Results Based Financing in the Energy Access Sector
The Energising Development Program, with support from the Department for International Development (DFID), is piloting Results Based Financing as a tool to develop markets for low-carbon off-grid energy access products and services in developing countries. A first tranche of RBF incentives will go on the market in early 2014 (click here for further information). EnDev and DFID aim to further strengthen the learning on RBF through a second tranche of projects emphasising innovation in (RBF) approaches and technology sub-sectors.
With the aim of generating innovative ideas for expanding the RBF portfolio, and for exchanging views on RBF opportunities in the energy access sector in general, EnDev will host an on-line consultation/brainstorm on Energypedia.
| The basic principle of RBF is that private companies are paid an ex-post financial incentive on the basis of verified results in terms of sustainable energy access. Companies are free to develop their business model but take the full risk until results are verified. The incentive is aimed to cover a temporary and decreasing financial viability gap for the development of the sub sector.
The consultation will close on 17 November.
The online consultation will be structured according to the following guiding questions:
- Which technology/market combinations do you see as promising RBF cases? Or cases which might have been missed in the first tranche?
- Which innovative RBF incentive structures and approaches to foster and expand local markets for energy access would you suggest?
- Which countries or regions provide suitable framework conditions for RBF on energy access?
- Which existing subsectors, currently blocked or lacking progress, could benefit from an RBF support?
Note: The brainstorm/consultation will be an open exchange of ideas. No claims can be made from the use of the results of the consultation by any of the participants.