Nigeria and 13 other African countries are set to benefit from a $5.65 million grant approved by the African Development Bank (AfDB) to support renewable energy development across fragile and underserved communities.
The funding, provided through the Sustainable Energy Fund for Africa (SEFA), will pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, an initiative designed to unlock financing for mini-grid projects in energy-poor regions.
The facility, co-financed with the Nordic Development Fund with a matching $5.65 million contribution, brings the total funding to $11.3 million.
It will be managed by Camco Clean Energy and Energy Peace Partners.
Other beneficiary countries include Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda.
The initiative will enable long-term purchase agreements with mini-grid developers, providing upfront capital in exchange for renewable energy certificates, which will be sold to global corporate buyers.
The project is expected to deliver electricity access to about 856,000 people through roughly 240,000 new connections and 71 megawatts of renewable energy capacity, particularly in conflict-affected areas.
AfDB officials noted that the initiative aligns with “Mission 300,” a joint programme with the World Bank aimed at connecting 300 million Africans to electricity by 2030.
“Lack of access to capital for rural electrification continues to be a major hurdle for universal energy access in the African continent, particularly in countries experiencing conflicts and fragility. I am proud that SEFA is backing this innovative, first-of-a-kind facility testing a new climate finance product capable of unlocking new sources of commercial funding for private sector led mini-grids.
“This is the kind of market-making needed to advance Mission 300 objectives,” said João Duarte Cunha, Manager, Renewable Energy Funds Division and Sustainable Energy Fund for Africa, African Development Bank Group.
“Countries in Sub‑Saharan Africa facing fragile and conflict‑affected situations urgently need support and access to clean, reliable energy solutions. At NDF, we are proud to contribute to the Innovative Peace Renewable Energy Certificate (P‑REC) Aggregation Facility, which helps bring small‑scale, off‑grid renewable energy to communities with no, limited or disrupted energy access. By supporting this initiative, we also strengthen the role of Nordic climate leadership – working in partnership, through innovation and responsibility, to advance sustainable energy solutions where they are needed most,” added Satu Santala, Managing Director, Nordic Development Fund (NDF).
“PAF will provide additional low-cost, non-dilutive capital to energy access projects in fragile states. In doing so, it will provide more communities with access to the benefits of clean energy, boosting jobs, opportunities, and living standards. Camco is pleased to be working with EPP, SEFA and NDF on this important initiative,” noted Geoff Sinclair, CEO, Camco.
“The majority of people on the continent without access to electricity live in fragile and conflict-affected countries where renewable energy projects can have outsize impacts – improving health, education, safety and security outcomes.
The P-REC Aggregation Facility, based on EPP’s Peace-REC label, can accelerate that transition by converting corporate climate ambition into upfront capital for renewable energy developers who would otherwise struggle to close their projects,” stated Sherwin Das, Managing Director, Energy Peace Partners.