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We are pleased to share some much-needed good news during this moment of profound global crisis and instability. While the ongoing conflict in the Middle East is being shaped by many forces, the enduring global dependence on fossil fuels - particularly oil - underscores the deep and inextricable link between energy, conflict, and security. The destabilizing consequences are being felt worldwide, with the most vulnerable communities - including those who lack access to affordable and sustainable sources of energy - bearing the brunt through sharp and sudden price shocks.
Against this backdrop, we believe that distributed renewable energy in fragile and conflict-affected settings offers a new way to support peace, security, and resilience. In that spirit, we are proud to share two significant milestones.
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AfDB SEFA and NDF approve funding for the P-REC Aggregation Facility (PAF)
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The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) and the Nordic Development Fund have each committed $5.65M to launch the $11.3M Peace Renewable Energy Certificate Aggregation Facility (PAF). PAF is a pilot financing facility that leverages the P-REC instrument developed by EPP to provide catalytic, early stage capital to distributed renewable energy project developers operating in countries affected by fragility and conflict. It is precisely in these settings where renewable energy investment is limited and access to affordable finance remains a challenge, even though projects in these settings have outsize social, economic, and environmental impacts that can address issues related to conflict and insecurity. EPP has partnered with climate and impact fund manager Camco to manage the facility with capital deployment set to begin shortly.
PAF represents the next chapter in EPP’s efforts to scale the P-REC market solution and derisk transformative renewable energy projects in settings affected by conflict and insecurity. Why does this matter? Because the majority of the more than 600 million people currently without access to electricity live in fragile and conflict-affected countries. If we are going to achieve universal energy access, more climate finance must flow to these settings. Bringing a peace and security lens to energy access work expands the scope for impact and provides new entry points for governments and funders.
PAF will support approximately 71MW of new distributed renewable energy capacity in up to 14 sub-Saharan African countries, unlocking $137 million in additional funding for new projects and connecting more than 850,000 people to first-time electricity.
PAF aligns with existing initiatives on the African continent including Mission 300, the African Development Bank and The World Bank Group's initiative to connect 300 million Africans to electricity by 2030.
We are grateful to our partners AfDB SEFA, NDF and Camco as well as the many organizations who have supported EPP throughout PAF development, including International Tracking Standard Foundation, Global Innovation Lab for Climate Finance, International Climate Finance Accelerator Luxembourg, Catalytic Climate Finance Facility, and to our many other collaborators and supporters.
Read the full African Development Bank press release here.
To learn more about the P-REC Aggregation Facility, please click here.
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Workshop: Charting a Future for Peace and Renewable Energy
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 We recently co-convened a workshop in Nairobi titled “Powering Peace: Charting a Future for Peace and Renewable Energy.” The event brought together a diverse group of stakeholders from across renewable energy, finance, government, philanthropy, academia, and peacebuilding to share and collaborate on the potential for renewable energy to advance peace in fragile settings in Africa.
The workshop explored real-world examples of how renewable energy projects in conflict-affected regions can help address drivers of conflict and insecurity - from addressing grievances and reducing inter-community tensions, to providing livelihood opportunities that deter armed group recruitment, and strengthening the social contract between governments and their populations. The link between renewable energy and peace offered new framing for many in the room, and powerful examples from South Sudan, Democratic Republic of Congo, and Nigeria expanded how workshop participants thought about renewable energy outside of their existing sector-specific silos.
The convening reflects the evolution of our Powering Peace initiative to build a wider stakeholder community working together to advance a renewable energy and peace agenda, including key partners in Africa, with the ultimate aim of mobilizing collective action and unlocking financial resources for renewable energy interventions that can help transform communities affected by conflict.
We are grateful to our co-convening partners the Stanley Center for Peace and Security, the Stimson Center, and The John Sloan Dickey Center for International Understanding at Dartmouth.
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Here are a few of the articles and reports we’ve been reading on issues of climate change, conflict, and renewable energy in fragile and humanitarian settings:
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IRENA released a report that outlines 40 innovations - including policy, regulation, market design, system operation and planning, and business models - that policymakers can leverage to achieve resilient power systems that expand energy access and drive inclusive sustainable development.
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An independent evaluation has found that FMO’s Renewable Energy investments in Fragile and Conflict‑affected States have generally delivered positive results, despite the elevated risks associated with operating in such contexts. The evaluation shows that FMO plays a highly additional role in these markets.
- The Lancet recently published a series on energy and health in low- and middle-income countries. One paper, by Vinci et al. discusses several measures and policy options for accelerating health-care facility electrification, including the importance of climate finance, and a reference to P-RECs as a market-based mechanism.
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Wishing you all well,
Energy Peace Partners
P.S. You can find regular updates from EPP on LinkedIn. |
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