Seed Capital Assistance Facility (SCAF)

Securing financing from the private sector for projects aimed at mitigating CO2 emissions in emerging and developing countries is very challenging. Firstly, private investors are reluctant to take on major risks. Secondly, the high fees charged for credit on international capital markets also makes project development more difficult. As a multi-donor trust fund, SCAF improves the financing of projects during the development phase to enable the rollout of climate-friendly technologies. This helps to promote sustainable, low-carbon development as well as economic growth while tackling poverty and working to contain climate change. The spectrum of funding programmes ranges from financial support for feasibility studies and business plans in the pre-investment phase through to the co-financing of approval procedures as well as due diligence audits in the later stages of the project development phase. The current geographical focus is on Asia and Africa.

Project data

IKI funding: 16,100,000.00 €
Duration: 11/2014 till 09/2027
Status: open
Implementing organisation: United Nations Environment Programme (UN Environment)
Implementing Partner: Frankfurt School of Finance & Management gGmbH
Online: http://www.scaf-energy.org

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State of implementation/results

By the end of 2024, SCAF II has signed 27 Agreements with Cooperating Partners (CPA). In total, 94 projects across Africa and Asia received early-stage development support (SL1), while 52 projects were seeded with co-financing for late-stage development (SL2), with a combined capacity of 3,478 MW.-- In 2024, four new agreements were signed with Izuba Energy II, Source Energia, Alba Renewables, August Energy, all of them receiving support under Support Lines (SL) 1 and 2.-- Support Line 1 (Pipeline Development Support):
- In 2024, three new projects received support through SL1-co-financed activities.
- By the end of 2024, the total number of SL1-supported projects reached 94, receiving early development support and totaling 5,568.9 MW.
Support Line 2 (Seed Capital Co-financing):
- In 2024, 12 additional projects received support through SL2 co-financed activities, receiving seed finance for early- and mid-stage development and increasing the total number of projects under SL2 to 52. Once materialized, these projects will have a projected capacity of 3,478 MW.
- To date, in total seven SL2-funded projects have reached financial close: These projects were brought forward by Dam Nai-Wind (Vietnam, The Blue Circle); Tarlac (Philippines, Sindicatum), Dai Phong (Vietnam, The Blue Circle); GZH (Zimbabwe, VS Hydro), Kodéni (Burkina Faso, Africa REN), Walo Storage (Senegal, Africa REN), among others. Additionally, three SL2 projects supported by SCAF (from Greenwish and Levanta Renewables) sold their projects to new investors.
Project Highlights:
- The Dai Phong Wind Project, developed by The Blue Circle in Vietnam’s Bình Thuận province, is a landmark 40 MW initiative powering urban and rural areas with clean energy. Completed in 2020, the wind farm offsets over 160,000 tons of CO₂ annually while strengthening grid reliability for industrial and residential users.
- Africa REN’s Walo project is a hybrid project combining a 20MWh battery system and a 16MW solar PV plant, developed in Bokhol, in the north of Senegal. The project has signed a 20 year take-or-pay PPA with Senelec. In July 2024, Walo reached financial close and has since then begun construction and should be commissioned at the end of 2025. Amongst other planned actions, the project has committed to build three mini-solar power stations to supply pumping stations, promote the hiring of local workers and assist the commune in its electrification process. The project will aim to reduce CO2 emissions by 26,600 tCO2eq/annum.
- Great Zimbabwe Hydro (GZH) is a 5MW hydro project in the Masvingo province, Zimbabwe. The project is adjacent to the Lake Mutirikwi dam wall, the second largest inland dam in Zimbabwe. This dam was built in the 1960s with the intention to produce power but only recently was the power project developed. GZH reached financial close in 2022 and has started operations in November 2024. It is expected that the project will reduce CO2 emissions by 15,000 tCO2eq/annum.
Knowledge series and events:
- The SCAF team attended the Africa Energy Forum (Barcelona, June 2024): SCAF also hosted a well-attended breakfast meeting at AEF, which brought together DFIs, investors, and partners to explore the challenges facing renewable energy development in Africa.
- In April-May 2024, the SCAF Agent attended the Annual AVCA Conference.
- In December 2024, the SCAF Agent attended the Super Return Africa, the continent's biggest and most senior private capital conference.
- Throughout the year, SCAF published different blog posts and articles to share lessons learnt from the market and valuable insights from its partners. It also hosted an ESG session with its partner JCM Power who shared valuable first-hand insights, lessons learned and best practices in managing social and environmental risks.