Largest Peace REC (P-REC) agreement to date and the first in South Sudan helps fund solar electrification of teaching hospital
San Francisco, 14 March 2022 – The largest Peace Renewable Energy Credit (P-REC) agreement to date, and the first-ever P-REC registration in South Sudan, has been executed by 3Degrees and the International Organization for Migration (IOM) with support from ARE Member Energy Peace Partners (EPP). In the agreement, 3Degrees obtained the P-RECs generated by the IOM-managed solar plant and transferred them to Block, a fast growing global technology company with a focus on financial services, to further the company’s commitment to financial inclusion and desire to support forward-looking sustainability projects. The pioneering transaction will help support the expansion of P-RECs globally.
The arrangement between 3Degrees and IOM, a United Nations organization, will allow IOM to fund the solar electrification of the Malakal Teaching Hospital, the main healthcare facility serving the city of Malakal and the surrounding region. The city of Malakal was destroyed in the country’s civil war that began in 2013 and now houses one of the largest camps for internally displaced persons (IDPs) in South Sudan. Expected to be completed in mid to late 2022, the solar electrification project will enable improved community health services by providing a reliable source of power for the hospital. The P-REC transaction also serves to pilot a funding model that can be replicated by United Nations entities and other international organizations in the field to support humanitarian and peacebuilding initiatives.
P-RECs are international renewable energy certificates (I-RECs) with a supplementary label developed and issued by EPP, which certifies the co-benefits associated with the new renewable energy generation. P-RECs serve as an innovative financing instrument that supports high impact renewable energy projects in fragile, energy poor countries. The first P-REC contract was executed in 2020 by Microsoft, and Block’s purchase now serves as the single largest P-REC acquisition to date.
Under this agreement, EPP will issue the P-RECs generated from a new IOM-managed solar plant that supplies electricity to its Humanitarian Hub at a camp that houses more than 30,000 IDPs outside the city of Malakal in South Sudan. Since 3Degrees and EPP had previously collaborated on the inaugural P-REC project, EPP again approached 3Degrees to help assess project options and navigate the contracting process. 3Degrees then entered into an agreement with IOM to obtain the P-RECs from the solar plant.
“We are grateful to IOM, 3Degrees, and Block for their collaboration and commitment in making this groundbreaking transaction a reality. EPP’s work grew out of efforts to expand renewable energy in South Sudan, one of the most fragile and least electrified countries in the world. This project fulfills the original vision of the P-REC, and we are excited about the positive impact this will have for communities in Malakal,” said Dave Mozersky, President of Energy Peace Partners. “More broadly, this highlights the value of the P-REC in mobilizing private sector actors to support high-impact projects in some of the hardest-to-reach communities.”
“We are thrilled to support another innovative P-REC transaction, which will help make a tangible difference in people’s lives,” said Steve McDougal, CEO, 3Degrees. “More and more, our customers are seeking out ways to make a greater impact through their renewable energy procurement. We applaud Block for their desire to support this meaningful project, and thank Energy Peace Partners and IOM for their partnership and collaboration to make it happen.”
“At IOM, we know we can only reach sustainability at scale by working with partners who share our vision for a greener future,” said Amy Pope, IOM’s Deputy Director General for Management and Reform. “We are thrilled to have partnered with 3Degrees and Energy Peace Partners to implement the first Peace Renewable Energy Credit agreement to date within the United Nations system. This groundbreaking initiative in South Sudan demonstrates that it is possible to transition to cleaner energy in a way that directly benefits the migrants we serve.”
“At Block we are guided by our purpose of economic empowerment and for us, P-RECs represent a unique opportunity to support global financial inclusion through high-impact renewable energy projects,” says Neil Jorgensen, Global ESG Lead at Block.