[Stoves] How Results Based Financing is spurring solar market development in Tanzania

Thu Feb 26 10:28:07 CST 2015

Dear Friends

The financing mechanism called “Results Based Financing” (RBF) which is being tested as part of the Indonesian Pilot (CSI-Indonesia) is also being tried by SNV in Tanzania for other things.

It would be useful for the stove community to understand how this works, and in particular how it affects the rating of stove performance. There are links given on the Collaboration for Development (C4D) www.collaboration.worldbank.org/ <http://www.collaboration.worldbank.org/>  such as https://collaboration.worldbank.org/docs/DOC-7577   

For RBF to work, stove test results have to be predictive of performance in use in that community. This puts pressure on the labs that are rating stoves to, in effect, make a promise that a particular stove used in a particular community will reliable give a certain performance, on average. That’s the best we can do.  

In the Indonesian Pilot, this has been done by conducting a well-controlled, amalgam cooking performance test in the lab called a ‘technical test’ (TT).  RBF is likely to become more popular because it means the sponsor only pays for results achieved.  In the past sponsors paid for claims. Big difference…  The people behind the TT are those who study the community. That includes Cecil Cook, Veronica Mendizabal and Helene Carlsson and the friendly folks at Yayasan Dian Desa. Without such input, it is very hard to know what performance a stove will deliver. In fact it is impossible to know.

Regards

Crispin 

From: SNV Netherlands Development Organisation [mailto:coms=snvworld.org at mail157.atl61.mcsv.net] On Behalf Of SNV Netherlands Development Organisation
Sent: Thursday, February 26, 2015 10:09
To: =?utf-8?Q??=
Subject: How Results Based Financing is spurring solar market development in Tanzania

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