The African Development Bank Group’s Board of Directors has approved a $5.65 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) to launch the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, an innovative initiative designed to support mini-grid development in Africa’s most fragile and energy-poor countries. The facility is being introduced as a first-of-its-kind climate finance mechanism that uses renewable energy certificates as a direct funding tool for off-grid renewable energy projects, helping unlock new revenue streams for mini-grid developers working in difficult and underserved markets.
The initiative is being co-financed by the Nordic Development Fund (NDF), which is contributing an additional $5.65 million, bringing the total facility size to $11.3 million. The fund will be managed by Camco Clean Energy in partnership with Energy Peace Partners, the organization behind the Peace Renewable Energy Certificate label. These certificates are generated exclusively from small-scale mini-grid projects located in fragile, conflict-affected, and energy-poor communities, and they are expected to be purchased voluntarily by multinational companies seeking to direct their sustainability spending toward projects with strong social and environmental impact.
Under the facility, long-term purchase agreements will be signed with eligible mini-grid developers across 14 frontier countries in Africa. In exchange for the rights to future renewable energy certificates, developers will receive upfront cash payments, giving them access to much-needed capital before projects begin generating revenue. The facility will then sell those certificates to international corporate buyers, creating a channel for hard-currency financing to flow back into fragile markets where access to commercial capital remains extremely limited. This model is expected to reduce financing barriers for private-sector mini-grid operators and make more projects bankable in high-risk settings.
The project is expected to deliver a significant development impact by bringing first-time access to reliable electricity to around 856,000 people across the 14 target countries. This includes roughly 240,000 new electricity connections and the addition of 71 megawatts of new renewable energy capacity. About half of the people expected to benefit are women, highlighting the project’s role not only in improving energy access but also in supporting more inclusive development outcomes in communities affected by fragility and conflict.
This new facility is also closely aligned with Mission 300, the joint initiative of the African Development Bank and the World Bank that aims to connect 300 million Africans to electricity by 2030. By testing a new climate finance instrument that can attract commercial participation into off-grid energy in fragile states, the P-REC Aggregation Facility is positioned as a market-shaping effort that supports the broader push for universal energy access in Africa. It demonstrates how innovative financing can help bridge funding gaps for rural electrification, especially in regions where traditional investment remains scarce.
Officials and partners involved in the initiative emphasized that the facility addresses one of the biggest barriers to rural electrification in fragile and conflict-affected countries: lack of access to capital. They described the project as an innovative and scalable solution that can convert corporate climate commitments into upfront funding for renewable energy developers, enabling more communities to benefit from clean energy. Beyond expanding electricity access, the facility is expected to contribute to improved livelihoods, stronger local economies, and better social outcomes by supporting clean energy infrastructure in some of the continent’s most vulnerable regions.
The organizations behind the initiative each bring complementary strengths to the project. SEFA plays a catalytic role in mobilizing private sector investment in renewable energy and energy efficiency across Africa through concessional finance and technical assistance. NDF contributes climate-focused financing in lower-income and fragile countries through its long-standing partnerships. Camco brings decades of experience in sustainable finance and impact investment for climate projects in emerging markets, while Energy Peace Partners focuses on using climate and finance solutions to advance peace and development in fragile regions by addressing the links between energy poverty, conflict risk, and climate vulnerability. Together, their collaboration positions the P-REC Aggregation Facility as a promising model for scaling off-grid renewable energy where it is needed most.
