Extending Access to Clean Energy for Low-Income Households in Rural Bangladesh

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 POs also benefit from concessional finance through a World Bank line of credit, improving liquidity for renewable energy development.

This learning note is part of a series developed by the Global Partnership on Output-Based Aid (GPOBA) to analyze and showcase experiences where results-based finance (RBF) has been used to leverage private finance through a blended finance approach.

Photo: ©Abbie Traylor-Smith/DfID via Creative Commons