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.

The report is focused on individuals and organizations who are considering whether an RBF approach would be a sensible way to deliver some specific goods or services to help meet a defined public policy goal. These individuals or organizations might then go on to implement an RBF scheme—in the language of the report, they would be the RBF scheme’s focus on the energy sector in developing countries principal.

Although there are a range of potential principals, those that are most likely to act as an RBF principal given ESMAP’s focus on the energy sector in developing countries might be either national or subnational governments or development agencies.

Download Case Studies


“Vivid Economics. 2013. Results-Based Financing in the Energy Sector: An Analytical Guide. Energy Sector Management assistance Program (ESMAP);Technical report 004/13. World Bank, Washington, DC. © World Bank.  License: CC BY 3.0 IGO.”

Users also downloaded
This report details the results of the MTF survey in Cambodia and provides an informed account of the status of both access to electricity and access to modern energy cooking solutions in the country…
March 18, 2018
Getting to Gender Equality in Electricity Infrastructure: Lessons from Electricity Generation, Transmission, and Distribution Projects sets out to examine the social and gender footprint of large-…
January 19, 2018
The manual is a practical guide for city officials and energy experts. TRACE 2.0 software and manual are available at ESMAP first developed TRACE in 2008 to help city…
January 01, 2018
The Pilot Auction Facility (PAF) is an auction-based pay-for-performance mechanism that was originally developed by the World Bank to attract investment to projects that reduce methane emissions. The…
January 01, 2018