Peace Renewable Energy Credits: Facilitating High-Impact Projects in Fragile Regions

Join Energy Peace Partners and Center for Resource Solutions in a webinar introducing the Peace Renewable Energy Credit (PREC), a market-based instrument that can help finance new clean energy projects in fragile regions, including in peace and humanitarian missions.

Read the Report: Peace Renewable Energy Credits: Facilitating High-Impact Projects in Fragile Regions

Transitioning from diesel generators to renewable energy generation in conflict and crisis affected countries can reduce annual costs, reduce the security dangers of diesel supply chains, and curb local air and water pollution. Long-lasting clean energy assets can serve as building blocks for peace and development in the post-conflict phase by increasing energy access, encouraging follow-on investment, creating new revenue streams, seeding local businesses, and creating jobs.

Transcript

2. 2 Nongovernmental Organization (NGO) creating policy and market solutions to advance sustainable energy since 1997. • Renewable energy and climate policy • Educational programming, including Renewable Energy Markets annual conference • Green-e® certification for suppliers and users of renewable energy and carbon offsets in the voluntary market About Center for Resource Solutions Copyright © 2019 Center for Resource Solutions. All rights reserved.
3. 3 Upcoming Events www.resource-solutions.org/events Copyright © 2018 Center for Resource Solutions. All rights reserved.
5. 5 • Introduction • Renewable Energy Markets and Drivers • Peace Renewable Energy Credits (PRECs) • PRECs as an Instrument for Market Development • Market Considerations and Dynamics Outline Copyright © 2019 Center for Resource Solutions. All rights reserved.
6. 6 Introduction Copyright © 2019 Center for Resource Solutions. All rights reserved.
7. 7 By the numbers Copyright © 2019 Center for Resource Solutions. All rights reserved. 68+ Million: Displaced people in the world today, the highest number on record. $1.2 Billion: Estimated annual cost of energy (diesel + generators) in humanitarian operations. $35+ Billion: Humanitarian aid and peacekeeping spending in 2017, increasing each year.
8. 8 Current UN Peacekeeping Missions Copyright © 2019 Center for Resource Solutions. All rights reserved.
9. 9 Overlapping Threats: Countries with highest rates of Conflict Risk, Climate Vulnerability and Energy Poverty Copyright © 2019 Center for Resource Solutions. All rights reserved.
10. 10 Why the PREC? Copyright © 2019 Center for Resource Solutions. All rights reserved. • Renewable energy (RE) investment nearly $334 BN in 2017 • Nearly 75% of all climate finance goes to RE • Only 5% of climate finance goes to Africa and Middle East combined • Fragile states lack the economic incentives supporting RE growth elsewhere • PREC helps connect the positive momentum in RE to fragile states • Aims to help create long-lasting energy assets, building blocks for peace and development
11. 11 Renewable Energy Markets and Drivers Copyright © 2019 Center for Resource Solutions. All rights reserved.
12. 12 Quick facts: • Global installed non-hydro RE capacity as of 2017: 1,152 GW • New capacity added in 2017: 146 GW • 85% of new capacity additions are from solar and wind • China, India, and Japan are seeing large growth in solar Renewable Energy Markets Copyright © 2019 Center for Resource Solutions. All rights reserved.
13. 13 • Feed-in tariff (FIT) and other preferential rates/tariffs • Tax incentives, rebates, other financial incentives • Carbon regulation • Government mandates (e.g. quotas, RPS) Policy and Financial Incentives Copyright © 2019 Center for Resource Solutions. All rights reserved.
14. 14 • Above and beyond government requirements • Global trend: increased purchasing • companies concentrated in the U.S. and EU, but corporate sourcing is occurring in 75 countries • 1 in 5 corporations has a RE target • 152 companies have made 100% RE commitments through RE100 • As of May 2018: global corporate sourcing of RE reached 465 TWh • 165 TWh Self-consumption • 130 TWh unbundled RECs Voluntary Renewable Energy Market Trends Copyright © 2019 Center for Resource Solutions. All rights reserved.
15. 15 Renewable Energy Certificates Copyright © 2019 Center for Resource Solutions. All rights reserved.
16. 16 Growing successful renewable energy markets requires: Copyright © 2019 Center for Resource Solutions. All rights reserved. 1. Real delivery of specified generation (attributes) 2. Consumer confidence 3. No double counting or double claiming 4. Ongoing interaction with regulatory structure 5. Regulatory surplus 6. Products that meet customer preferences and needs
17. 17 Renewable Energy Procurement Models Copyright © 2019 Center for Resource Solutions. All rights reserved. Bundled Utility Green Pricing Utility Green Tariff Competitive Electricity Power Purchase Agreements (PPAs) Community Choice Aggregation Community/Shared Renewables On-site OR Unbundled RECs Virtual PPAs • ALL product types require and include RECs to prove delivery • Bundled = RECs + electricity • Unbundled = RECs (no electricity)
18. 18 • Surge in power purchase agreements signed by corporations in the U.S. • Strong interest from large corporations in building new projects • Many unbundled REC purchasers favor projects with specific properties (local, particular technology, community/social benefits) • Purchaser preferences to meet program and reporting goals, such as CDP, RE100, and Green-e certification Voluntary Market Procurement Trends Copyright © 2019 Center for Resource Solutions. All rights reserved.
19. 19 Peace Renewable Energy Credits Copyright © 2019 Center for Resource Solutions. All rights reserved.
20. 20 • PREC are a variant of a traditional REC, issued from projects in fragile settings • Issued by Energy Peace Partners under the International REC Standard (I-RECs) • 1 PREC represents 1 MWh of RE generated, in addition to social and environmental co-benefits from PREC projects • Currently developing PREC pilot projects in South Sudan, Democratic Republic of Congo (DRC), Haiti, Uganda, Somalia and Lebanon The Peace Renewable Energy Credit (PREC) Copyright © 2019 Center for Resource Solutions. All rights reserved.
21. 21 • Local and climate benefits • Peace benefits: RE projects can help support peace and development goals in fragile states • South Sudan: Leveraging the crisis response footprint to create assets for post-conflict recovery (Malakal IDP camp) • DRC: Virunga using energy (hydro) to support economic growth, conservation and peace in Eastern DRC • Lebanon: new project planning spurred local border agreement • EPP developing new methodology to track and verify the “P” in PREC • Financial benefits: help bridge the funding gap Social and environmental co-benefits, Building Blocks for Peace Copyright © 2019 Center for Resource Solutions. All rights reserved.
22. 22 PRECs as an Instrument for Market Development Copyright © 2019 Center for Resource Solutions. All rights reserved.
23. 23 PRECs as an Instrument for Market Development Copyright © 2019 Center for Resource Solutions. All rights reserved. • Creating voluntary market infrastructure • Impact • Credibility • Investment • Prepaid strips • Bundled PPA • Bundled VPPA
24. 24 Copyright © 2019 Center for Resource Solutions. All rights reserved. Investment - Power Purchase Agreement Energy System Owner/Developer • Provides energy (kWh) and PRECs • Receives PPA (including bundled PREC) price Energy User (humanitarian agency) • Receives energy (kWh) and PRECs • Pays PPA (including bundled PREC) price kWhs & PRECs Fixed Price
25. 25 Copyright © 2019 Center for Resource Solutions. All rights reserved. Investment – Virtual Power Purchase Agreement Energy System Owner/Developer • Provides energy (kWh) and PRECs • Receives VPPA (including bundled PREC) price kWhs ‘Spot’ Price Energy User (local communities) • Receives energy (kWh) • Pays ‘spot’ market rate, a discount to cost of diesel VPPA Counterparty • Receives PRECs • Guarantees energy floor price; pays when ‘spot’ price is below floor, profits when ‘spot’ price is above floor PRECs $$ $$
26. 26 Market Considerations and Dynamics Copyright © 2019 Center for Resource Solutions. All rights reserved.
27. 27 • Pricing • Available product options • RE reporting practices / Scope 2 guidance • Standardization of benefits • Data integrity and verification • Renewable energy claims Market Considerations and Dynamics Copyright © 2019 Center for Resource Solutions. All rights reserved.
28. Contact David Mozersky Energy Peace Partners dmozersky@energypeacepartners.com Katie Retz Energy Peace Partners kretz@energypeacepartners.com Rachael Terada Director, Technical Projects Center for Resource Solutions rachael.terada@resource-solutions.org 415-561-2135
29. 29 Q&A Copyright © 2018 Center for Resource Solutions. All rights reserved.
30. NOTICE: This presentation is the copyrighted property of Center for Resource Solutions (CRS). It cannot be copied, reprinted or used in any way without permission of CRS. If you wish to obtain permission to use our copyrighted materials, please contact CRS at +1-415-561-2100 or info@resource-solutions.org