FMO commissioned an evidence map on the effectiveness of Access to Energy Funds's planned interventions based on the new strategy of the fund.
The evidence map helps to develop a more targeted approach for conducting evaluations for the Access to Energy Fund, and through this process, FMO aims to contribute new insights to private sector development.
The Access to Energy Fund (AEF) was set up to create access to renewable energy (RE) in developing countries by providing risk-bearing funding. In December 2018, FMO received a 10-year renewal of its mandate to manage AEF with a refined investment strategy.
The proposed strategy broadened the investment themes beyond renewable energy for households (in on- and off-grid) to foster financing in other topics such as power production for SMEs, transmission and distribution projects, scalable tech-related energy innovations, and clean cooking solutions, including efficient cookstoves and biodigesters. A cross-cutting topic to be considered is the poverty alleviation and gender impact of AEF investments.
In this context, FMO commissioned an evidence map on the effectiveness of AEF’s planned interventions in achieving the impact goals of the fund. The purpose of the map is to determine the areas in AEF’s Theory of Change (ToC) where there is enough evidence to understand the direction and magnitude of the foreseen impact and identify the gaps where evaluations can contribute to the body of knowledge because the expected impact is less clear based on the existing research[1].
The report covers six topics: mini-grids, solar home systems, transmission and distribution, clean cookstoves, climate and economic growth.
The findings of the study were insightful and varied. For instance, the evidence map highlights a gap regarding the impact of Solar Home Systems for productive use or SMEs. It notes that the evidence on the impact of SHS on health is uncertain, despite being thoroughly researched. The report also shows that for mini-grids, conditions like the presence of an anchor client and/or the availability of grants can improve financial viability.
[1] The strategy and ToC referred to in this document are versions valid at the time of ongoing discussions between FMO and the Dutch Ministry of Foreign Affairs for the renewal of FMO’s mandate.
click here for the full report
