Result-based Financing in Rural Energy Supply

IP Wave

Countries: Peru Bolivia Mozambique Bangladesh Tanzania Uganda

Client: GIZ

Counterpart Organization: DFID

Project Duration: 07/2012 - 12/2012

1.4 billion people worldwide still lack access to electricity. The GIZ programme “Energising Development” (EnDev) promotes the supply of modern energy services for households and small businesses in Africa, Asia and Latin America. Within the pro-gramme DFID seeks to test and learn from results-based financing (RBF) projects as an instrument for climate finance. The general RBF idea is to pay an incentive in form of a top-up or premium after delivery of an agreed product or service. This challenges private sector entrepreneurs in developing countries to cross existing financial barriers for low-carbon energy-access market development.

IP Consult, in close cooperation with GIZ, developed innovative concepts for RBF pilot projects which contribute to the development of a self-sustaining market for energy products. The concepts were designed for Peru, Bolivia, Bangladesh, Mozambique, Tanzania and Uganda. For Bangladesh and Peru comprehensive project appraisals were developed.

Main Services Provides:

  • Desk study on results-based financing approaches and markets for modern en-ergy services; Development of concept notes for sustainable energy projects
  • Advising international and local GIZ staff on results-based financing approaches for different technologies for rural energy supply (Peru: PicoPV and Solar Water Heaters; Bolivia: PicoPV; Mozambique: pay-as-you-go solar power and Mini- and Micro-Hydropower plants; Uganda: Improved Cookstoves; Tanzania: Pay-as-you-go solar lighting; Bangladesh: Small Solar Home Systems and PicoPV);
  • Project appraisal missions to Peru and Bangladesh including
  1. Stakeholder consultations 
  2. Development of a detailed project appraisal (incl. outcome indicators and logframe) and implementation strategy 
  3. Report writing