Abidjan: The African Development Bank Group’s Board of Directors has approved a $5.65 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) to pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility. The initiative will, for the first time, use renewable energy certificates as a direct funding instrument for a portfolio of mini-grids across some of Africa’s most fragile and energy-poor countries.
Co-financed with the Nordic Development Fund, which has committed an equivalent $5.65 million, the $11.3 million facility will be managed by Camco Clean Energy, a climate and impact fund manager, and Energy Peace Partners, a US-registered non-profit that developed the Peace Renewable Energy Certificate label. These certificates will be generated exclusively from small-scale mini-grid projects in conflict-affected and energy-poor communities and will be voluntarily purchased by multinational companies aiming to direct their sustainability spending toward high-impact social and environmental outcomes.
The facility will enter into long-term purchase agreements with eligible mini-grid developers across 14 frontier countries—Burundi, Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan and Uganda. It will provide developers with upfront cash payments in exchange for rights to the certificates generated by their projects. These certificates will then be sold to global corporate buyers, enabling a flow of hard currency back to developers in markets where access to commercial financing remains limited.
As a result of the initiative, around 856,000 people across these countries are expected to gain first-time access to reliable electricity. This includes approximately 240,000 new connections and the addition of 71 megawatts of renewable energy capacity, with nearly half of the beneficiaries expected to be women.
The project is aligned with Mission 300, a joint initiative of the African Development Bank and the World Bank aimed at connecting 300 million people in Africa to electricity by 2030. The Nordic Development Fund is contributing to these goals through its renewable energy portfolio and its role in the Development Partner Coordination Group.
João Duarte Cunha, Manager of the Renewable Energy Funds Division and SEFA at the African Development Bank Group, said that limited access to capital remains a major challenge for rural electrification, especially in fragile and conflict-affected countries. He noted that the facility represents an innovative approach to unlocking new sources of commercial funding for privately led mini-grid projects.
Satu Santala, Managing Director of the Nordic Development Fund, said that countries in Sub-Saharan Africa facing fragile conditions urgently need access to clean and reliable energy. She added that the initiative would help deliver off-grid renewable energy solutions to communities with little or no access to electricity.
Geoff Sinclair, CEO of Camco, said the facility would provide additional low-cost funding to energy access projects, helping improve living standards and create opportunities in underserved communities.
Sherwin Das, Managing Director of Energy Peace Partners, said that many people without access to electricity live in fragile and conflict-affected regions, where renewable energy projects can significantly improve health, education and safety outcomes. He added that the initiative could help convert corporate climate commitments into upfront funding for developers who often face difficulties in securing financing.
