Sustainable Energy for Schools and Health Centers: Public–Private Partnerships for People’s Prosperity

Off-grid solar technology brings electricity to schools and health centers and is often more affordable and faster to deploy than extending national grids. It is a critical part of Mission 300’s commitment to connect 300 million people to electricity by 2030. Yet too often, these systems are installed without the plans or resources needed to keep them operational, resulting in power outages and service disruptions. This lack of maintenance compounds an already persistent energy deficit, further undermining public services and holding back progress in health care, education, and human capital development—the foundation of jobs, productivity, and economic growth. 

The report, Sustainable Energy for Schools and Health Centers: Public–Private Partnerships for People’s Prosperity, calls for a shift from one-off solar installations to service-based, performance-driven models to ensure long-term, reliable power for public institutions. This is not just about deploying technology; it is about making sure the lights stay on, medical devices keep running, and students can achieve their potential.

Q&A section:

What is the connection between electricity, health, and education? 
Electricity powers quality public services. In health centers, dependable electricity means vaccines can be refrigerated, equipment runs safely, and emergency care is possible after dark. In schools, it enables digital learning, extends usable hours, and supports safer cooking. Without reliable electricity, health and education investments fall short of their promise.

How can we ensure that off-grid solar systems remain reliable in public institutions? 
The challenge is not the technology, it is the (lacking) delivery and maintenance model.  Off-grid solar is a game-changer that enables rapid, cost-effective electrification of even the most remote public institutions. Unfortunately, off-grid equipment is typically installed and handed over without long-term funding or maintenance plans. Schools and clinics are left with systems they don’t have the capacity or resources to keep running. As a result, systems fail, repairs are delayed, and communities lose access to electricity once again. Breaking that cycle and sustainably closing the access gap requires not just more funding — though current annual spending of around $120 million is a fraction of the $2.4 billion needed by 2030 — but a shift in how that funding is deployed. 

What does a service-based model look like in practice? 
Under an Energy-as-a-Service model, governments do not buy solar equipment—they pay for electricity. A private energy service company (ESCO) is contracted to install, operate, and maintain the system over time, under clear, agreed-upon performance standards.   Systems can be remotely monitored, so that problems can be identified and addressed quickly. Payments are made only if electricity is reliably delivered. This places the responsibility for the system's performance on the provider rather than on the school or health center.

What is the report’s 5P framework? 
The 5P — Public-Private Partnerships for People's Prosperity —framework provides a scalable approach. By bundling electricity provision for multiple schools and health centers into a single contract, it creates the scale needed to attract private investors even in underserved markets where smaller contracts are not financially viable.  It combines long-term service contracts between public sector clients and private ESCOs with blended finance—using public and concessional funds to reduce risk and crowd in private investment.

What does the evidence show? 
Pilot programs in Benin, Madagascar, Nigeria, and Uganda provide particularly strong evidence that when public funding is structured to support performance-based contracts, the private sector comes in. The report draws on these experiences to provide a seven-step toolkit for governments and development partners designing similar programs.

What needs to change for governments and donors? 
The role of governments and development partners must shift from installing solar systems to procuring energy services. This requires helping public institutions to build the capacity to tender and manage long-term service contracts. Public funding must be designed to support long-term service provision—not one-off installations—by using instruments such as performance monitoring frameworks, grants, and guarantees to reduce transaction risks for private investors. This will help ensure providers are compensated for electricity delivered over time, not just for systems installed.

What guarantees are in place to ensure that private companies remain accountable? 
Accountability is built into the model at every level. Service payments are tied directly to performance — providers are paid only when electricity is reliably delivered against agreed standards, supported by real-time monitoring and independent verification. Private companies are also required to invest their own equity and often mobilize debt, giving them strong incentives to deliver results beyond grant support. Long-term Energy Service Agreements — typically around 10 years — create clear, sustained obligations for operations and maintenance, not just installation. Contracts set minimum service standards and include penalties or payment deductions for underperformance. Finally, competitive procurement processes, such as reverse auctions, ensure that qualified providers are selected at efficient prices with clear expectations established from the outset.

Infographic

Public-Private Partnerships for People's Prosperity