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According to the latest report, 249 GWs of hydropower and non-hydro power renewables may go online by 2030 across Asia. China will contribute 31% to this while India will contribute 68%.
“We expect Asia to be a strong performer in hydropower and non-hydro power renewables, with robust capacity growth in the coming decade, increasing the supply of Renewable Energy Certificates (RECs) in the region,” the report said.
RECs acts as an instrument to prove the decarbonization of companies for their support capacity and electricity sources. This allows the market to gain investors who are interested in renewable energy projects.
RECs are anticipated to grow because of the commitment of Asian countries to achieve net-zero emissions by 2060 and 2070. Malaysia and India have included RECs in the renewable push.
“We believe the increase of RECs will be met with much interest as companies look to reduce their carbon footprint towards net-zero emission goals,” the report added.
As per the report, 1 REC is equal to 1 MWh emission-free electricity. RECs are a way to curtail carbon emissions from electricity usage for government agencies and companies which do not produce powers.
“We believe that these functions of RECs for both power producers and consumers will be increasingly utilized in the coming years, showing markets’ support for renewables and presenting upside risks to our hydropower and non-hydro power projects,” the report concluded.