The African Development Bank Group (AfDB) 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. The initiative will use renewable energy certificates as a primary financing mechanism to support a portfolio of mini-grid projects across Africa. It is co-financed by the Nordic Development Fund with an additional $5.65 million, bringing the total to $11.3 million. It will be managed by Camco Clean Energy and Energy Peace Partners.
Furthermore, the facility will sign long-term agreements with mini-grid developers across 14 countries: Burundi, Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda. The initiative is expected to deliver 71 MW of renewable capacity and provide first-time electricity access to about 856,000 people.
The facility will provide upfront cash to mini-grid developers in exchange for the rights to renewable energy certificates generated by their projects. It will then sell these certificates to global corporate buyers, returning hard-currency revenues to developers in markets with limited access to commercial financing. The initiative will use renewable energy certificates as a funding instrument for mini-grid projects in fragile and energy-poor African countries.
