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 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.
Energy Peace Partners leverages climate finance solutions to support peace in places affected by violent conflict. We believe that a paradigm shift toward climate-sensitive development can deliver enduring benefits to the planet’s most vulnerable populations. The Energy Peace Partners team brings together expertise in international peacebuilding, renewable energy, and climate security. Our efforts create an enabling environment for introducing renewable energy that can serve as the building blocks for peace.
The International Organization for Migration (IOM) is part of the United Nations system and is the leading intergovernmental organization in the field of migration. IOM is committed to the principle that humane and orderly migration benefits migrants and society. From its roots as an operational logistics agency following the Second World War, it has broadened its scope to become an essential international actor in the field of human mobility, supporting migrants across the world, developing effective responses to the shifting dynamics of migration, and a key source of advice on migration policy and practice. The Organization works in emergency situations, developing the resilience of all people on the move, and particularly those in situations of vulnerability, as well as building capacity within governments to manage all forms and impacts of mobility.
Block, Inc. (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Spiral, TIDAL, and TBD, we build tools to help more people access the economy. Square helps sellers run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services. With Cash App, anyone can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.