2022 was a productive year for Energy Peace Partners. Amidst the complex security challenges that we face as a global community, EPP continued to advance innovative solutions that support renewable energy as a building block for peace in the world’s most fragile countries. As we look toward 2023, we remain hopeful and optimistic about our collective capacity to make a difference by increasing peace and prosperity.
 
We achieved progress in core program areas. In our Peace Renewable Energy Credit (P-REC) program, we announced new P-REC transactions in South Sudan and the Democratic Republic of the Congo (DRC). We were approved as the authorized I-REC issuer in Ethiopia and Haiti (in addition to DRC, South Sudan, Chad and Somalia). The P-REC Aggregation Fund – our solution to scaling up the P-REC instrument and amplifying its impact in sub-Saharan Africa  – moved closer towards Fund close and launch. In our Powering Peace initiative, with the Stimson Center, we co-hosted and facilitated events that continue to build momentum and consensus among stakeholders on accelerating UN peacekeeping energy transitions; we published a new report on Somalia and conducted research for an upcoming report on South Sudan. We launched our Peace Impact Research program and co-published the findings of our first data collection project on the peace impacts of a P-REC-supported renewable energy project in DRC, while completing a second data collection effort in South Sudan.
 
Our organization continued to grow. The EPP team expanded, with Stephen Otieno joining as Program Associate in our Nairobi office. Stephen is supporting the origination and qualification of a growing pipeline of P-REC projects in Africa. We added new operational and advisory partners, including Camco Clean Energy, the International Climate Finance Accelerator (ICFA) Luxembourg, Odyssey Energy Solutions, and Mercy Corps. We welcomed Rockefeller Brothers Fund and Mulago Foundation as our newest philanthropic partners.
 
We started to travel again. After a 2-year hiatus, the EPP team hit the road with field visits to P-REC project sites in the DRC, team and partner meetings in Kenya, and participation at global events in Africa, Asia, Europe, and the United States.
  
As the year draws to a close, one data point reminds us both of the scale of the challenge and the unique opportunity presented: of the nearly 800 million people without access to electricity, 86% live in fragile states. We believe that it is these conflict-affected communities who have the most to gain from the renewable energy revolution, and we remain committed to ensuring their full and equitable participation in it.

Thank you for accompanying us on this journey. We look forward to an even brighter year ahead.

Warmest wishes and happy holidays,  

The EPP team (some of whom are pictured below)

   

Major milestones and achievements in 2022

P-REC market growth
The first P-REC transaction from South Sudan was executed, involving Block and the International Organization for Migration. The transaction is funding the solar electrification of a hospital in city of Malakal, which was destroyed in the recent civil war and now houses one of the largest camps for internally displaced persons (IDPs) in South Sudan. Meanwhile, Microsoft executed its second P-REC purchase from DRC with Nuru. The transaction is funding new electricity connections and public streetlights, while contributing to the financing of a new 3.7 MW solar metro-grid. Both P-REC deals were facilitated with support from 3Degrees.

EPP and Camco partnership on the P-REC Aggregation Fund
EPP entered into a partnership with climate and impact fund manager Camco Clean Energy to launch and manage the USD 10.25 million P-REC Aggregation Fund. The Fund will leverage future P-REC sales to expand renewable energy investment in fragile states in Sub-Saharan Africa by unlocking USD 90 million in additional financing to support the deployment of 57MW of new renewable energy capacity, enabling 325,000 new connections, creating 10,000 jobs, and avoiding 650,000 tons of greenhouse gas emissions. 

Launch of Peace Impact Research program
We launched a new Peace Impact Research program focused on compiling evidence that demonstrates the potential for renewable energy to contribute to peace in order to mobilize more climate finance for fragile states. We developed a theory of change that incorporates EPP inputs and SDG impacts into the eight-pillar Positive Peace framework, developed by the Institute for Economics and Peace. We subsequently conducted our first data collection project on the peace impacts of a P-REC-supported project in the DRC. The findings offer promising new data on the pro-peace benefits of renewable energy and the positive contribution of P-REC financing. We completed a second data collection project in Malakal, South Sudan and plan to further expand the program in 2023. 

P-REC Aggregation Fund selection for ICFA Luxembourg 2022 Cohort
The International Climate Finance Accelerator (ICFA) Luxembourg selected EPP to join its 2022 cohort of fund managers who have developed innovative and impactful solutions for tackling climate change.  The 2-year accelerator program includes advisory support, financial resources, and enhanced visibility to help us launch the P-REC Aggregation Fund, which is focused on catalyzing a portfolio of high-impact renewable energy projects in 11 fragile states in sub-Saharan Africa.