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

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   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
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3. 3
   Upcoming Events
   www.resource-solutions.org/events
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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
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6. 6
   Introduction
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7. 7
   By the numbers
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   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.
   

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   Current UN Peacekeeping Missions
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   Overlapping Threats:
   Countries with highest rates of Conflict Risk, Climate
   Vulnerability and Energy Poverty
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10. 10
    Why the PREC?
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    • 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
    

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    Renewable Energy Markets and Drivers
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    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
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    • 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
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    • 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
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15. 15
    Renewable Energy Certificates
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    Growing successful renewable energy
    markets requires:
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    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
    

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    Renewable Energy Procurement Models
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    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)
    

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    • 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
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19. 19
    Peace Renewable Energy Credits
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    • 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)
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    • 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
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    PRECs as an Instrument for Market
    Development
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    PRECs as an Instrument for Market
    Development
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    • Creating voluntary market infrastructure
    • Impact
    • Credibility
    • Investment
    • Prepaid strips
    • Bundled PPA
    • Bundled VPPA
    

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    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
    

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    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
    $$
    $$
    

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    Market Considerations and Dynamics
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    • Pricing
    • Available product options
    • RE reporting practices / Scope 2 guidance
    • Standardization of benefits
    • Data integrity and verification
    • Renewable energy claims
    Market Considerations and Dynamics
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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
    

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29. 29
    Q&A
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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
    

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