Oriflame, an international social selling wellbeing and beauty company, recently procured Peace Renewable Energy Credits (P-RECs) from Prado Power in Nigeria. This transaction is exciting because it represents five “firsts” for emerging P-REC markets:
1. The first consumer brand P-REC purchase by Oriflame
With its P-REC purchase, Oriflame has become the first consumer products brand to purchase P-RECs. Prior P-REC purchases involved three tech and fintech companies: Microsoft, Google, and Block.
The P-RECs purchased by Oriflame have been issued from new distributed solar mini-grids constructed by Prado Power. Revenue from the sale of P-RECs will be used by Prado to fund the construction of a new productive use agricultural hub in Maijaki, Nigeria. Oriflame has committed to provide support for a five year period.
This purchase helped Oriflame achieve its 100% renewable electricity commitment for all own sites the company operates while “creating a much wider positive social impact.” More widely, Oriflame has set and made
2. The first use of P-REC funds to support community agriculture
The Oriflame transaction represents the first time that revenue from P-RECs has been used to fund a productive use hub for community agriculture. This productive use hub, which is powered by the same solar mini-grids from which the P-RECs were issued, will benefit local women with new employment and economic opportunities in this rural community.
3. The first P-REC transaction in Nigeria
The Oriflame-Prado deal is the first completed P-REC transaction in Nigeria. The advisory firm Becour organized the transaction. Given the number of corporate buyers with operations in Nigeria and increasing prioritization of Nigeria in international climate and clean energy initiatives, EPP expects that demand for Nigerian P-RECs will help fuel wider growth in P-REC markets, given how it is a fast-growing economy where many corporate buyers have operations. Case in point: the second-ever Nigerian P-REC deal soon followed the Oriflame transaction, where Block procured P-RECs through the advisory firm 3Degrees. More P-REC projects in Nigeria are also currently under review in the available P-REC pipeline.
4. The first P-REC transaction by renewable energy developer Prado Power
The Oriflame deal serves as the first completed P-REC transaction by Prado Power. The resulting P-REC revenues will not only move the productive use agricultural hub forward, but advances the mission of Prado Power’s CEO, Washima Mede, to address power supply challenges in Nigeria, primarily for those who engage in agriculture for sustenance.
5. The first P-REC transaction for advisory firm Becour
This P-REC transaction represents the first completed transaction by the clean energy advisory firm Becour, also called the ”tinder for renewable energy”. Becour has incorporated P-RECs into its renewable energy offerings for corporate buyers. As a result of this transaction, Becour joined a group of three advisory firms with the “Experienced P-REC Seller” distinction that EPP introduced earlier this year.
These five “firsts” demonstrate the growing visibility, appeal, and traction for P-RECs. EPP is thrilled by this progress and will continue to report on new P-REC market developments and growth.