“Results-based approaches” (RBAs) to development financing have mushroomed in recent years, partly due to tighter aid budgets, but more in response to a consensus that has emerged at development effectiveness forums in Rome, Paris, Accra and Busan.
RBAs have been adopted in numerous health and water projects, where expansion of access to a service—typically an immunization, an attended birth, a water connection—is the key indicator.
But RBAs are more scarce in the energy sector.
Why? Is the energy sector too complex? Are energy business models too diverse? Is there a results-based model that could work in the energy sector?