The African Development Bank Group has launched a first-of-its-kind $11.3 million financing facility aimed at expanding renewable energy access in fragile and conflict-affected regions across Africa.
The initiative, known as the Peace Renewable Energy Certificate (P-REC) Aggregation Facility, was approved with an initial $5.65 million grant from the bank, matched by equal funding from the Nordic Development Fund.
Announced as part of efforts to tackle energy poverty, the facility introduces an innovative model that converts corporate climate commitments into upfront funding for off-grid energy projects.
Under the mechanism, mini-grid developers receive early-stage capital in exchange for renewable energy certificates, which are later sold to global companies seeking to meet sustainability targets.
The programme will be managed by Camco Clean Energy in partnership with Energy Peace Partners, the originator of the P-REC certification system.
The pilot targets 14 high-risk countries, including the Democratic Republic of Congo, Nigeria and Sudan, where limited infrastructure and instability have historically constrained investment flows.
AfDB officials say the project is expected to connect more than 850,000 people to electricity, delivering about 240,000 new connections and adding 71 megawatts of renewable energy capacity.
The initiative also aligns with Mission 300, a joint programme by AfDB and the World Bank aimed at connecting 300 million Africans to electricity by 2030.
By leveraging private sector climate finance, the facility seeks to address one of the sector’s biggest challenges—limited access to affordable capital in fragile markets.
If successful, the model could redefine climate finance by scaling investment into underserved regions while reducing reliance on traditional aid and concessional funding.