The global renewable energy certificate market size was valued at $9.3 billion in 2020, and is projected to reach $103.2 billion by 2030, with global renewable energy certificate market forecast expected at a CAGR of 27.2% from 2021 to 2030. Renewable energy certificate also known as green tags, renewable Energy Credits, or Tradable renewable Certificates which are tradable, non-tangable energy commodities in the United States that represent proof that 1MWh of electricity was generated from an eligible renewable energy source. Solar renewable energy certificates are RECs that are specifically generated by solar energy. The increase in demand for power across the globe and the state policies towards the companies to fulfil the targets needed to use renewable energy. The increase in the renewable energy market share from the roof top solar panels, micro wind turbines, and micro hydro power plants are driving the growth of the market. The government policies towards the development of these cost effective and sustainable resources are driving the growth of the market. The presence of water stream, canals and other flowing water resource places are driving the demand for mini hydro power plant. These factors majorly drive the growth of the renewable energy certificate market.
The incompleteness of the regulations and not completely formed organization on the basis of this market is also one of the reasons restraining the growth of the market. The favorable policies for local resources over imports to encourage local renewable energy development and to protect local or regional resources from competition from cheaper RECs from outside the region have put an unconstitutional restrain of interstate trade under the U.S. Commerce Clause. The un-awareness among the developing countries regarding the renewable energy certificates especially in India for individual people as most of the RECs produced in India are bought by the compliance market which accounts for nearly 99% hampering the growth of renewable energy certificate market.
The rapid innovation, development of communication technology and demand for power generated from renewable energy to offset the GHG emission will increase the demand for renewable energy certificate materials. The development of micro hydro power plant a type of hydro-electric power scheme that produces up to 100 KW of electricity using flowing steam or a water flow. The electricity from such systems is used to power isolated homes or communities and is sometimes connected to the public grids. In addition to this the development of micro wind turbines all over the world and their cost effectiveness and suitability to provide energy for the homes and the excess is sold to the public grids. The above-mentioned applications will provide ample opportunities for the growth of renewable energy certificate market.
Via: alliedmarketresearch