Cocinas mejoradas para el desarrollo regional - Results Based Finance for Research & Development at a Regional Level
This project aims to boost the market value chain of renewable energy technologies through innovation, production and marketing of improved portable stoves.
Dates: January 2015 – December 2016
Funder: GIZ – Results Based Financing programme
The aim of the project is to stimulate the cookstoves market for rural populations in Peru who use wood for cooking, and who currently have access to only poor quality stoves. Where improved stoves are used, these are mostly built into the kitchen. Only two of 35 certified stoves in Peru are portable. There are some problems with this in that it is difficult to ensure a uniform quality of construction so stove performance may not be that good, it can be difficult to repair them, it can be difficult to reach people living in remote areas. This means it is harder for these built-in stoves to be delivered at scale, and to reach remote populations. This project therefore aims to stimulate the market for portable stoves.
The idea is to introduce three types of incentives into the portable cookstoves market to try to increase the quality and variety of stoves available, to speed up the market uptake of improved stoves, by encouraging the growth of small businesses selling these stoves to rural customers.
The three incentives are:
1. A cash prize in a competition to find the seven best-performing stoves. As part of the competition, all stoves will be tested at the national laboratory in four categories: efficiency, weight, safety and complementary uses.
2. Non-monetary vouchers to support entrepreneurs with the winning stoves to develop their businesses
3. Ex-post incentives for every stove sold.
Results-based financing is a relatively new initiative in energy access, and as part of this project, we will be learning about the relevance of this kind of financing for supporting energy access work.