A Distributed Renewable Energy Certificate (D-REC) represents one kilowatt-hour (kWh) of electricity that has been generated from distributed renewable energy sources. It allows companies to sell the renewable energy attributes that originated from small installations, such as Solar Home Systems or mini-grids.
In many developed markets, large corporations with big climate ambitions buy renewable energy as part of their commitment to reduce their greenhouse gas emissions. This sort of financing remained out of reach for most companies in the Energy Access sector until very recently.
Climate investments can do more than reduce a company’s carbon footprint. The D-REC allows smaller-scale, distributed renewable energy (DRE) providers access to the corporate demand for renewables. Developers like mini-grid operators and SHS companies can now integrate into an open source platform which will track, verify, and monetise every MWh of electricity – bringing a new income stream to the Energy Access sector.
Powertrust is the company managing the commercialisation of the D-REC Initiative. Sign up on the Powertrust platform to start generating D-REC certificates. After registration, each kWh can generate income.
EnAccess will help guide you through the process of integrating or talking you through the platform.
The D-REC Github Repository holds the open source code that powers the D-REC Initiative. An Open Source foundation means that anyone can inspect the underlying logic and gain confidence in the platform.
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The D-REC is enabling distributed renewable energy developers to access climate financing that previously was only available to large-scale C&I projects.
This document goes over the need for DRECs, which are building on IRECs. We now understand that IRECs don’t lend themselves great for the DRE market, so DRECs are being developed to work in parallel to the IRECs.
Now that we know why the D-REC is needed, we explore what it will actually look like in this document.
Still not sure what D-RECs are about? Read this blog post that explains (simply) how the D-REC creates new opportunities for the Energy Access sector and for corporate climate investors.
Topics covered: How do D-RECs work, and where can I get started? Why is D-RECs built on open source technology? What are the reasons for choosing the D-REC platform?