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FAQ SDG 7 Results

Answers to frequently asked questions about the SDG 7 Results programme.

FAQ

What does the target group ‘poor households’ mean?

The target group for SDG 7 Results is consumers in remote and challenging areas difficult for entrepreneurs to reach. When we talk about poor households, we use the World Bank’s poverty definition: people with an income of less than US$3.20 per person per day. Applicants must show in their business plan that their project proposal primarily aims to reach this target group.

As an applicant, how do I arrange pre-financing of my activities?

We expect you to be financially stable and to demonstrate that you can pre-finance your activities. You arrange the pre-financing of the project yourself, for example, through:

  • financing from a (local) bank or investor;
  • your own capital; or
  • private investors with a background as an entrepreneur (angel investors).

You do not have to pre-finance the full duration of the project. During the implementation phase, you can submit interim verification claims to us. A minimum amount applies. After verification and approval, you will receive the amount from us.

Can I get a subsidy for new, innovative services and models?

Yes, as well as successful and proven technologies, you can also apply for a subsidy for innovative services and new technologies. The conditions are:

  • New products or technologies that you add to the project after its start must have the required certificates, and we must approve them before you can use them.
  • The new products must offer at least the same level of service as the products in the original project proposal.

Can I get a subsidy if there is already a company active in the target market for my project?

This depends on the products offered and the market segment the already active company serves.

The main target group of SDG 7 Results is people with an income of less than $3.20 per person per day, who the market does not or insufficiently serves. Based on your project’s business plan and market analysis, we will assess whether you are expanding your current activities into a hard-to-reach area or market segment.

Can partners in the project proposal be from other countries than the project country?

Yes. But you must prove that the partners have relevant experience in the region and the renewable energy sector.

How does the SDG 7 Results results-based financing work?

SDG 7 Results focuses on measurable results. You submit an interim claim of the achieved connections. An independent party verifies these results before payment. We monitor this process and pay the costs.

Independent Verification Agent

An independent verifier, the Independent Verification Agent (IVA), checks the results. The IVA makes sure that we only pay if the results have been verified. We work with a verification protocol. The IVA guarantees that the applicant has met the agreements made in advance about the services offered.

Digital registration

To guarantee the quality of the grant recipient’s data, the grant recipient must use a digital system to register and monitor the results.

During the project, the grant recipient can submit up to 8 claims for verification and payment. After verification of the claim, the IVA sends us the verification report. In this report, the IVA advises us on whether the claim and the amount requested are justified. We examine and evaluate the IVA report. After approval, we pay the grant amount within 12 weeks of the request for verification.

What is additionality?

Additionality looks at whether a project can only be carried out with the help of a subsidy. When determining the additionality of a project, we use the Donor Committee for Enterprise Development (DCED) framework.

How do I calculate the bid for results-based financing?

SDG 7 Results uses results-based financing (RBF). This means that we pay the subsidy after the applicant achieves (part of) the agreed-upon results. The results are delivered and verified household connections. We base the subsidy on the number of verified connections multiplied by the bid.

The applicant decides on the bid; it must be competitive. This bid should cover part of the costs per renewable energy connection in the target market.

To calculate the bid, divide the total subsidy you will request by the number of products you will supply. The bid is the amount of subsidy per connection that you need to carry out the project. Please note that the total subsidy may not be more than 35% of the total project costs.

The project must be sustainable. What does this mean?

A project is sustainable if the products are still available to the target group after the project period has ended and you have received the subsidy. SDG 7 Results uses the FIETS checklist when assessing the sustainability of a project.

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