The Distributed Renewable Energy Certificate (D-REC) Initiative has announced that it has secured over 300,000 megawatt hours (MWh) in annual and multi-year renewable energy deals across a diverse range of global corporations during 2022 alone.
The D-REC Initiative was set up to help accelerate the energy transition in developing countries, delivering enhanced social good while reducing energy poverty. 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 new off-grid mechanism is set for exponential growth in 2023, as businesses look to transform green energy procurement, deliver additionality, and embrace transparency.
D-REC’s 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.
“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,” said Gian Autenrieth, co-lead of the D-REC Initiative.
“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 am 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.”