Renewable energy certificates (RECs) are instruments representing the environmental attributes of one megawatt-hour (MWh) of renewable electricity. In Africa they are issued mainly under the International Renewable Energy Certificate (I-REC) standard, which is managed by the International Tracking Standard (I-TRACK) Foundation.
Other labels such as Peace Renewable Energy Credits (P-RECs) and Distributed Renewable Energy Certificates (D-RECs) are impact-focused variants that channel revenues to renewable projects in fragile or off-grid settings.
The African REC market is relatively young but is beginning to attract attention from corporate buyers, developers and financial institutions, particularly as climate-related reporting (Scope 2 emissions and the European Carbon Border Adjustment Mechanism – CBAM) tightens.
In 2023 the I-REC system issued 283 million certificates (283 TWh), a 42% increase compared with 2022.
Redemptions grew 81% to 176 million certificates (176 TWh) in 2023.
Africa generated 902.9 TWh of electricity in 2023, of which 56.7 TWh (≈6%) came from renewable sources.
Only 1.7 TWh of energy attribute certificates (EACs) were issued on the continent, representing just 3% of its renewable generation.
South Africa, Nigeria and Morocco recorded annual growth above 80%, and Burkina Faso saw its first issuance in 2023.
| Country | Project | Estimated Annual I-REC Issuance |
|---|---|---|
| Nigeria | Shiroro hydro (600 MW), Dadin Kowa hydro (40 MW) | 3.5-3.7 million I-RECs |
| South Africa | Numerous wind and solar projects via zaRECs registry | Not disclosed (largest issuer in Africa) |
| Morocco | Khalladi wind farm (120 MW) | Not disclosed (potential: several million/year) |
| Kenya | First Kenyan I-REC project (solar) | 100,000 I-RECs |
| Uganda | Bugoye small hydro | 18,560 I-RECs (2020 sale) |
Standard I-REC prices in Africa are estimated to range from approximately USD 1 to USD 5 per MWh, depending on technology and country.
P-RECs trade at a significant premium, with average purchase prices of USD 40-50 per MWh, funding community infrastructure in fragile regions.
Large multinational corporations are driving REC demand to meet net-zero commitments.
Africa had 2.4 GW of installed solar capacity in 2024, with growth expected to exceed 42% in 2025.
Countries should establish national REC registries and clear regulations to increase trust and reduce administrative hurdles.
African companies should prepare for Scope 2 reporting and CBAM by procuring RECs, especially in export-oriented sectors.