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Unlocking Value: The Case for Certification in African Solar Energy

Unlocking Value: The Case for Certification in African Solar Energy
Tuesday, 22 July 2025 08:08

Even as solar power generation increases across Africa, few producers are currently certifying their energy on sustainable markets. This mechanism, however, offers significant untapped economic potential.

On Wednesday, July 16, Egyptian cement producer Arabian Cement Company (ACC) became the first African company to register its solar power plant with the International Renewable Energy Certificate (I-REC) system. This move comes as solar energy production grows across Africa, with 2.4 gigawatts of installed capacity in 2024 and an expected market growth of over 42% in 2025, according to the Global Solar Council. This highlights the strategic value that voluntary certification can offer producers on the continent for at least five reasons.

First, certification proves the renewable origin of produced electricity. In an environment where the credibility of environmental claims faces increasing scrutiny, certification helps differentiate between electricity merely claimed as green and that which is actually verified. Through the I-REC system, a producer can certify in a standardized and audited manner that each megawatt-hour comes from a renewable source. This certificate, issued and recorded via an international platform, is a recognized traceability tool in international emission reporting frameworks.

Second, it creates value for production among actors concerned with traceability. By officially certifying the renewable origin of their electricity, African producers can meet specifications that include sustainability criteria, especially in sectors facing growing environmental requirements. In cement, mining, or agribusiness, voluntary certification allows for tracing the energy used in carbon footprint reduction efforts.

Third, it helps producers stand out in an environment with limited regulation. In most African countries, regulation on green electricity traceability is limited or nonexistent. In this context, a producer engaging in voluntary certification anticipates market expectations without waiting for binding frameworks. This mechanism is a concrete way to stand out, particularly in commercial partnerships or tenders where environmental performance, though not formally required, is increasingly considered in project selection.

Fourth, it facilitates access to certain financing or tenders. Several international donors and development finance institutions condition part of their support on verifiable environmental commitments. Renewable electricity certification can be a valued element during a project’s technical or environmental, social, and governance assessment. Organizations such as the International Finance Corporation (IFC), the French Development Agency (AFD), and the African Development Bank (AfDB) include climate performance criteria in their selection mechanisms, particularly for industrial and energy sectors.

Finally, certification helps producers anticipate regulatory and commercial shifts. In a global environment marked by rising climate requirements, several markets are tightening transparency obligations on the carbon footprint of imported products. The European Union’s Carbon Border Adjustment Mechanism (CBAM) illustrates this trend by gradually requiring exporters to report emissions linked to their production. In this context, certification allows African producers to verifiably trace the share of decarbonized energy used in their production process.

Despite these advantages, the implementation of certification through the I-REC mechanism remains limited in Africa. In most countries, it faces the absence of a clear regulatory framework, an operational national registry, and incentive mechanisms. According to IRENA, only a few African states currently have an environment conducive to green electricity certification.

Abdel-Latif Boureima

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