Providing electricity to poor households in rural areas in Ethiopia is critical to improving the health and living conditions of the population, reducing poverty, and stimulating growth. A project supported by the Global Partnership on Output-Based Aid (GPOBA) is accelerating the pace of connections in electrified areas and fostering energy efficiency.

The scheme provides a performance-based subsidy to the state-owned utility in Ethiopia linked to the delivery of pre-agreed outputs, including the connection and provision of services on a sustainable basis. As part of the connection package, poor households receive two compact fluorescent lamps (CFLs).   The project has potential for scaling up with a future IDA loan to the utility.

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