News Industry

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

On the same topic
Africa air freight volumes rise 7% in March 2026 Growth slows after strong January-February surge, key routes decelerate Global cargo declines amid...
Cameroon awards five oil blocks to Murphy Oil and Octavia Four of nine blocks unassigned, reflecting cautious investor interest Deals enter...
Lotus Resources announced on Wednesday, April 29, the successful completion of the first phase of a drilling program at its Letlhakane uranium project...
President Félix Tshisekedi ordered the launch, within 30 days, of an audit covering the entire mining revenue chain, from physical shipments to...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
03

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
04

Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...

Chinese Automaker Jetour to assemble SUVs in South Africa from 2027
05

Ecobank named alongside AfDB, ECOWAS, EBID and BOAD in the April 27, 2026 corridor financing mis...

Ecobank's Quiet Inclusion in the AfDB Mission Reshapes the Abidjan-Lagos Corridor Story
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.