In late February, EPP traveled to Nairobi, Kenya and Goma, DRC to meet with partners and verify EPP’s first P-REC project. Below are a few highlights and reflections from the trip:
First P-REC project from the Democratic Republic of Congo (DRC) - EPP visited Nuru Congo’s 1.3MW solar mini-grid in Goma, from which we will issue the first-ever Peace Renewable Energy Credits (P-RECs). Notably, these will also be the first I-RECs to be issued from the DRC (please see our earlier post on the significance of this development), as P-RECs are traditional I-RECs with an additional label from EPP certifying the peacebuilding co-benefits. The off-grid plant started providing 24-hour power to parts of Goma on February 4, 2020, and the revenue from the sale of the first 1,000 P-RECs, which have been pre-sold, is funding public streetlighting in the Ndosho neighborhood.
Photo credit: Zion Photographie. EPP and Nuru teams during project verification
Photo credit: Nuru
The EPP team discussed the impact of new electricity access and streetlights with Nuru and community members, who emphasized the insecurity that nighttime brings to Ndosho, and the importance of community lighting to improve safety and allow businesses to stay open later. The site visit also allowed EPP to set in motion the process for P-REC verification, which facilitates the extension of global I-REC markets to the first of EPP’s target countries, namely those most threatened by climate change, conflict, and energy poverty.
Mini-grids in Africa- The off-grid mini-grid sector in Africa is young and dynamic, with new companies emerging, and existing companies testing new business models. For example, some companies originally focused on electricity generation are expanding into the distribution business in an attempt to ensure financial viability, and vice-versa; others are focusing on engineering, procurement and construction (EPC) for primarily donor-funded projects; and a solar home system company is exploring the mini-grid space. Meanwhile, investors and financing firms are working to build out the evidence that mini-grids are a sustainable asset class. Investment remains limited for this sector, and is characterized by modest financial flows to relatively small projects. Further, while most projects are clustered in relatively stable countries, we were encouraged to learn of a growing number of projects under way in fragile settings, including in Mali, Somalia, South Sudan, Chad, Central African Republic, and DRC.
An evolving electricity sector in DRC - The electricity sector in Goma is evolving quite rapidly. New companies are entering the market, while existing companies are expanding their roles and offerings. This has created regulatory challenges for the sector, but it is also a sign of a growing dynamism and competition.
Photo credit: Nuru
Opportunities for expanding the P-REC pipeline - EPP learned about and met with a number of new companies working on renewable energy projects in EPP target countries, including in Mali, DRC, Chad, and Somalia. We hope this represents a positive trend in the renewable energy space in countries that have long been deemed too risky for investment and bodes well for expanding the pipeline of P-REC projects beyond our initial pilot projects in DRC and South Sudan.
Potential for transitioning UN field missions to renewables – EPP met with MONUSCO, the UN peacekeeping mission in the DRC, and shared the findings of our recent Powering Peace report: Renewable Energy and UN Peacekeeping: Untapped Potential in the DRC. The mission was particularly interested in the cost-benefit analysis of diesel-to-hydroelectric transitions included in the report, and solicited EPP’s feedback on options for transitioning additional UN sites from diesel to hydropower.
Dave and Sherwin with Gabriele Borla, Kevin Nyapom and Hector Cid of MONUSCO’s Engineering Section
The meeting provided valuable insights into UN peacekeeping electricity procurement, presented opportunities for prioritizing renewable energy in a manner that could be scaled across UN field missions, and highlighted the importance of engaging and presenting research findings to mission staff in the field.
Expanding peacebuilding potential and measuring impact - Measuring the potential peacebuilding impacts of renewable energy projects was a recurring theme across our trip. Our meetings with renewable energy companies highlighted dramatically different local contexts and conflict dynamics in eastern DRC, Somalia, and South Sudan. Yet some similarities and shared opportunities also exist, and we were struck by the need and opportunity for a more structured and systemic engagement between the renewable energy and peacebuilding communities. More immediately, the P-REC projects present an opportunity to measure the diverse impacts of new renewable energy access on local communities.
Building an EPP field presence –The meetings in both Nairobi and Goma reinforced to the EPP team the necessity of having a team member based in East Africa to support operational and programmatic activities through regular liaison with partners and funders. Our hope is to establish a field presence in the coming year that would support expansion of the P-REC and Powering Peace programs.