Results-Based Financing In The Energy Sector - An Analytical Guide
This report identifies the circumstances when results-based financing (RBF) approaches might be an appropriate energy sector intervention in developing countries, especially to promote energy access and energy efficiency. It was commissioned by the Energy Sector Management Assistance Program (ESMAP) as part of a broader initiative looking at the potential for greater use of results-based approaches in the energy sector in developing countries. The fundamental idea of RBF approaches is that payments that would otherwise be made automatically are made contingent on delivery of a preagreed (set of) result(s), with achievement of the result(s) being subject to independent verification.
This report aims to help fill the gap. Its novelty rests on a conceptual examination of RBF mechanisms to derive insights on when and under which circumstances they are desirable, and the application of these insights to the energy access and energy efficiency contexts.