Clean energy sources accounted for 40.9% of global energy production in 2024. For the very first time since the 1940’s, low carbon sources generated more than 40% of the global industry. Beneath achieving this milestone is a more complex narrative: one that feeds into the surging demand of energy and the climate driven volatility. In this context, market mechanisms like renewable energy certificates (RECs) and carbon offsets allow for accountability and scalability within the rapidly evolving energy landscape.

The numbers that Ember, a UK based climate and energy think tank, shared in their report from 2024 paint a compelling picture. Renewable power sources added a record 858 terawatt-hours (TWh) of electricity, 49% more than the previous high set in 2022.

A lot of factors have contributed to this exponential rise in clean supply, however, a notable front runner in this transition was solar energy. It not only achieved its highest ever annual growth, it reinforced its role as the cornerstone of the shift to cleaner energy. Solar alone contributed 474 TWh to this increase, maintaining a 29% growth rate and solidifying its position as the fastest-growing electricity source globally for the 20th year in a row. It was also the largest contributor to the new generation for the third consecutive year.

Hydropower rebounded from previous years of drought, contributing an additional 182 TWh and reaching a new all-time high, while wind generation rose by a similar margin (+182 TWh). Nuclear output also increased modestly by 69 TWh, driven largely by higher utilization rates in France. Together, low-carbon sources like renewables and solar delivered 40.9% of the world’s electricity in 2024, which is an increase from the year before. 

It is important to note that the clean electricity growth didn’t take place within a vacuum. Global electricity demand rose by 4.0% in 2024, significantly higher than the ten-year average of 2.5%. This growth resulted from expanding electrification across sectors like transport, heating, and digital infrastructure, which all increased the baseline energy needs. However, the majority of the 2024 demand growth stemmed from climate variability. Heatwaves in population-dense areas led to a surge in cooling demand, particularly in China, the U.S., and India, aided to this electricity demand growth. 

Ember estimates that hotter temperatures and heatwaves added 208 TWh of additional electricity demand. This led to overall demand increasing by +4%, up from the 2.6% increment in 2023. Clean energy sources met 96% of the growth in demand not caused by heatwaves. The additional burden fell to fossil fuels, which saw a 1.4% increase in generation. This drove global power sector emissions to a record high of 14.6 billion tonnes of CO₂.

It’s imperative to note that despite increases in the use of clean energy, weather extremes can temporarily stall decarbonization progress. In this context, flexible technologies, like battery storage, demand response, and grid interconnection, will be crucial for buffering short-term variability. As will transparent, market-based tracking systems that connect clean generation with consumption.

The Role of RECs in the Renewable Energy Ecosystem

This is where renewable energy certificates (RECs) come in. As the share of clean electricity grows, so does the need for robust mechanisms to track, verify, and allocate it. A REC is a market-based instrument that certifies the generation of one megawatt-hour of renewable electricity. By decoupling the renewable attribute from the physical electricity, RECs allow energy users like corporations, governments, and individuals to credibly claim their use of clean power, regardless of location or time of consumption.

In 2024’s high-growth environment, RECs play several key roles:

• Accountability: As electricity systems grow more complex and decentralized with rooftop solar, distributed wind, and microgrids, RECs ensure every clean MWh is counted and assigned to a user.
  
  
• Scalability: By creating a liquid and standardized market, RECs enable voluntary demand to scale beyond physical power purchase agreements (PPAs).
  
  
• Decarbonization Strategy: For companies pursuing net-zero targets or Science-Based Targets, RECs offer a verified path to renewable procurement when direct sourcing isn't feasible.
  
  
• Policy Support: RECs are used to track compliance with national or sub-national climate goals.
  
  

RECs are not without challenges and questions about additionality, regionality, and transparency persist. However, in a world where clean electricity is growing faster than ever, they remain a cornerstone of market confidence and climate credibility. 

The RECs market, far from being a side mechanism, is emerging as a critical infrastructure layer in the energy transition.

At Innovo, we believe that credibility and transparency are essential for scaling clean energy. As solar, wind, and other renewables reshape the electricity landscape, RECs will remain vital to tracking progress, incentivizing investment, and ensuring that markets function with integrity.

The transition is well underway and to navigate it, we’ll need not only more clean power, but better tools to prove it. Read more from Ember's report here.