Switzerland- based D-REC, a new not-for-profit initiative to deliver internationally recognised guarantees of origin for distributed renewable energy, has announced its results for 2022, with over 300,000 MWh secured in annual and multi-year deals across a diverse range of global corporations.
Distributed Renewable Energy Certificates (D-REC) accelerate the energy transition in developing countries, delivering enhanced social good while reducing energy poverty. The new off-grid mechanism is set for exponential growth in 2023, as businesses look to transform green energy procurement, deliver additionality, and embrace transparency
Following its first operational year, D-REC contracts were agreed with the likes of diversified global investment group Prosus, and a major multinational technology business, among others.
The D-REC can be incorporated as a complementary tool in a corporate renewable energy purchasing portfolio, alongside conventional renewable energy certificates. It does not rely on utility level grid connectivity, operating instead at a regional and localised off-grid level to deliver rural electrification, traceability, bespoke solutions, and heightened social impact – components that are increasingly rising towards the top of corporate ESG manifestos.
Equally, a lack of access to the traditional REC market, in locations such as the countries of Sub-Saharan Africa, makes D-RECs a compelling proposition for businesses seeking to procure clean energy in such territories.
Gian Autenrieth, Co-Lead, D-REC Initiative said, “We are immensely proud of the strides made last year. I am confident 2023 will substantially eclipse those results, as more companies become familiar with D-RECs and their clear advantages in creating pathways for global corporates to secure transparent Scope 2 emissions reduction and make meaningful impact in financing the energy transition in emerging economies.
“We are being told by business leaders that they are looking for more refined and differentiated options in the market, not a one-size-fits-all. They want to trust the model, know the detail, understand the means of production, and the resultant benefit that is produced. They also want to see that their RE procurement actually supports the deployment of new installations and improves the reliability and affordability of clean energy in these markets. I’m immensely proud of the work our team is delivering and look forward to yet another year of outstanding progress in our journey to drive the energy transition where it matters most.”
The D-REC Initiative is led by South Pole and Powertrust, with support from the Shell Foundation, Good Energies Foundation, Signify Foundation, GIZ-DeveloPPP, the UK’s Foreign, Commonwealth and Development Office (FCDO), International Finance Corporation (IFC), British International Investment (BII), USAID and the Swiss Agency for Development and Cooperation (SDC). D-REC will become a fully independent not-for-profit entity in 2023.
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