AfDB Approves $11.3M for Mini-Grids to Boost Electricity Access in Nigeria and 13 African Countries

The African Development Bank (AfDB) has approved $11.3 million in renewable energy funding to expand electricity access in Nigeria and 13 other African nations. The program targets underserved and fragile communities, where reliable power supply is often scarce, aiming to bring sustainable energy solutions to high-risk areas.

The initiative, known as the Peace Renewable Energy Certificate (P-REC) program, is expected to provide electricity to approximately 856,000 people through mini-grid projects. The funding structure combines a $5.65 million AfDB grant with matching support from the Nordic Development Fund, ensuring robust financial backing for local renewable energy developers.

Camco Clean Energy and Energy Peace Partners will manage the program, using renewable energy certificates generated from small-scale projects. These certificates are sold voluntarily to multinational corporations, providing upfront capital to developers through long-term purchase agreements. This innovative model aims to overcome traditional financing barriers in conflict-prone regions.

The 14 countries set to benefit from the program include Nigeria, Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Sierra Leone, Somalia, South Sudan, Sudan, and Uganda. For Nigeria in particular, chronic power shortages in rural areas have slowed economic growth, and the new funding promises to accelerate mini-grid rollout and national electrification targets.

João Duarte Cunha, AfDB’s Renewable Energy Funds Division Manager, emphasized the importance of innovative financing mechanisms like P-REC for energy access in high-risk markets. Analysts view the program as a market-driven solution, attracting private investment to fill funding gaps and strengthen Africa’s push toward sustainable electrification.

source: Leadership