Results-Based Financing - Revision history

Lisafeldmann at 09:51, 14 September 2023

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Lisafeldmann at 08:30, 14 September 2023

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Lisafeldmann at 14:11, 13 June 2022

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Lisafeldmann at 14:09, 13 June 2022

2022-06-13T14:09:31Z

Lisafeldmann at 13:29, 13 June 2022

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Lisafeldmann at 13:28, 13 June 2022

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Lisafeldmann at 13:28, 13 June 2022

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← Older revision		Revision as of 09:51, 14 September 2023
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	Read more [[Promoting Access to Finance\|here]].		Read more [[Promoting Access to Finance\|here]].
		+
		+	=== Results-Based Financing Mechanism for Productive Equipment Sales in Benin ===
		+	The Green People´s Energy Programme (Grüne Bürgerenergie, GBE) in Benin introduced a results-based financing (RBF) mechanism for solar productive use (PU) technologies. The RBF provides subsidies to solar companies selling and installing solar PU appliances. The incentives are paid out after the solar PU appliance has been installed, audited, and verified by an independent expert.
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		+	Read more [[Results-Based Financing Mechanism for Productive Equipment Sales in Benin\|here]].
		+
	=== EnDev - Tanzania ===		=== EnDev - Tanzania ===

← Older revision		Revision as of 08:30, 14 September 2023
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	* Energy Sector Management Assistance Program (ESMAP) (2022). [[:File:Designing Public Funding Mechanisms in the Off-Grid Solar Sector.pdf\|Designing Public Funding Mechanisms in the Off-Grid Solar Sector]]. Washington, DC: World Bank.		* Energy Sector Management Assistance Program (ESMAP) (2022). [[:File:Designing Public Funding Mechanisms in the Off-Grid Solar Sector.pdf\|Designing Public Funding Mechanisms in the Off-Grid Solar Sector]]. Washington, DC: World Bank.

		+	=== Promoting Access to Finance in Benin ===
		+	The Green People´s Energy Programme (Grüne Bürgerenergie, GBE) in Benin launched a results-based financing (RBF) mechanism to encourage microfinance institutions (MFI) to grant microloans to potential solar end-users. The RBF scheme targets mainly the promotion of solar refrigerators and freezers and solar water pumps.

		+	Read more [[Promoting Access to Finance\|here]].
	=== EnDev - Tanzania ===		=== EnDev - Tanzania ===

@@ Line 155: / Line 155: @@
 *Find more documents on RBF at the collaborative platform for RBF/OBA: [http://www.gpoba.org/gpoba/ Global Partnership for Results-based Approaches  (GPRBA)], which provides innovative financing solutions that link funding to achieved results in the sectors of energy, water and sanitation, health and education.
 *EnDev (2022): [https://endev.info/how-results-based-financing-made-the-mini-grid-sector-in-rural-rwanda-thrive/ How Results-based Financing made the Mini-grid sector in rural Rwanda thrive]
-*articles on energypedia:
+*Articles on energypedia:
 **[[First Lessons Learnt From Results-based Financing in EnDev]]
 **[[Dissemination Of Solar Lantern (PicoPV) In Bangladesh Through EnDev’s Result Based Financing (RBF) Mechanism For Improving Access To Clean Energy: Achievements And Challenges]]
 **[[:Category:Results Based Financing (RBF)|All articles on RBF on energypedia]]
 *[[:Category:Results Based Financing (RBF)|All articles on RBF on energypedia]]
-*[[Portal:Financing and Funding]]
+* [[Portal:Financing and Funding]]

@@ Line 153: / Line 153: @@
 *GIZ (2021): [https://endev.info/transforming-energy-access-markets-with-rbf-lessons-from-7-years-of-implementation-under-endevs-rbf-facility-financed-by-uk-aid/ Transforming energy access markets with Results-based Financing. Lessons from 7 years of implementation under EnDev’s RBF Facility financed by UK Aid]
 *ESMAP (2022): [[:File:Designing Public Funding Mechanisms in the Off-Grid Solar Sector.pdf|Designing Public Funding Mechanisms in the Off-Grid Solar Sector]]
 *articles on energypedia:
 **[[First Lessons Learnt From Results-based Financing in EnDev]]
@@ Line 159: / Line 161: @@
 *[[:Category:Results Based Financing (RBF)|All articles on RBF on energypedia]]
 *[[Portal:Financing and Funding]]

@@ Line 151: / Line 151: @@
 == Further Information ==
-*[[First Lessons Learnt From Results-based Financing in EnDev]]
+*GIZ (2021): [https://endev.info/transforming-energy-access-markets-with-rbf-lessons-from-7-years-of-implementation-under-endevs-rbf-facility-financed-by-uk-aid/ Transforming energy access markets with Results-based Financing. Lessons from 7 years of implementation under EnDev’s RBF Facility financed by UK Aid]
-*[[Dissemination Of Solar Lantern (PicoPV) In Bangladesh Through EnDev’s Result Based Financing (RBF) Mechanism For Improving Access To Clean Energy: Achievements And Challenges]]
+*ESMAP (2022): [[:File:Designing Public Funding Mechanisms in the Off-Grid Solar Sector.pdf|Designing Public Funding Mechanisms in the Off-Grid Solar Sector]]
+*
 *[[:Category:Results Based Financing (RBF)|All articles on RBF on energypedia]]

@@ Line 113: / Line 113: @@
 ''Energising Development (EnDev) is a program that supports development through energy access. In 2013, with the support of UK aid and the SNV Netherlands Development Organisation (SNV), it began a five-year RBF project in the Lake and Central Zone of Tanzania.''
-''The RBF was structured to provide retailers and distributors with incentives for verified proof of sales of solar products in the target regions. There were two forms of the incentive: a product bonus installment to retailers and a capital bonus installment to suppliers, linked to retail sales volumes. The RBF was structured so that neither party could earn the incentive without the verified performance of the other party; the incentive was therefore dependent on cooperation between suppliers and retailers. Incentives are paid on Lighting Global–verified solar products and are linked to product performance. They range from €1 ($1.12) to €40 ($45); they are capped to limit oversubsidization. By the end of 2017, more than 60,000 Lighting Global–verified solar products had been sold under the RBF, and more than €1.3 million ($1.46 million) of the RBF fund had been disbursed as incentives<ref name="The World Bank, 2020. Funding the Sun : New Paradigms for Financing Off-Grid Solar Companies- https://energypedia.info/wiki/Publication_-_Funding_the_Sun_:_New_Paradigms_for_Financing_Off-Grid_Solar_Companies">ESMAP (2020): Funding the Sun. New Paradigms for Financing Off-Grid Solar Companies. World Bank. https://www.esmap.org/Funding_the_Sun
+''The RBF was structured to provide retailers and distributors with incentives for verified proof of sales of solar products in the target regions. There were two forms of the incentive: a product bonus installment to retailers and a capital bonus installment to suppliers, linked to retail sales volumes. The RBF was structured so that neither party could earn the incentive without the verified performance of the other party; the incentive was therefore dependent on cooperation between suppliers and retailers. Incentives are paid on Lighting Global–verified solar products and are linked to product performance. They range from €1 ($1.12) to €40 ($45); they are capped to limit oversubsidization. By the end of 2017, more than 60,000 Lighting Global–verified solar products had been sold under the RBF, and more than €1.3 million ($1.46 million) of the RBF fund had been disbursed as incentives.'' <ref name=":4">ESMAP (2020): Funding the Sun. New Paradigms for Financing Off-Grid Solar Companies. World Bank. https://www.esmap.org/Funding_the_Sun</ref>
 |}
@@ Line 127: / Line 126: @@
 ''KOSAP is a World Bank–funded project, implemented by the government of Kenya, that aims to expand electricity access through off-grid solar products and solar mini-grids in Kenya’s underserved counties—the poorer and more remote regions in north and northeast Kenya. It includes an off-grid solar component of $42 million, made up of a $12 million RBF facility and a $30 million debt facility. SNV and SunFunder were chosen as implementation partners by the government of Kenya, following a competitive selection process. The facilities were launched in June 2019.''
-''This facility competitively awards financial incentives to companies to compensate them for the up-front, ongoing, and opportunity costs associated with expanding into underserved counties. Counties are divided into service territories, and tenders are held for each service territory. Companies bid based on a financing amount per household that they estimate would be required to electrify the household and a sales target they estimate they can reach. The companies with the lowest financing requirements win, assuming they meet eligibility criteria, have proven track records, and can reasonably be expected to stay in the underserved county once the subsidy period comes to an end. For each tender, there is a percent cap for the maximum amount any individual company can receive, in order to ensure that there are multiple, competing companies in each service territory and customers have a meaningful choice of products and suppliers<ref name="The World Bank, 2020. Funding the Sun : New Paradigms for Financing Off-Grid Solar Companies- https://energypedia.info/wiki/Publication_-_Funding_the_Sun_:_New_Paradigms_for_Financing_Off-Grid_Solar_Companies">The World Bank, 2020. Funding the Sun : New Paradigms for Financing Off-Grid Solar Companies- https://energypedia.info/wiki/Publication_-_Funding_the_Sun_:_New_Paradigms_for_Financing_Off-Grid_Solar_Companies</ref>''.
+''This facility competitively awards financial incentives to companies to compensate them for the up-front, ongoing, and opportunity costs associated with expanding into underserved counties. Counties are divided into service territories, and tenders are held for each service territory. Companies bid based on a financing amount per household that they estimate would be required to electrify the household and a sales target they estimate they can reach. The companies with the lowest financing requirements win, assuming they meet eligibility criteria, have proven track records, and can reasonably be expected to stay in the underserved county once the subsidy period comes to an end. For each tender, there is a percent cap for the maximum amount any individual company can receive, in order to ensure that there are multiple, competing companies in each service territory and customers have a meaningful choice of products and suppliers.''<ref name=":4" />
 |}
@@ Line 144: / Line 143: @@
 ''Payments were made to domestic and nondomestic installers on the basis of each kilowatt hour (kWh) their product produced. The initial subsidy was £0.09 ($0.12) per kWh for heat and £0.10 ($0.13) per kWh for hot water. The annual subsidy for installers was to last 20 years for commercial installations and 7 years for home installations. On this basis, installers could expect to recover the costs of installation within five to eight years from the incentive. Payments received were tax free.''
-''In 2017 the scheme came under intense scrutiny for overspending, and a public inquiry was launched. During the inquiry, allegations were made that some users installed heating systems to profit from the scheme rather than to meet genuine heating needs. In 2017 the subsidy was reduced, highlighting the risk to installers where payments are made over a long period, during which there is potential for policy change<ref name="The World Bank, 2020. Funding the Sun : New Paradigms for Financing Off-Grid Solar Companies- https://energypedia.info/wiki/Publication_-_Funding_the_Sun_:_New_Paradigms_for_Financing_Off-Grid_Solar_Companies">The World Bank, 2020. Funding the Sun : New Paradigms for Financing Off-Grid Solar Companies- https://energypedia.info/wiki/Publication_-_Funding_the_Sun_:_New_Paradigms_for_Financing_Off-Grid_Solar_Companies</ref>''.
+''In 2017 the scheme came under intense scrutiny for overspending, and a public inquiry was launched. During the inquiry, allegations were made that some users installed heating systems to profit from the scheme rather than to meet genuine heating needs. In 2017 the subsidy was reduced, highlighting the risk to installers where payments are made over a long period, during which there is potential for policy change.''<ref name=":4" />
 |}

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 * [http://www.gpoba.org/gpoba/ '''Global Partnership for Results-based Approaches  (GPRBA)'''], which provides innovative financing solutions that link funding to achieved results in the sectors of energy, water and sanitation, health and education.
 * [http://www.eepmekong.org/ '''Energy and Environment Partnership with the Mekong Region (EEP Mekong)'''], a Finland-funded and NIRAS-managed programme, which supports projects in the Mekong region on a results-based financing basis to scale-up or pilot sustainable energy activities.
-* [https://www.esmap.org/ESMAP_Clean_Cooking_Fund_Program_Profile '''Clean Cooking Fund'''], an initiative of World Bank's Energy Sector Management Assistance Program (ESMAP), aims to leverage at least US$2 billion in investments to help 200 million people gain access to clean cooking while supporting development of the clean cooking market. Results-based financing (RBF) is used to pay for the verified results of interventions to incentivize supply-chain players, spur market development, and pay for the public co-benefits (health, gender equality, and climate) of interventions. It's focus is on Burundi, Ghana, Horn of Africa, Rwanda, Uganda, Mozambique, Myanmar, and Niger.
+* [https://www.esmap.org/ESMAP_Clean_Cooking_Fund_Program_Profile '''Clean Cooking Fund'''], an initiative of World Bank's Energy Sector Management Assistance Program (ESMAP) and launched in 2019, aims to leverage at least US$2 billion in investments to help 200 million people gain access to clean cooking while supporting development of the clean cooking market. Results-based financing (RBF) is used to pay for the verified results of interventions to incentivize supply-chain players, spur market development, and pay for the public co-benefits (health, gender equality, and climate) of interventions. It's focus is on Burundi, Ghana, Horn of Africa, Rwanda, Uganda, Mozambique, Myanmar, and Niger.
 * [https://www.nefco.int/fund-mobilisation/funds-managed-by-nefco/modern-cooking-facility-for-africa/ '''Modern Cooking Facility for Africa (MCFA)'''], which has been launched in 2021 and aims to scale-up access to higher tier clean cooking solutions by using RBF mechanisms. Initially the MCFA will operate in following countries; the Democratic Republic of the Congo, Kenya, Mozambique, Tanzania, Zambia and Zimbabwe.
 * [https://beyondthegrid.africa/ '''Beyond the Grid Fund for Africa (BGFA)'''], which aims to build markets for off-grid energy to bring access to clean, affordable off-grid energy to reach at least 6 million people by 2025. Countries of Intervention are: Burkina Faso, Liberia, Mozambique, Uganda and Zambia. Read more about the program [[Energy Access Programmes in Mozambique#BGFA .E2.80.93 Beyond the Grid Fund for Africa|here]].