Results-Based Financing for Climate

Blog » Lighting Africa (LA) and GIZ EnDev programs in Ghana, Kenya, Rwanda-OBA

Lighting Africa (LA) and GIZ EnDev programs in Ghana, Kenya, Rwanda-OBA

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

Project Name:

Lighting Africa (LA) and GIZ EnDev programs in Ghana, Kenya, and Rwanda

 

Sector:

Energy access

 

RBF Instrument:

Output Based Aid (OBA, Performance payment

 

Greenhouse Gases (GHG) Avoided:

31,000 tons of CO2 (estimated)

 

Budget (USD):

$6.8 million in FY 09-10

 

Project Sponsor:

The World Bank, IFC

 

Description:

It is estimated that 31,000 tons of CO2 could be avoided due to this project. LED light bulbs are more energy efficient comparing to conventional light bulbs, and utilizing LED means more energy saving in the long run.  The effects of an expanding LED market also include financial and health benefits for households and small businesses.

 

Description of the RBF Scheme:

RBF finance qualitied suppliers to overcome the market barriers and be self-sufficient for importing high quality and efficient lighting products, e.g. one incentive scheme is managed by the private sector, and was paid out in grants to the first company that expands into a previously unserved area. Other RBF mechanism, e.g. subsidies were made against the successful installation and continuous use of LED lighting products within the households. The subsidies wind down at the end of the agreed period to cultivate self-sustaining local markets.

 

Publication Title:

Lighting Africa Progress Report