Energy Sector Analysis Study

The objective of this study is to inform the preparation to the access to energy agenda by reviewing lessons from Output-Based Aid projects in the water sector. The study will provide recommendations for mainstreaming OBA as well as reflect on the impact that the projects have made collectively in the sector. Relying on GPOBA’s best practices and lessons, the study will highlight the areas of focus during project identification, structuring and implementation in different sub-sectors, as well as recommend lesson-gathering practices throughout the project cycle.

The activities are completed and the analytical deliverables presented at the Program Council Meeting of GPOBA and approved in June 2016. Similarly   to   the   water   study   above,   this   study demonstrated how the OBA instrument has been in demand   in   country  contexts   with  weak  service delivery.  The  report  notes  within  the  OBA  energy portfolio   a   subset   of   successful   projects   that support  mini-grids  and  solar  home  systems.  The availability of renewable energy companies can be a sign of sophistication of the sector that, with the incentive to deliver that OBA provides, is well suited for  electrification  agenda  of  low-income  families. On  the  other  hand,  the  instances  of  working  with grid-based utilities was more challenging and OBA projects were not disbursing as planned as a result of verification of service. GPOBA portfolio suggests that reliance on national power utilities, seemingly natural partners for electrification of the poor, can be a risky undertaking, and that the OBA instrument is appropriate because it does not disburse if access is not delivered.