Positive Capital Partners and the South Pole have joined other international financial institutions and global humanitarianisms to develop a platform that helps to form a global market for distributed renewable energy (DRE). This partnership is known as the D-REC Initiative. It is led by Positive Capital Partners and the South Pole with the support of Good Energies Foundation, Signify Foundation, Shell Foundation, and EnAccess Foundation.
Since there are 840 million people who cannot access power and more than $500 billion is needed each year up to 2040 to help meet the ever-increasing power demand, the D-REC Initiative’s goal is to direct climate finances from the private sector to help fill this crucial gap. The D-REC platform would help to speed off new renewable energy investments and result-based climate finance for faster power distribution around the world.
Paul Needham, Positive Capital Partners’ Managing Director, said that in developed markets, the energy transition leaders are private sectors, deploying green energy via investment and procurement activities. The D-REC Initiative offers climate investors and global corporations new mechanisms to expand and speed off the power transition in emerging markets. Needham added that this would help deliver clean power where the demand is high.
The D-REC platform will enable companies to go beyond their RE100 commitments or corporate renewable energy goals. Companies will be able to expand their renewable power engagement to upcoming markets by buying third-party certified D-RECs. The D-RECs’ purchases would help these companies mobilize new capital sources for fast distributed renewable energy projects deployment. This would assist communities off the grid in rural areas to access power.
D-RECs will only apply to off-grid, small-scale, and distributed renewables, making it available in technologies and markets where environmental accredits are not applicable. The essential thing is that the D-RECs would capture the related ecological and social renewable energy benefits. Interested companies would receive the first D-RECs issuance in Q4 2021.
Stephanie Jones, Good Energies Foundation Clean Energy Program Manager, said that it is commendable that investors are switching to climate-positive businesses. However, small-scale, distributed systems do not receive the funding they deserve as financing streams always abandon them. Stephanie added that the D-REC Initiative would help people who currently lack electricity to access power.
Many organizations and companies worldwide are doing what they can to ensure people in rural areas access to power and lead in the energy transition. Shifting to clean power would help decrease greenhouse gas emissions, helping the world fight climate change.https://newswinters.com/