• AfDB backs $11.3 million mechanism to fund mini-grids in fragile countries
• Model uses advance sales of renewable energy credits to unlock financing
• Project targets 14 countries and aims to connect over 850,000 people

The African Development Bank (AfDB) has approved $5.65 million in funding to support a new approach to electrifying underserved and fragile regions in Africa using decentralized solar systems.

The financing, approved on March 25, takes the form of a repayable grant through the Sustainable Energy Fund for Africa (SEFA). The Nordic Development Fund is providing matching co-financing, bringing the total size of the mechanism to $11.3 million.

The initiative is designed to launch a new climate finance model focused on scaling mini-grid deployment in fragile and conflict-affected countries across sub-Saharan Africa.

“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,” said João Duarte Cunha, head of the renewable energy funds division and SEFA at the AfDB. “This is the kind of market-making needed to advance Mission 300 objectives.”

At the core of the model is the use of Peace Renewable Energy Credits (P-RECs), developed by the U.S.-based nonprofit Energy Peace Partners.

The system allows mini-grid developers operating in fragile or conflict-affected areas—where access to electricity remains limited—to sell credits tied to their future renewable energy generation in advance. In return, they receive upfront financing, helping them move projects forward.

These credits are then bundled and sold to international companies with sustainability commitments. The model is designed to generate hard-currency revenue streams in markets where access to financing is often constrained.

The mechanism will be implemented by Camco Clean Energy, a fund manager focused on climate and impact investments. It will target 14 African countries, including the Democratic Republic of Congo, Niger, and Mali.

According to the AfDB, the program is expected to support the installation of 71 megawatts of renewable energy capacity and deliver around 240,000 new electricity connections, benefiting about 856,000 people.

Energy Peace Partners estimates that the global market for energy attribute certificates is worth about $1 billion. The P-REC model aims to channel part of that market toward projects in regions where electricity needs are high but financing is difficult to secure.

The International Energy Agency says 80% of people without access to electricity live in sub-Saharan Africa, with around 60% of them in fragile or conflict-affected settings.

The initiative is part of the broader Mission 300 program led by the AfDB and the World Bank, which aims to connect 300 million people to electricity across Africa by 2030.

Abdoullah Diop