KEY POINTS
- AfDB approves $5.65 million grant, co-financed to $11.3 million, for mini-grid projects in 14 African countries
- P-REC facility to provide upfront funding to developers and expand electricity access to 856,000 people
- Initiative aims to bridge rural electrification financing gaps and scale renewable energy in fragile regions
The African Development Bank, AfDB, has approved a $5.65 million grant to support Peace Renewable Energy Certificate mini-grid projects across 14 African countries, targeting improved electricity access for about 856,000 people.
The funding, announced in a statement on the website of Afdb, is designed to deploy renewable energy certificates as a direct financing tool for mini-grids in fragile and energy-poor communities.
The grant by the AfDB will be co-financed with an equal contribution of $5.65 million from the Nordic Development Fund, bringing the total facility size to $11.3 million.
The initiative will be jointly managed by Camco Clean Energy and Energy Peace Partners, a non-profit organisation that developed the Peace Renewable Energy Certificate label. The certificates will be sourced from small-scale mini-grid projects in conflict-affected areas and purchased voluntarily by multinational corporations seeking to enhance the social and environmental impact of their sustainability investments.
The facility will enter long-term purchase agreements with mini-grid developers across Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda. Developers will receive upfront cash payments in exchange for the rights to the renewable energy certificates, which the facility will then sell to global corporate buyers. This structure is expected to channel hard currency into markets where commercial financing remains limited.
Stakeholders highlight financing gap in rural electrification
Stakeholders involved in the initiative said limited access to capital remains a major barrier to rural electrification in Africa, particularly in fragile and conflict-affected countries. Representatives from the AfDB, Nordic Development Fund, Camco, and Energy Peace Partners described the P-REC Aggregation Facility as an innovative mechanism to unlock funding and accelerate energy access.
They noted that the facility will provide low-cost capital to developers, expand clean energy access, and improve livelihoods in underserved communities. The initiative is also expected to support health, education, and economic opportunities in regions where electricity access remains low.
The project will serve as a pilot to scale corporate-backed renewable energy funding across fragile African markets. In related developments, Nigeria previously set a $500 million renewable energy funding target with a United Nations agency, while the Rural Electrification Agency deployed more than 200 mini-grids nationwide in 2025 to support underserved communities.
