What are D-RECs?
What are D-RECs?
Distributed Renewable Energy Certificates (D-REC)
A D-REC is a third party-certified, verifiable, tradeable market instrument that can mobilize new sources of capital to support the deployment of newly distributed renewable energy.
The Benefits of D-RECs
Improving Project Economics
D-RECs help project developers monetize the valuable positive environmental impacts of their distributed renewable energy projects, improving project economics and making clean energy more affordable to end users.
Attracting New Sources of Capital
D-RECs assist leading global corporations and climate investors by providing access to new renewable energy investment opportunities in emerging markets.
Enabling New Commercial Models
D-RECs support multiple new commercial and transaction models, such as standing offers, unbundled purchases, contracts for differences, equity investments, climate bonds, and more.
Our ambition by 2024
250,000+
tonnes annual carbon reductions
USD 300M+
catalyzed from the private sector (~USD 100M/year level)
500,000+
sustainable livelihoods improved in underprivileged and underserved communities across the world
~2X IRR
improvement of the DRE projects
In addition to Sustainable Development Goal (SDG) 7 “Affordable and Clean Energy”, our initiative seeks to address the following SGDs:
How it works
D-RECS support multiple transaction models, one of which is highlighted below:
- A project developer installs a distributed renewable energy system, such as a solar home system, commercial rooftop system, community mini grid, or campus microgrid
- As electricity is generated, data from the renewable system is transmitted to the D-REC monitoring and tracking platform
- Generation data from multiple renewable systems are aggregated to create a D-REC in accordance with the protocols of international standards organizations
- The corporate buyer either pays a project aggregator for the D-RECs generated from the underlying projects, and proceeds of the sale flow back to the DRE project operator
- New/more capital is attracted to the project because of the improved economics
Watch our webinar recording
Watch our recent webinar on D-RECs and hear from our guest speakers how D-REC place in the context of energy access, corporate leadership innovation in impact investment and and how to overcome the finance gap to achieve SDG7.
