatory bodies such as the Environmental Protection Agency (EPA), the International REC Standard (I-REC), and national-level programs are playing a pivotal role in standardizing and promoting transparency within REC trading. This study offers a comprehensive analysis of the global REC market, highlighting emerging trends, key players, regulatory impacts, and strategic opportunities shaping the industry’s future.
Recent Market JVs and Acquisitions:
- In October 2023, Shell Energy invested in renewable certification platforms to support its global clean energy transition and expand its REC trading capabilities.
- In April 2023, Acciona Energy partnered with FlexiDAO to enhance the traceability of Renewable Energy Certificates using blockchain-based digital solutions.
- In January 2022, Brookfield Renewable acquired Urban Grid for $650 million to expand its renewable energy project pipeline and boost its REC generation capabilities in North America.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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End User-Type Analysis
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Industrial, Commercial, Residential, Utilities
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Utilities are anticipated to contribute the largest share of the Renewable Energy Certificate market.
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Type-Type Analysis
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Compliance REC, Voluntary REC
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Compliance RECs are expected to hold the largest share due to strong regulatory mandates.
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Technology-Type Analysis
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Solar Energy, Wind Energy, Hydropower Energy, Biomass Energy, Geothermal Energy, Other Energy.
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Wind energy is anticipated to dominate owing to its high renewable power output.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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North America is expected to maintain its reign over the forecast period.
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By End-User
“Utilities are expected to remain dominant, and the commercial industry will be the fastest-growing end-user in the market during the forecast period.”
Utilities will continue to dominate the REC market as they are primarily responsible for meeting statutory renewable purchase obligations (RPOs) and Renewable Energy Standards (RES). Their large-scale energy procurement and grid management roles make them consistent buyers of RECs in both compliance and voluntary markets. On the other hand, the commercial industry—including tech giants, data centers, and retail chains—is emerging as the fastest-growing segment, driven by corporate sustainability goals, ESG commitments, and participation in global initiatives like RE100. These businesses increasingly rely on RECs to offset their carbon footprints and meet green energy targets.
By Type
“Compliance RECs are expected to remain dominant, and voluntary RECs will be the fastest-growing type in the market during the forecast period.”
It is anticipated that compliance RECs will continue to dominate the market due to mandatory renewable energy targets set by governments and regulatory bodies globally. These certificates are essential for utilities and obligated entities to meet Renewable Portfolio Standards (RPS) and other clean energy mandates. Regulatory programs in the U.S., Europe, and parts of Asia have established structured compliance markets, creating a stable and recurring demand for RECs. Additionally, increasing fines for non-compliance and expanding coverage of renewable energy mandates across developing regions further fuel the demand for compliance RECs. The consistent policy push and growing enforcement of renewable targets make compliance RECs a core component of the global transition to clean energy.
By Technology
“Wind energy is expected to remain dominant, and solar energy will be the fastest-growing technology in the market during the forecast period.”
Wind energy is expected to continue leading the REC market due to its extensive global deployment and high capacity for renewable electricity generation. Countries like the U.S., Germany, and China have significantly invested in onshore and offshore wind infrastructure, contributing large volumes of RECs annually. Wind projects also tend to have longer lifespans and higher load factors, making them more reliable for REC generation. Meanwhile, solar energy is gaining traction rapidly due to declining installation costs, supportive incentives, and expanding rooftop and utility-scale solar adoption—especially in Asia-Pacific and North America—making it the fastest-growing REC-generating technology.
By Region
“North America is expected to remain dominant, and Asia-Pacific will be the fastest-growing region in the market during the forecast period.”
North America, especially the U.S., is anticipated to retain its dominant position in the REC market due to its mature and well-structured compliance systems, such as WREGIS and SREC programs. The strong participation from both compliance and voluntary industries, along with the presence of leading REC issuers and marketplaces, further supports regional dominance. However, Asia-Pacific is poised to be the fastest-growing region due to rapidly expanding renewable energy capacity, rising environmental awareness, and evolving regulatory frameworks in countries like India, China, and Australia. These nations are actively developing or refining REC mechanisms to meet ambitious clean energy targets.
Key Players
Here is the list of the Top Players
- 3Degrees Inc.,
- Acciona Energia, S.A.,
- ACT Commodities,
- Brookfield Renewable Partners L.P.,
- ENGIE,
- Enel Green Power S.p.A.,
- Iberdrola S.A.,
- NextEra Energy, Inc.,
- Orsted A/S,
- Schneider Electric SE
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global Renewable Energy Certificate Market is segmented into the following categories.
Renewable Energy Certificate Market, by End-User Type
- Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Commercial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Residential (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Utilities (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Renewable Energy Certificate Market, by Type
- Compliance REC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Voluntary REC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Renewable Energy Certificate Market, by Technology Type
- Solar Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Wind Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Hydropower Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Biomass Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Geothermal Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Other Energy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Renewable Energy Certificate Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s renewable energy certificate market realities and future market possibilities for the forecast period.
- The report segments and analyses the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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