The African Development Bank Group has approved a $5.65 million reimbursable grant from the Sustainable Energy Fund for Africa to pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, an innovative financing mechanism aimed at accelerating renewable energy deployment in fragile and energy-poor regions across Africa.
Co-financed by the Nordic Development Fund with an equivalent $5.65 million contribution, the $11.3 million facility will be managed by Camco Clean Energy in partnership with Energy Peace Partners, the developer of the P-REC framework.
The facility introduces renewable energy certificates as a direct funding instrument for mini-grid projects, marking a first-of-its-kind approach. Certificates generated from small-scale renewable energy systems in conflict-affected and underserved communities will be sold to multinational corporations seeking to align sustainability investments with measurable social and environmental impact.
Under the model, the facility will enter into long-term agreements with mini-grid developers across 14 countries, including Burundi, the Democratic Republic of Congo, Nigeria, and Uganda. Developers will receive upfront capital in exchange for future certificate rights, enabling project execution in markets where access to commercial financing remains limited. The certificates will then be sold to global corporate buyers, creating a sustainable funding loop.
The initiative is expected to provide first-time electricity access to approximately 856,000 people, including nearly half women, through around 240,000 new connections and the addition of 71 MW of renewable energy capacity.
The project aligns with Mission 300, a joint initiative by the African Development Bank and the World Bank to connect 300 million people in Africa to electricity by 2030.
Officials highlighted that the facility addresses one of the most critical barriers to rural electrification—limited access to capital—particularly in fragile and conflict-affected regions. The initiative is also expected to unlock new sources of private sector funding for energy access projects while strengthening economic opportunities and improving living standards.
The P-REC Aggregation Facility represents a significant step in leveraging innovative climate finance mechanisms to expand renewable energy access and support sustainable development across Africa’s most vulnerable markets.
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