INSTRUMENT ANALYSIS SEPTEMBER 2021 PEACE RENEWABLE ENERGY CREDIT (P-REC) AGGREGATION FUND

The P-REC Aggregation Fund monetizes Peace Renewable Energy Credits (P-RECs)—a high-quality type of International Renewable Energy Certificate (I-REC) with peacebuilding co-benefits—to provide upfront capital to renewable energy developers in fragile states. By aggregating these certificates and selling them to impact-seeking corporations (such as RE100 members), the Fund aims to provide developers with approximately 10% of construction costs, thereby unlocking further infrastructure finance. The report models a 13-year proof-of-concept phase with a USD 10.25 million fund size, projecting the generation of 812,116 P-RECs and the avoidance of approximately 658,000 tCO2e of emissions.

• The P-REC Aggregation Fund provides project developers with upfront revenue equivalent to approximately 10% of construction costs in exchange for ownership of P-RECs generated over typically the first ten years of operation.
• The Fund is designed to be catalytic, with the potential to unlock nine times more capital from other sources; specifically, USD 16 invested can help abate one tCO2e and USD 31.5 can provide energy access to one household.
• Financial modeling for the 13-year proof-of-concept phase indicates the Fund is viable, with a projected net operating surplus starting in year 4 under both optimistic and conservative scenarios.
• The Fund targets a total capacity of 57MW in its proof-of-concept phase, which is expected to generate 812,116 P-RECs and connect 325,000 households to renewable energy sources.
• The instrument aims to avoid approximately 658,000 tCO2e of greenhouse gas emissions during the proof-of-concept phase, equivalent to the annual emissions of 143,000 fossil fuel cars.
• The Fund addresses critical barriers in fragile economies, including limited investment due to country and local currency risks, and weak access to construction finance, by offering dollar-denominated investments and legally binding lump-sum payments at the Commercial Operation Date (COD).
• The Fund's target market is implemented in two stages: Stage 1 focuses on DRC, South Sudan, Chad, Somalia, Uganda, and Ethiopia; Stage 2 expands to Sudan, Nigeria, CAR, Liberia, and Mali.
• P-RECs are positioned as a premium product compared to generic I-RECs, with initial spot prices 10-15 times higher due to their associated socio-economic impacts in fragile regions.

APA

Climate Policy Initiative (2021). INSTRUMENT ANALYSIS SEPTEMBER 2021 PEACE RENEWABLE ENERGY CREDIT (P-REC) AGGREGATION FUND. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/P-REC-Aggregator-Fund_Instrument-Analysis.pdf

Chicago

Climate Policy Initiative. INSTRUMENT ANALYSIS SEPTEMBER 2021 PEACE RENEWABLE ENERGY CREDIT (P-REC) AGGREGATION FUND. 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/P-REC-Aggregator-Fund_Instrument-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INSTRUMENT ANALYSIS SEPTEMBER 2021 PEACE RENEWABLE ENERGY CREDIT (P-REC) AGGREGATION FUND |date=September 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/P-REC-Aggregator-Fund_Instrument-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021instrument, author = {{Climate Policy Initiative}}, title = {{INSTRUMENT ANALYSIS SEPTEMBER 2021 PEACE RENEWABLE ENERGY CREDIT (P-REC) AGGREGATION FUND}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/P-REC-Aggregator-Fund_Instrument-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }