Results-Based Financing

Achieving universal energy access by 2030 requires a funding mechanism that allows for scale, speed and efficiency. This programme aims to catalyse a shift to results-based financing models to put the world on track to achieve universal electrification and clean cooking access.

While substantial financing resources are currently dedicated to energy access, most financing continues to rely on traditional procurement mechanisms that entail the up-front financing of inputs.

Results-based financing offers an alternative by enabling payment of specified sums for projects with clear verification of a functional energy connection.

By shifting delivery risk to the private sector, results-based financing allows governments and funding partners to aggregate financing and scale-up support across multiple countries.

Eliminating the need for private companies to fill in an application every time they request financing takes the burden away from these project developers, helping to speed and scale up execution.

Our Results-Based Financing programme involves advocating for the widespread adoption of this financing approach for electrification and clean cooking access projects. We are also turning our words into action by collaborating with partners in launching the Universal Energy Facility—a multi-donor results-based financing facility that will catalyze two million energy connections by 2023.

Sustainable Energy for All (SEforALL) is the Programme Manager of the Universal Energy Facility.

Expected outcomes

  • The Universal Energy Facility aspires to be a USD 500 million facility by 2023 (USD 100 million by 2021) and to deliver approximately 2.3 million energy connections and 300,000 clean cooking solutions by 2023.
  • We will provide advocacy and advisory services to promote the transition to results-based approaches by coordinating and convening stakeholders who are funding or working on results-based financing schemes, so they can share lessons learned and avoid overlaps in their work.