Knowledge Note
In late 2006, Nepal was recovering from a decade-long conflict. Its rural population lacked access to modern energy sources, relying on biomass, which added to deforestation and indoor air pollution. Output-based aid (OBA), a form of results-based financing, supported access to clean, renewable energy through this project installing more than 27,000 biogas plants for poor households. The project yielded important lessons concerning, among other things, the benefits of aligning OBA interventions with an existing national program, particularly in a fragile context.