Overview
The renewable energy revolution is sweeping much of the world, yet investment is limited in the countries most vulnerable to violent conflict, climate change impacts, and energy poverty. We believe that renewable energy delivers a range of positive outcomes that contribute to building peaceful, stable societies, but the communities with the most to gain are losing out on the benefits of the renewable energy boom. We have launched the Peace Renewable Energy Credit (P-REC) in order to unlock new renewable energy investment that extends the promise of the renewable energy revolution to the planet’s most vulnerable communities.
Peace Renewable Energy Credit
An Energy Attribute Certificate (EAC) is an internationally-traded virtual commodity that represents 1 megawatt hour (MWh) of renewable energy generated. Governments, utilities, companies, and individuals purchase EACs in order to meet mandatory or voluntary sustainability goals, while EACs provide renewable energy developers an additional option for monetizing generation. P-RECs extend the USD 1 billion international market in EACs to fragile, energy poor countries. They provide a market mechanism that allows developers to monetize renewable energy generated from approved projects in these countries, while providing corporate buyers with entry points to support impactful projects.
How P-RECs Work
Who benefits from P-RECs?
P-REC transactions involve buyers and sellers whose engagement results in the deployment of new renewable energy capacity in local communities:
Developers
P-RECs are sold by pioneering renewable energy developers working in fragile, energy poor countries where access to finance remains a challenge. Revenue from P-REC sales allows these developers to finance new projects or implement community impact projects, such as the electrification of health clinics and schools, installation of public street lights, and renewable energy capacity building.
P-REC Buyers
P-RECs are bought by companies, governments or other organizations to meet sustainability and social responsibility goals. P-RECs are issued under the I-REC Standard, which provides the dominant tracking system for international EACs, known as I-RECs. P-RECs are I-RECs with an additional label from Energy Peace Partners certifying the social co-benefits. P-RECs reflect both the environmental and social benefits of renewable energy generated from new projects located in fragile, energy poor settings.
Local Communities
New renewable energy projects in fragile settings enable a range of social, economic, and environmental benefits for local communities. These include creating new economic opportunities; powering health and education facilities; improving nighttime safety and security, providing opportunities for cooperation, reducing harmful emissions, and reducing revenues from illicit charcoal or diesel markets. These high impact co-benefits can contribute to building more peaceful, stable societies and differentiate P-RECs from traditional EACs currently on the market.