Five East African Community (EAC) member states have been selected as beneficiaries of a $5.65 million (Ksh 729m) funding by the African Development Bank (AfDB) to support the development of renewable energy and improve electricity access.
The countries which include Uganda, Burundi, Somalia, South Sudan and the Democratic Republic of Congo (DRC) are among 14 countries who will secure reimbursable grant from the AfDB’s Sustainable Energy Fund for Africa (SEFA) to pilot the Peace Renewable Energy Certificate (P-REC) Aggregation Facility which will deploy renewable energy certificates as a direct funding instrument for a portfolio of mini-grids across Africa’s most fragile and energy-poor countries.
According to the lender, the Nordic Development Fund (NDF) which is a co-financier will also commit $5.65 million into the fund bringing total funding to $11.3 million.
“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. I am proud that SEFA is backing this innovative, first-of-a-kind facility testing a new climate finance product capable of unlocking new sources of commercial funding for private sector led mini-grids. This is the kind of market-making needed to advance Mission 300 objectives.” João Duarte Cunha, Manager, Renewable Energy Funds Division and Sustainable Energy Fund for Africa, AfDB.
Under the programme, AfDB targets to bring electricity access to 856,000 people in the 14 selected countries through development of renewable energy mini grids.
AfDB says the certificates come exclusively from small-scale mini-grid projects in conflict-affected and energy-poor communities, and are voluntarily purchased by multinationals looking to put their corporate sustainability spending where it drives the greatest social and environmental impact.
“Countries in Sub-Saharan Africa facing fragile and conflict-affected situations urgently need support and access to clean, reliable energy solutions. At NDF, we are proud to contribute to the Innovative Peace Renewable Energy Certificate (P-REC) Aggregation Facility, which helps bring small-scale, off-grid renewable energy to communities with no, limited or disrupted energy access,” added Satu Santala, Managing Director, NDF.
The funding will support 240,000 new connections and 71 megawatts of new renewable energy capacity.
