The African Development Bank (AfDB) has approved a $5.65 million grant to support Peace Renewable Energy Certificate (P-REC) mini-grid projects across 14 African countries, targeting electricity access for 856,000 people.
The initiative, disclosed on the Bank’s website on Wednesday, will deploy renewable energy certificates as a direct funding instrument for mini-grids in Africa’s most fragile and energy-poor nations.
The facility is co-financed with an equal contribution of $5.65 million from the Nordic Development Fund (NDF), creating a total $11.3 million fund. Management will be jointly handled by Camco Clean Energy and Energy Peace Partners.
The P-REC certificates will be sourced exclusively from small-scale mini-grid projects in conflict-affected and energy-poor communities. These certificates are purchased voluntarily by multinational corporations seeking to maximize the social and environmental impact of their sustainability investments.
The facility will enter long-term purchase agreements with eligible mini-grid developers in 14 frontier countries: Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda. Developers will receive upfront cash payments in exchange for the rights to the certificates, which the facility will then sell to global corporate buyers, channeling much-needed hard currency into markets where commercial financing is scarce.
In 2025, Nigeria and a United Nations agency set a $500 million target for a renewable energy fund accessible to local developers. Meanwhile, the Rural Electrification Agency deployed more than 200 mini-grids across underserved communities nationwide that year.
The P-REC Aggregation Facility will serve as a pilot programme to scale corporate-backed renewable energy funding in Africa’s fragile regions, addressing both energy poverty and economic inclusion.
