Bangladesh Energy Access to Modernisation Fund (BEAM Fund)

The "Bangladesh Energy Access to Modernization (BEAM)" project, implemented by SNV from November 2021 to June 2023, was part of the EnDev Innovation Window. This project leveraged SNV’s global expertise in Results-Based Financing (RBF), incorporating retrofit and conditional cash transfer design principles to foster a market-driven, socially inclusive approach for demand-side subsidies.

The challenge

The BEAM Fund aimed to develop a viable model for using demand-side contributions to offer vulnerable customer segments quality e-cooking options. The project sought to ensure that rural consumers had access to reliable and clean energy services from sustainable sources, aligning with the Government of Bangladesh’s (GoB) priorities. The GoB aims to promote stove stacking practices to achieve universal access to clean cooking by 2030.

Specifically, the project evaluated the effectiveness of demand-side subsidies in promoting the adoption of electric cooking (e-cooking) among vulnerable segments in the Gazipur and Jhenaidah districts. This innovation was directly in line with GoB's goals for enhancing clean cooking solutions.

The approach

The BEAM project tested two key hypotheses related to customer acquisition within poor households:

• Demand-side subsidies would increase the purchase of e-cookers among new customers, including lower-income groups.

• Conditional subsidies targeting households with an existing improved cookstove would not significantly increase the acquisition of e-cookers among poorer customers.

Results indicated that demand-side subsidies successfully encouraged e-cooker purchases among new, lower-income customers. However, conditional subsidies did not increase the acquisition rate among poor customers.

To ensure transparent subsidy distribution, the project used Mobile Financial Services and followed RBF guidelines. Demand creation activities included word-of-mouth recommendations from existing female customers, focus group discussions, product demonstrations, and targeted marketing campaigns. A web application facilitated monitoring to prevent duplicate claims.

Project outcomes

The impact of the project was measured through an endline survey conducted by 60 Decibels. The results exceeded benchmarks for quality of life, Net Promoter Score, and challenge resolution.

Key recommendations from the project included:

• Making e-cookers more accessible to the poorest populations by allocating funds based on poverty indices.

• Integrating social inclusion programs to address barriers such as digital literacy, ensuring affordable e-cookers reach vulnerable groups.

The BEAM project explored an innovative approach to empower low-income customers in Bangladesh to access clean cooking solutions. While demand-side subsidies effectively increased e-cooker acquisition, targeting poor customers with conditional subsidies alone posed challenges. These insights will help optimise demand-side subsidy strategies, furthering the reach of electric cooking solutions across the country.