Publications

ABSTRACT VIEWS 169
FILE DOWNLOADS 81
SEAR Special Feature Report: Results-Based Financing: A Promising New Tool for Energy Access

As donors search for ways to promote energy access in the developing world, a new tool being piloted in the sector is results-based financing (RBF). It offers incentive payments on the basis of results achievedto businesses that deliver pre-specified outputs—such as the number of new electricity connections or advanced cookstoves that are sold.

By doing so, it tries to overcome market failures that constrain private sector delivery of modern energy services. So far, the global community has had limited experience with the RBF in the energy sector, but a number of programs and initiatives are under way to explore how to pilot and mainstream RBF into their activities. This paper focuses on how the RBF works in theory and in practice, with a special focus on a project to spur solar market development in Tanzania. 

Citation

Hüls, Marco; Raats, Marcel; Sebastian, Josh; Veen, Martijn; Ward, John. 2017. Results-based financing a promising new tool for energy access. State of Electricity Access Report. Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/793121494941318265/Results-based-financing-a-promising-new-tool-for-energy-access

Users also downloaded
Getting to Gender Equality in Electricity Infrastructure: Lessons from Electricity Generation, Transmission, and Distribution Projects sets out to examine the social and gender footprint of large-…
January 19, 2018
The manual is a practical guide for city officials and energy experts. TRACE 2.0 software and manual are available at https://esmap.org/TRACE. ESMAP first developed TRACE in 2008 to help city…
January 01, 2018
The Pilot Auction Facility (PAF) is an auction-based pay-for-performance mechanism that was originally developed by the World Bank to attract investment to projects that reduce methane emissions. The…
January 01, 2018
ESMAP informed $6.1 billion in World Bank lending and leveraged more than $560 million from other financiers. 23.3 million people in Africa are now meeting their basic electricity needs through…
December 31, 2017