The responses below provide answers to common questions that buyers ask about Peace RECs:
What is a Peace REC?
The Peace Renewable Energy Credit (Peace REC) is a quality label affixed to International Renewable Energy Certificates (I-RECs) from qualifying high-impact projects in fragile, energy poor countries, primarily in sub-Saharan Africa. Peace RECs convey all of the standard clean energy and Scope 2 emission reduction claim-related benefits of I-RECs, where 1 P-REC equals 1 megawatt-hour (MWh) of verified renewable energy generation from qualifying projects, plus convey verified social impact.
What does the Peace REC qualification process entail?
Energy Peace Partners (EPP) is a U.S. nonprofit organization that serves as the global Peace REC issuer. EPP certifies all Peace REC projects to ensure they meet qualification requirements (on top of standard I-REC requirements). Peace REC project developers submit projects for qualification to EPP following an initial pre-screening. After EPP certifies that a project meets Peace REC project requirements, the developer can sell buyers any Peace RECs they are issued (based on the project’s verified MWh electricity generation).
While EPP can facilitate buyer-seller conversations, EPP does not sell Peace RECs.
How do companies procure Peace RECs?
Companies procure Peace RECs from project developers directly or have their respective advisory firms execute these transactions on their behalf. Advisory firms with the “Experienced P-REC Seller” distinction—currently including 3Degrees, ACT Commodities, and Becour—are best-suited to support buyers with integrating P-RECs into their strategy and executing transactions efficiently.
Why do companies procure Peace RECs?
Companies procure Peace RECs to maximize the environmental and social benefits of their clean energy and sustainability strategy. More specifically, companies use Peace RECs to elevate the social impact of their Scope 2 emission reduction strategy, address the Scope 2 emissions from value chain partner electricity use, support new projects, and optimize procurement for avoided emissions impact.
What is the impact of Peace RECs?
Peace RECs provide catalytic financing for new renewable energy mini-grids plus connected new community projects—such as public street lighting, agricultural productive use hubs, and school and health center electrification—that the mini-grid powers. Because revenues from Peace REC sales directly help finance these projects, the RE100 initiative considers Peace RECs an “additional, voluntary label” associated with renewable energy purchasing and provides additional recognition to buyers that procure Peace RECs.
Who develops Peace REC projects?
Peace REC project developers include various local entrepreneurial and professional firms that operate in highly complex and challenging environments to extend renewable energy access to some of the world’s hardest-to-reach communities.
What Peace RECs are available?
This public dashboard provides details about currently available Peace RECs and offers a preview of the Peace REC supply pipeline to promote market transparency.
Are buyers already purchasing Peace RECs?
Yes: Microsoft, Google, Block, and Oriflame have already procured Peace RECs. The first Peace REC transactions supported new projects in the Democratic Republic of Congo (DRC) and South Sudan. More recent deals supported new projects in Chad, Nigeria, and Somalia.
How do companies report Peace RECs they procure?
Companies can report Peace RECs similar to how they report any energy attribute certificate. This guidance further clarifies how companies can report Peace RECs across the fast-evolving landscape of regulated and voluntary climate disclosure frameworks.
How will the Peace REC scale?
EPP is preparing to launch a $11M pilot of the Peace REC Aggregation Facility (PAF), which will help streamline Peace REC transactions and expedite financing for developers.
What are Peace REC prices?
Peace REC prices depend primarily on the budget shortfall of new projects. The average price in prior transactions was $45 per Peace REC. EPP charges a fixed $2 issuance fee per Peace REC and the remainder goes to the developer. Prices may decrease after the PAF launches.
How do communities benefit from Peace REC projects?
EPP conducts frontier “peace impacts” research to evaluate the community benefits of Peace REC projects using qualitative and quantitative metrics. This research informs EPP’s thesis that renewable energy can serve as a building block for long-term peace and resilience in fragile countries.