Results-based approaches (RBA) arebecoming increasingly important, in both developed anddeveloping countries. Within the energy sector, there arealready several large-scale results-based schemes that makepayments to implementers and service providers. However,support to national or regional governments based on theachievement of results in the energy sector remains unusual.This report seeks to explore the opportunity of utilizingRBA within the energy sector. It complements earlier work byvivid economics and the energy sector management assistanceprogram (ESMAP) on results-based financing (RBF). The reportconstitutes one output in a broader research agenda on RBAsin the energy sector being undertaken by ESMAP of the WorldBank. This report is intended to provide a high-level guideto results-based aid in the energy sector. It should beuseful for a wide range of interested parties, includingrecipients, donor agencies, development practitioners, andacademics. By providing a clear and justified analyticalframework, the report ensures that the analysis is rigorousand open to critique. Chapter one gives introduction.Chapter two considers the theory of change underlyingresults-based aid, and uses this to derive fourpre-conditions for RBA to be effective. Chapter threeprovides a discussion of the energy results chain, which canbe used to frame the selection of results level andindicator. Chapter four outlines the factors to considerwhen selecting a results level and indicator for RBA.Chapter five considers when it is appropriate to targetgovernments as the recipient in an aid program, rather thanimplementers or service providers. Chapter six discusses theremaining key design issues within an RBA agreement. A finalsection, chapter seven, considers the intersection betweenRBA and ongoing work on tracking and measuring energy accessunder the sustainable energy for all initiative.
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