Renewable Energy Certificate (REC) market is poised for continuedgrowth in the coming years. REC sales in the compliance market alonewill increase more than 50 percent by 2015, reaching 179 millionmegawatt hour (MWh), according to a new report from Pike Research. In a forecast scenario thatincludes passage of a federal Renewable Portfolio Standard (RPS), thereport predicts that the REC market could nearly triple in size to 329million MWh by 2015.
The study, called “Renewable Energy Certificates,” assesses supplyand demand dynamics for the REC market, regulatory and policy factors,key industry issues and challenges, and the key players who are shapingthis fast-growing category. Based on extensive primary research andin-depth examination of market trends, the report includes comprehensive market data and forecasts for the growth of RECs as renewable energy is adopted on a larger scale inthe coming years.
RECs have become a significant financial and regulatory instrument to support the growth of renewable energy in the United States. The REC is the environmental attribute associated with the generation of 1 MWhof clean energy. Two distinct markets exist for RECs: the compliancemarket, mandated by state-level RPS and the voluntary market, whichincludes companies and institutions who purchase certificates todemonstrate environmental commitment.
“The REC market has continued to show strong growth even in the midst of a recession,” says managing director Clint Wheelock. “Our analysisindicates that both the compliance and voluntary REC markets willcontinue healthy growth rates no matter what happens, but the realgame-changer would be federally-mandated targets for power generationfrom renewable energy sources.”