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The paper was presented as background paper at the Seminar on “Sustainable Energy for Poverty Alleviation” organized by the Islamic Development Bank in Dushanbe, Tajikistan on 20 May 2013. Fighting poverty in member countries is a priority strategic thrust of the Islamic Development Bank (IDB). The IDB envisages supporting the poor, particularly, in least developed countries, to achieve greater prosperity by having access to basic infrastructure services, such as, electricity, water and sanitation that are economically, environmentally and socially sustainable. As widely acknowledged, low access to modern energy services is a major obstacle to achieving the Millennium Development Goals by IDB Member Countries (MC).