The African Development Bank (AfDB) has greenlit a $11.3 million renewable energy fund to boost electricity access in Nigeria and 13 other African countries, targeting underserved and fragile communities.

This Peace Renewable Energy Certificate (P-REC) initiative will power an estimated 856,000 people in high-risk regions through mini-grid projects. It combines a $5.65 million AfDB grant with matching funds from the Nordic Development Fund.

Camco Clean Energy and Energy Peace Partners will jointly manage the facility, which uses renewable energy certificates from small-scale projects. These certificates, sold voluntarily to multinational corporations, provide upfront capital to developers via long-term purchase agreements.

The 14 beneficiary countries 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, where chronic power shortages hinder economic growth in rural and off-grid areas, the non-dilutive funding promises to speed up mini-grid rollout and advance national electrification targets.

AfDB's Renewable Energy Funds Division Manager, João Duarte Cunha, hailed the model as key to tackling financing barriers in conflict zones. "Innovative mechanisms like P-REC are vital for energy access in high-risk markets," he said.

Analysts view the programme as a market-driven fix for Africa's electrification challenges, drawing private investment to fill funding gaps.