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Two distinct markets exist for RECs: the compliance market, mandated by state-level Renewable Portfolio Standards (RPS), and the voluntary market, which includes companies and institutions who purchase certificates to demonstrate environmental commitment.

“Our analysis indicates that both the compliance and voluntary REC markets will continue healthy growth rates no matter what happens, but the real game-changer would be federally-mandated targets for power generation from renewable energy sources.”

According to a new report from Pike Research, the REC market is poised for continued growth in the coming years, and the cleantech market intelligence firm forecasts in a base-case scenario that REC sales in the compliance market alone will increase more than 50% by 2015, reaching 179 million MWh. In a forecast scenario that includes passage of a Renewable Portfolio Standard at the U.S. federal level, Pike Research anticipates that the REC market could nearly triple in size to 329 million MWh by 2015.

“The REC market has continued to show strong growth even in the midst of a recession,” says managing director Clint Wheelock. “Our analysis indicates that both the compliance and voluntary REC markets will continue healthy growth rates no matter what happens, but the real game-changer would be federally-mandated targets for power generation from renewable energy sources.”

Pike Research‘s study, "Renewable Energy Certificates", analyzes supply and demand dynamics for the REC market, regulatory and policy factors, key industry issues and challenges, and the key players who are shaping this fast-growing category. Based on extensive primary research and in-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 in the coming years.