We believe that strategic renewable energy deployment can pay peace dividends. We promote renewable energy in communities threatened by conflict, energy poverty, and climate change. Improved technology and dramatic cost reductions have facilitated a renewable energy revolution that is sweeping much of the world. Yet conflict-affected settings often lack the incentives that have supported renewable energy investment elsewhere. Hence some of the most vulnerable communities in the world are losing out on the multiple benefits of the renewable energy boom. To address this challenge, our team has developed the Peace Renewable Energy Credit (PREC), a new category of Renewable Energy Credit (REC) that supports renewable energy markets in conflict-affected communities.
PRECs monetize new renewable energy generation in these settings in order to meet increasing corporate demand for sustainability and impact. This unlocks new capital that extends the promise of the renewable energy revolution to the planet’s most vulnerable communities.
Renewable Energy Credit
A Renewable Energy Credits (REC) is a virtual commodity which represents 1 megawatt hour (MWh) of renewable energy generated. RECs are traded in national and international markets as a key instrument for meeting climate commitments. Governments, utilities, companies and individuals purchase RECs in order to meet mandatory or voluntary sustainability goals.
Peace Renewable Energy Credit (PREC)
A PREC is a new category of REC that captures the environmental and social benefits of renewable energy generated from projects located in fragile states. Like a traditional REC, one PREC represents one megawatt hour of renewable electricity generated. However, a PREC captures additional co-benefits from the project that support peace and development for the conflict-affected communities.
EPP has identified two broad categories of co-benefits associated with PRECs: (1) PREC revenue from pre-purchase agreements is an essential component of the capital stack, without which the renewable energy systems would not be financed and built, or (2) at least 50% of PREC revenue must be used to support local social impact activities linked to the new renewable energy generation, such as increased energy access, improved public services, expanded economic opportunities, improved security lighting, or local training and capacity building.
These peacebuilding-oriented co-benefits differentiate PRECs from traditional RECs and from other environmental attribute certificates currently on the market.
PRECs are issued under the I-REC Standard, the predominant energy attribute tracking system outside Europe and North America, ensuring internationally-recognized, tradable and reliable electricity attribute tracking certificates.
To learn more about the PREC, please see our report released in partnership with the Center for Resource Solutions: download here.