The Financial Innovation for Access initiative supports the development and testing of financing instruments and implementation modes to drive energy access acceleration, inclusion, and impact across all electricity systems and solutions. It aims to do so in a way that provides additional financing instead of excluding or competing with private markets. While there is a growing number of structuring options and innovative instruments, it is not always clear how to determine the applicability of these instruments and utilize them in pursuit of increasing electricity access—a challenge this initiative hopes to address.
Particularly, this initiative aims to unlock local debt financing through risk mitigation instruments; designing and operationalizing impact-linked and results-based finance; digital financial solutions; electricity demand stimulation; and financing to purchase appliances.
The initiative will contribute to the body of knowledge on application of innovative financing instruments for electricity access, including lessons learned from the World Bank and IFC as well as external partners. In addition, the initiative will offer technical assistance to World Bank operations and piloting through grant funding to electrification country teams. This approach will aid in carrying out diagnostics, market intelligence, feasibility studies, fund structuring, and blueprint implementation.
The initiative will also support innovative financing pilot approaches at the country level to assess the viability of the different models for scaling up.