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 International Development Association (IDA) loan to the utility.