According to S&P Global’s projection, US voluntary renewable energy certificates are expected to grow steadily at a 15.9% annual rate from 2024 to 2033.
Behind this projected surge lies a dual force: the growing demand for renewable energy to meet sustainability targets and the steadfast commitment of governments worldwide to enact policies mandating renewable energy utilisation. Despite the massive projected growth in market size, a pressing question looms: Is our current level of innovation sufficient to tackle the existing challenges in the RECs market?
Let’s explore the challenges of the existing REC market and how innovations like TraceX can change the way we trade RECs.
The need for innovation in the RECs market
The challenges in current systems often spark new innovations, leading to the emergence of new agile markets. This pattern has been seen throughout the history of innovation. Much like the innovation of the printing press in the mid-15th century, which not only simplified the laborious task of copying documents by hand but also laid the cornerstone for the media and publishing industry.
Renewable Energy Certificates (RECs) play a crucial role in incentivising renewable energy generation and achieving sustainability goals. However, traditional REC markets face several challenges that hinder their effectiveness:
TraceX: Technological breakthroughs for market needs
TraceX is a digital marketplace that uses blockchain technology to efficiently handle the trading of Energy Attribute Certificates (EACs), such as Renewable Energy Certificates (RECs), Guarantees of Origin (GOs), carbon credits and other environmental instruments.
Seamless integration with M-RETS: TraceX is fully integrated with the largest voluntary REC registry in North America, the Midwest Renewable Energy Tracking System (M-RETS). With this, customers can link their M-RETS account, and once the link is established, import EACs to the marketplace to list for sale. Successful purchases in the marketplace are updated directly through buyers' and sellers' M-RETS accounts. This integration streamlines the import and purchase process of RECs through existing registry accounts.
Faster settlement: Unlike the prolonged settlement timelines typical of Over-the-Counter (OTC) trades, TraceX’s on-platform payments ensure much faster settlement times.
Enhanced accuracy: TraceX prioritises REC exclusivity and integrity by implementing a robust system that encumbers RECs in the registry account before transferring them to TraceX. This preventive measure effectively eliminates the risk of double use, safeguarding the authenticity and value of each REC.
Simplified REC procurement: TraceX's new filtering system offers a holistic view of real-time market prices. It displays both bids and asks cohesively. This transparency allows users to make well-informed decisions, offering efficient price discovery from both buying and selling perspectives.
CRS integration for REC legitimacy: TraceX’s CRS integration guarantees that RECs are not only legitimate but also align seamlessly with facility expiration dates, assuring companies that their transactions are timely and accurate.
The power of blockchain for audibility:
In a nutshell
By fostering enhanced market efficiency and transparency, TraceX not only facilitates the seamless trading of RECs but also drives broader adoption of clean energy solutions. Moreover, TraceX's impact extends beyond transactional efficiency to inspire innovation and accelerate progress towards sustainability goals.
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