September 22, 2022
The Signify Foundation has been supporting the D-REC Initiative since 2021 with grant and technical assistance. The initiative, led by South Pole and Powertrust, has created a new market instrument for distributed renewable energy (DRE). This helps channel investment from leading global corporations into impactful DRE projects in emerging markets. The ultimate objective of the D-REC initiative is to reduce energy poverty while scaling corporate climate action.
Increasing access to energy to the over 700 million people living without a connection and corporate climate action, should be two sides of the same coin. The potential is in plain sight: channelling results based finance from corporate climate leaders to distributed renewable energy projects could significantly reduce energy poverty, including access to light, in underprivileged and underserved communities across sub-Saharan Africa and other developing regions.
What has been missing up to this point is the market instrument to channel this kind of finance in a clear and easily verifiable way to communities far away from the electricity grid. This is where Renewable energy certificates, and specifically Distributed Renewable Energy Certificates (D-REC’s), have an exciting role to accelerate energy access.
How it works