AfDB Launches $11.3m P-REC Fund for Off-Grid Power

The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has approved a $5.65 million reimbursable grant to pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, co-financed by the Nordic Development Fund for another $5.65 million.

Managed by Camco Clean Energy and Energy Peace Partners, the facility will channel upfront cash to mini-grid developers in 14 fragile African countries (Burundi, CAR, Chad, DRC, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda) in exchange for renewable energy certificates. These certificates will then be sold to global corporates, bringing hard-currency revenue to otherwise underserved energy markets.

The initiative is expected to provide 856,000 people, about half women, with first-time access to electricity through roughly 240,000 new connections and 71 MW of renewable energy capacity, supporting the AfDB–World Bank Mission 300 target of connecting 300 million Africans 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.” João Duarte Cunha, Manager, Renewable Energy Funds Division and Sustainable Energy Fund for Africa, African Development Bank Group said.

“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.” 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.” Geoff Sinclair, CEO, Camco remarked.

Sherwin Das, Managing Director, Energy Peace Partners said, “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."