March 26, 2024

TraceX's journey: Transforming renewable energy certificates (RECs) market and beyond

TraceX disrupts the over-the-counter renewable energy certificates (RECs) trading by offering a digital marketplace, catalysing the RECs market towards efficiency and transparency.

Renewable Energy Certificates (RECs) are crucial instruments for reducing emissions and increasing renewable energy procurement targets. While the US voluntary RECs market is set to cross the 1.8-billion mark by 2033, the current way of RECs trading, known as Over-the-Counter (OTC), still has several issues: it's opaque, expensive, and risky. Furthermore, RECs trading in the traditional markets is often a complicated process, which adds to the administrative burden.

These factors set the background for the birth of the idea of TraceX, a fully digital and automated marketplace for efficient and transparent RECs trading. It plays a crucial role in the evolving energy markets, where transparency is becoming ever more essential.

TraceX’s is aimed at simplifying RECs trading and setting a new standard with a focus on  transparency and improving overall market efficiency. 

REC procurement for a diverse customer base

 TraceX’s is well recognised in the renewable energy market for bringing efficiency to the REC procurement. This reflects well in the growth and diversity of our customer base which includes sustainability consultancies, environmental commodity brokerage firms, and renewable energy cooperatives. 

Enhanced user choice

Sustainability has become a dominant theme in the global energy market. With a growing number of companies using RECs as tools to meet their sustainability targets, enhancing user choice is imperative. 

TraceX enhances user choice by offering users the ability to tailor their REC selections according to detailed attributes such as vintage, certification schemes, and specific project names. This approach enables users to align their purchases with sustainability objectives and preferences, ensuring support for top-tier renewable energy initiatives. 

Selecting RECs based on these precise attributes ensures transparency and traceability. This allows users to invest in projects that uphold rigorous standards of environmental integrity and ethical practices. This focused selection process enables users to make informed decisions and enhance the efficacy of their renewable energy investments.

Supporting new renewable projects

TraceX encourages the growth of renewable energy sources through additionality, allowing users to support newer projects by buying RECs based on the commenced operation date of the facility.

Additionality is a concept where investments or purchases actively contribute to the establishment or expansion of renewable energy ventures that would not have materialised without that particular support.

By empowering users to purchase RECs based on the initiation date of a facility's operation, TraceX actively champions this principle. It enables users to prioritise and invest in newer renewable projects, ensuring that their investment directly catalyses the growth of additional renewable energy capacity, rather than merely reallocating funds among existing initiatives.

Future roadmap

TraceX brings transparency, efficiency, and accessibility to the RECs market. By providing real-time price discovery, streamlining transactions, and lowering entry barriers, it empowers businesses of all sizes to contribute to sustainability. 

Being committed to continuous innovation for simplifying RECs procurement for all, TraceX will soon announce new developments that will close the gap between wholesale and retail markets. The new developments will be aimed at providing market access to participants who previously could only access RECs through intermediaries. 

Overall, TraceX's impact extends far beyond its platform, shaping a future where renewable energy is more accessible, transparent, and sustainable for all. 

Experience transparent, efficient, and accessible RECs trading, learn how TraceX can revolutionise your RECs procurement. Book your TraceX demo today!

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