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.
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.
In Nairobi, Kenya, roughly 2 million people live in informal settlements, many below the poverty line. A key factor that has kept this population in poverty is a lack of electricity.