Publication - Result-Based Financing for Energy Access

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Title

Result-Based Financing for Energy Acess

Publisher

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH - Energising Development (EnDev)

Author

Elina Weber, Véronique Hirner, Philipp Geres

Published in

February 2018

Abstract

Since 2013, the Energising Development (EnDev) programme has been implementing 17 results-based financing (RBF) projects in 14 countries in Africa, Asia and Latin America. These DFID funded RBF projects have resulted in valuable lessons learned in using RBF to drive the development of energy access markets. With this publication, we aim to share with you a number of practical experiences in the design and implementation of RBF projects.

RBF is a powerful tool to encourage companies to expand their business to markets outside their comfort zone such as remote regions or even entirely new countries. In Tanzania, for example, EnDev has been able to bring suppliers of small solar systems to start business in the Lake Zone by providing them a financial incentive for each solar system sold to a rural consumer. These incentives are only disbursed to the companies after the sales have been thoroughly verified. While in 2013 hardly any solar company was active in the region, today 15 international and local solar companies are working there through a network of around 600 retailers and sales agents. More than 325,000 people in the region gained new access to energy through this RBF project so far.

This is only one example from our broad RBF portfolio. You will find many more cases in the publication. If you have any questions about these RBF projects, please feel free to contact the head of our RBF Facility, Elina Weber (elina.weber@giz.de).

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