In Ghana, blended finance helped improve affordability for rural Ghanaian household investments in off-grid renewable energy technologies. Local banks extended credit blended with concessional finance from the World Bank to rural low-income households for acquisition, installation and maintenance of solar home systems (SHSs).
In 2015, the Global Partnership on Output-Based Aid (GPOBA) approved a US$4.95 million grant to increase access to grid-based electricity services for 22,000 low-income households and 5,000 micro and small enterprises (MSEs) in urban and peri-urban areas through use of targeted subsidies, with the aim of reaching low-income communities who would otherwise have gone unserved.
In 2011, GPOBA provided a grant to the local power utility, Liberia Electricity Corporation (LEC), to ensure broad-based and inclusive access to electricity and significantly improve living conditions among the poor in low-income households in Monrovia.
In Bangladesh, a blended finance approach has been used to extend access to off-grid electricity for rural low-income households. An output-based aid (OBA) grant in combination with microcredit from local partner organizations (POs)—mostly nongovernmental organizations (NGOs) with experience in microfinance—enhances affordability of clean energy technology for low-income consumers.
The project was implemented in five municipalities -- Dhankuta, Ghorahi, Lalitpur, Pokhara, and Tansen -- which met certain operating and maintenance requirements. The project aimed to build upon the municipalities’ existing systems and make them more sustainable, rather than developing new systems.
Given the significant financing gap to meet the needs of developing countries and achieve the United Nations’ Sustainable Development Goals*, governments, multilaterals and other development partners are increasingly looking to the private sector to help fill this gap.
GPOBA has collaborated with the World Bank/IDA to help meet Bangladesh’s increased demand for electricity. "To preserve the environment and power up isolated off-the-grid areas, the country has invested heavily in green energy through solar home systems, solar irrigation pumps, and solar mini-grids.
Despite increases in access to electricity over the last two decades, approximately 1.1 billion people—still lacked access to electricity in 2014. While urban areas tend to be more electrified due to their proximity to grid connections, most of the world’s population without access to electricity lives in rural areas.