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Clean Energy OBA/RBF Schemes-Nepal, Uganda, India

Created Feb 15 2017, 12:00 AM by Julian Sosa Valles
  • Clean energy-project examples

Nepal: Biogas Support Program


Project Objective:


The project objective of the Nepal Biogas Support Program was to increase the number of households sustainably using biogas, providing support for 37,300 biogas plants in rural Nepal.


OBA/RBF features:


The project was supported by GPOBA using OBA subsidies. Biogas companies signed installation contracts with households. The installation includes a guarantee on pipes, fitting and appliances for one year and a three year guarantee on performance of the concrete structure of the plant. The OBA subsidy payment was made on receipt of a plant completion report.


Climate Features:


This GPOBA project delivered biogas plants to about 261,100 rural beneficiaries. Nearly 2 tons of firewood savings per year were reported.

In the preparations of the project the demand for firewood was identified as a contributor to deforestation and indoor air pollution, with average smoke levels in kitchens using

biomass fuels about three times higher than levels in those using cleaner fuels (kerosene, liquefied petroleum gas, and biogas). In addition to the energy savings, the use of bio-slurry as fertilizer improved the soil fertility, which led to better carbon retain capacity of both the soil and the plants.



The World Bank, 2012. Implementation completion and results report on a Nepal biogas support program IV (BSP). Report No: ICR73232-NP

GPOBA, Biogas Support Program in Nepal: Lessons Leaned


Uganda:  Global Energy Transfer Feed-in Tariffs Program (GET FiT)


Project Objective:


The program is designed to address investment barriers in small RE projects by providing project owners during early debt repayment periods additional cash flow. .


OBA/RBF features:


There are two “layers” of subsidy components for feeding electricity generated by RE technologies into the national grid. One is the usual FiT from Electricity Regulatory Authority (ERA) in Uganda and the other is the top-up premium from GET FiT Uganda. While the usual FiT is paid out against actual delivery of electricity into the grids, GET FiT uses a different pay-out mechanism: 50% GET FiT premium is paid out on Commercial Operations Date (COD) and another 50% is disbursed over 5 years of operation


Climate Features:


Since Feed-in Tariff (FiT) is not high enough to cover electricity generation cost in Uganda, GET FiT Progarmme offers a top-up payment on top of the FiT in Uganda, e.g. USDc 1.4/kWh for hydropower and USDc 1.0/kWh for biomass.  By providing additional cash, project developers could potentially benefit from improved financing situations / conditions; By granting energy access through the use of RE, it targets both energy access challenges and CO2 reduction challenges. The unit of DLIs is in KWh


Deutsche Bank: GET FiT – Effectively coping with the challenges of climate change and the fight against poverty


India: Deployment of residential solar hot water (SHW) systems

Project objective:


The project objective is to increase the deployment of SHW systems in urban residential buildings in India.


OBA/ RBF features:


The proposed RBF incentives in the form of subsidies were paid out upon verification of installation and the installed SHW system being in operation. The RBF subsidies were introduced to encourage vendors to reach out to consumers in rural areas, where the demand is suppressed.


The subsidy mechanisms varies and is calculated either as percentage of an agreed benchmark cost or in fixed prices terms per m2 of SHW system collector area.

The verification was designed ensure the operational quality of the SHW according to the agreed standards after the installation.


Climate mitigation features:


The energy savings from the implementation of the project is substantial since water heating comprises a significant share of the total energy consumption of a residential building in India. In two of the cities the projects have been implemented, New Delhi and Bangalore, the energy units saved per year is estimated at 750 kWh and 1500 Kwh, respectively. The GHG emissions reduced are estimated to be  0.73 tons  and 1.5 tons of CO2e, respectively.



Results-based Financing Case studies. 2012. ESMAP, World Bank