African Development Bank And NDF Launch $11.3 Million Sustainable P-REC Facility To Fund Clean Energy Mini-Grids In Fragile African Countries

The African Development Bank Group’s Board of Directors has approved a reimbursable grant of $5.65 million from the Sustainable Energy Fund for Africa (SEFA) to launch the Peace Renewable Energy Certificate (P-REC) Aggregation Facility. This initiative is the first of its kind and aims to use renewable energy certificates as a direct source of funding for mini-grid projects in some of Africa’s most fragile and energy-poor countries.

The Nordic Development Fund (NDF) is co-financing the facility with an equal contribution of $5.65 million, bringing the total funding to $11.3 million. The facility will be jointly managed by Camco Clean Energy, a fund manager focused on climate and impact investments, and Energy Peace Partners, the organisation that created the Peace Renewable Energy Certificate label. P-RECs are generated exclusively by small-scale mini-grid projects in communities affected by conflict and lacking reliable electricity. These certificates are voluntarily purchased by multinational companies that want their sustainability investments to contribute to meaningful environmental and social outcomes.

The P-REC Aggregation Facility will establish long-term purchase agreements with eligible mini-grid developers operating across 14 fragile countries: Burundi, Central African Republic, Chad, the 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 certificates produced by their projects. The facility will then sell these certificates to international corporate buyers, generating hard currency revenue for developers working in markets where access to commercial financing remains extremely limited.

Satu Santala, Managing Director of the Nordic Development Fund, highlighted the urgent need for clean and reliable energy solutions in fragile and conflict-affected areas. She said that the P-REC Aggregation Facility will help bring small-scale, off-grid renewable energy to communities with no or disrupted energy access, while also strengthening Nordic climate leadership and innovation.

Geoff Sinclair, CEO of Camco, stated that the facility will offer affordable, non-dilutive capital to energy access projects in fragile states, helping bring clean energy to more communities and support improvements in jobs, economic opportunities and living standards. He expressed appreciation for the partnership with Energy Peace Partners, SEFA and NDF.

Sherwin Das, Managing Director of Energy Peace Partners, added that many of those without access to electricity in Africa live in countries facing fragility and conflict, where renewable energy projects can have significant positive impacts. He said the P-REC Aggregation Facility can accelerate progress by turning corporate climate commitments into upfront funding for developers who often struggle to secure financing.

João Duarte Cunha, Manager of the Renewable Energy Funds Division and SEFA at the African Development Bank Group, noted that limited access to capital continues to be a major barrier to rural electrification in Africa, especially in countries affected by conflict. He emphasised that SEFA’s support for this innovative facility will help create new pathways for commercial financing and play an important role in advancing Mission 300.

The initiative is expected to bring first-time access to electricity for around 856,000 people across the 14 countries, with women representing roughly half of the beneficiaries. The project aims to enable around 240,000 new electricity connections and support the development of 71 megawatts of new renewable energy capacity. This programme closely aligns with Mission 300, a joint initiative of the African Development Bank and the World Bank aimed at connecting 300 million Africans to electricity by 2030. NDF is supporting Mission 300’s goals through its extensive renewable energy investments and its role within the Development Partner Coordination Group.