India Renewable Energy Certificates Industry Size, Share, Growth Analysis & Market Report 2025-2033
According to the latest report by IMARC Group, titled "India Renewable Energy Certificates Market Report by Energy Type (Solar Energy, Wind Power, Hydroelectric Power, Gas Power), Capacity (0-1,000KWh, 1,100-5,000KWh, More than 5,000KWh), End Use (Voluntary, Compliance), and Region 2025-2033," the report presents a thorough review featuring the India Renewable Energy Certificates Market growth, share, trends, and research of the industry.
Market Size & Future Growth Potential:
The India Renewable Energy Certificates industry size reached USD 572.01 Million in 2024 and expects the market to reach USD 4,711.11 Million by 2033, exhibiting a growth rate (CAGR) of 26.40% during 2025-2033.
Latest Market Trends:
The renewable energy certificates market in India is experiencing transformative growth driven by several interconnected factors. The market is primarily propelled by strengthening government policy frameworks, with India's renewable energy capacity crossing the landmark 200 GW threshold in October 2024, reaching 201.45 GW. This achievement underscores the nation's accelerating commitment to clean energy infrastructure and creates substantial demand for RECs as compliance instruments.
Corporate sustainability initiatives are reshaping market dynamics as businesses across manufacturing, IT, and retail sectors increasingly purchase RECs to demonstrate environmental responsibility. Companies are aligning with global standards such as RE100 and Science-Based Targets, viewing RECs as cost-effective tools to offset carbon footprints without directly investing in generation facilities. The Indian Energy Exchange reported a notable 26.4% year-on-year increase in REC trading volumes during fiscal year 2024, with January 2024 witnessing record-breaking transactions of 1.52 million RECs.
Trading reforms introduced by the Central Electricity Regulatory Commission in 2022 have enhanced market liquidity and transparency, making the REC mechanism more efficient. These reforms broadened eligibility criteria and streamlined trading processes, attracting both domestic and international investors to the market. The multimodal nature of renewable energy development—spanning solar, wind, and hydroelectric sources—is creating diverse REC categories that cater to different compliance requirements and buyer preferences.
Technological advancements in renewable energy generation are improving efficiency and reducing costs, making clean energy more accessible. This cost-competitiveness, combined with financial incentives, feed-in tariffs, and tax benefits offered by the government, is stimulating renewable energy generation and, consequently, REC supply. The market is also benefiting from the Make in India initiative, which promotes localized manufacturing of renewable energy equipment, reducing dependency on imports and strengthening the domestic supply chain.
Furthermore, the growing awareness among consumers about corporate environmental responsibility is pushing businesses to seek green credentials actively. Distribution companies (DISCOMs) and open-access consumers face stringent Renewable Purchase Obligations (RPOs), with revised targets reaching 43.33% by fiscal year 2029-30, creating consistent baseline demand for RECs. This regulatory pressure, combined with voluntary corporate commitments, ensures sustained market expansion across India's diverse geographical regions.
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Market Scope and Growth Factors:
The scope of the India REC market is broadening substantially as the country transitions toward a low-carbon economy. The market encompasses diverse stakeholders including renewable energy generators, DISCOMs, corporate buyers, trading platforms, and regulatory bodies, all working within an evolving framework designed to accelerate clean energy adoption.
Government policy support remains the cornerstone of market expansion. The National Action Plan on Climate Change and Renewable Energy Development Policy have established clear pathways for renewable energy integration. In December 2024, ONGC announced plans to auction 1.2 GW of greenfield renewable energy projects through two 600 MW bidding rounds, demonstrating public sector commitment to capacity expansion. Additionally, large-scale private investments are flowing into the sector, exemplified by Adani Group's announcement of an $88 billion investment in Rajasthan for a 100 GW green energy ecosystem.
Strategic acquisitions are reshaping the competitive landscape. In February 2025, ONGC-NTPC Green Energy acquired Ayana Renewable Power for $2.3 billion, adding approximately 4.1 GW of operational and under-construction assets to their portfolio. This transaction represents one of the largest consolidations in India's renewable sector and signals growing confidence in the market's long-term prospects. Similarly, ONGC Green's acquisition of PTC Energy for $106 million in March 2025 added 288 MW of operational wind capacity, enhancing REC supply potential.
The market scope is experiencing significant growth driven by mandatory compliance mechanisms. Revised Renewable Consumption Obligation (RCO) guidelines introduced in September 2025 mandate progressive increases in renewable energy consumption, from 29.91% in fiscal year 2024-25 to 43.33% by fiscal year 2029-30. These binding targets apply to distribution licensees, open-access consumers, and captive users, ensuring sustained demand for RECs as a compliance tool. The framework includes technology-specific obligations for wind, hydro, and distributed renewable energy, creating specialized REC categories.
Digitalization and technological integration are transforming market operations. The Bureau of Energy Efficiency is developing web-based monitoring tools for RCO compliance, improving transparency and reducing administrative friction. Trading platforms like the Indian Energy Exchange and Power Exchange India Limited have implemented advanced systems enabling efficient price discovery and settlement. The introduction of standardized certification systems aligned with international frameworks like I-REC ensures global recognition of Indian RECs.
Infrastructure development is critical to supporting market growth. The government has outlined a $500 billion grid-upgrade roadmap extending to fiscal year 2050, addressing transmission constraints that currently limit renewable energy integration. Interstate transmission charge waivers for projects commissioned before June 2025 provide additional incentives for capacity addition. These infrastructure investments will enable smoother REC trading by ensuring reliable electricity transmission from resource-rich states to demand centers.
The voluntary market segment is gaining momentum alongside compliance-driven demand. Multinational corporations operating in India are purchasing RECs to align with global sustainability commitments and enhance their environmental credentials. This dual demand structure—combining mandatory RPO compliance and voluntary corporate purchases—provides market stability and resilience. Foreign direct investment continues flowing into renewable projects, with green open-access regulations facilitating corporate procurement of clean energy.
Sector-specific adoption patterns reveal broad-based growth. Manufacturing units, data centers, IT parks, and industrial facilities are leading voluntary REC purchases. The healthcare, chemicals, construction, automotive, and telecom sectors are increasingly participating in the market as sustainability becomes integral to business strategy. This cross-sectoral engagement diversifies the buyer base and reduces concentration risk.
The market is also witnessing the emergence of hybrid renewable-plus-storage projects, with Reliance securing India's largest 930 MW solar plus 1,860 MWh battery storage contract in December 2024. Such developments enhance the reliability of renewable generation and support higher REC values. Green hydrogen initiatives and offshore wind developments represent future growth frontiers that will expand the REC market's scope further.
As industries continue evolving and environmental regulations tighten, the India REC market is positioned for sustained expansion and innovation. The convergence of policy support, corporate sustainability commitments, infrastructure development, and technological advancement creates a favorable ecosystem for long-term growth, making RECs an indispensable instrument in India's energy transition journey.
Recent News and Developments:
October 2024: India's renewable energy installed capacity surpassed the significant milestone of 200 GW, reaching 201.45 GW, reinforcing the country's position as a global leader in clean energy deployment and creating robust demand for renewable energy certificates.
December 2024: ONGC announced plans to auction 1.2 GW of greenfield renewable energy projects through two separate 600 MW rounds, with the first round focusing on complete project development and the second addressing land acquisition, grid connectivity, and engineering, procurement, and construction separately.
December 2024: Adani Group revealed a massive $88 billion investment commitment in Rajasthan aimed at developing a 100 GW green energy ecosystem, marking one of the largest renewable energy investments in India and significantly expanding the potential supply of RECs.
December 2024: Reliance NU Suntech secured a landmark tender for 930 MW solar capacity paired with 1,860 MWh battery energy storage, representing Asia's largest single-site battery storage system outside China and demonstrating the integration of storage solutions with renewable generation.
January 2024: Indian Energy Exchange recorded record-breaking transactions with 1.52 million RECs traded in a single month, highlighting the growing liquidity and acceptance of the REC mechanism as a compliance and sustainability tool.
February 2025: ONGC-NTPC Green Private Limited signed a share purchase agreement to acquire 100% equity stake in Ayana Renewable Power at an enterprise value of $2.3 billion, adding approximately 4.1 GW of operational and under-construction solar, wind, and round-the-clock projects to their portfolio.
March 2025: ONGC Green Energy completed the acquisition of PTC Energy for $106 million, adding 288 MW of operational wind energy capacity and strengthening the state-owned entity's position in the renewable energy sector.
May 2024: Indian Energy Exchange reported a 26.4% year-on-year growth in REC trading volumes for fiscal year 2024, reflecting increased market participation and growing awareness about renewable energy compliance obligations.
September 2025: The Ministry of Power issued revised Renewable Consumption Obligation (RCO) guidelines, superseding earlier Renewable Purchase Obligation frameworks and establishing a progressive trajectory from 29.91% in FY 2024-25 to 43.33% by FY 2029-30, ensuring sustained demand for RECs.
February 2024: The Indian Wind Power Association Northern Region Council challenged the Central Electricity Regulatory Commission's 2022 regulations on renewable energy certificates, with the outcome expected to influence REC market dynamics and trading mechanisms significantly.
Comprehensive Market Report Highlights & Segmentation Analysis:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest India Renewable Energy Certificates Market Share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.
Segmentation by Energy Type:
Solar Energy
Wind Power
Hydroelectric Power
Gas Power
Segmentation by Capacity:
0-1,000KWh
1,100-5,000KWh
More than 5,000KWh
Segmentation by End Use:
Voluntary
Compliance
Segmentation by Region:
North India
South India
East India
West India
Competitor Landscape:
The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.
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Key highlights of the Report:
Historical Market Performance
Future Market Projections
Impact of COVID-19 on Market Dynamics
Industry Competitive Analysis (Porter's Five Forces)
Market Dynamics and Growth Drivers
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Market Ecosystem and Value Creation Framework
Competitive Positioning and Benchmarking Strategies
Major Advantages of the Report:
This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.
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