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

Thu Feb 26 12:43:54 CST 2015

Hi Crispin,

This is interesting to apply to cookstoves. I like the idea. What if an
organization had a stove and had to pass through 4 phases to get the RBF.

1) Pass a minimum requirement of a lab test that met a certain standard.
2) Perform a in field test (independent of the organization) that met a
requirement (emissions).
3) Once they passed both #1 and #2 the RBF would be granted to a Phase 1
small amount and stove use monitoring (SUMS) would be conducted on a number
of stoves for 6 months.
4) If the stove use monitoring reached a XX% of adoption over the period of
time it would then qualify for Phase 2 funding through the RBF. (In order
to continue some type of metrics SUMs montoring could be run on a certain
percent of stoves to ensure adoption, or SUMs monitoring could continue
after 6 months of initial use or follow up surveys after 1 year of usage).

Thoughts?

Best,
Christina

On Thu, Feb 26, 2015 at 10:28 AM, Crispin Pemberton-Pigott <
crispinpigott at outlook.com> wrote:

> 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/ 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
>
>
>
> Renewable Energy NewsletterFebruary 2015
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-- 
Christina Espinosa
GenteGas S.A.
Co-Founder & CEO
Guatemala +502-3511-0565
christina at gentegas.com

www.gentegas.com
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