Renewable Energy

Seed Capital Assistance Facility

The Seed Capital Assistance Facility (SCAF) aims to increase investments in the renewable energy sector in Southeast Asia and sub-Saharan Africa. Working exclusively through the private sector, SCAF provides financing to fund managers and project developers to support the early stages of renewable energy project development. The facility thereby contributes to enhancing the investable pipeline of renewable energy assets.

SCAF was incepted in 2008 and is jointly implemented with the United Nations Environment Programme. FS Impact Finance, jointly with FS UNEP Collaborating Centre, handles deal origination, due diligence of potential partners, and the monitoring of key performance indicators. The current phase II of SCAF (since 2014) is funded by the German International Climate Initiative (IKI) and the governmental organization UK Aid. A third phase is currently under development.

Problem

Renewable energy developers in frontier markets face significant development risk and uncertainty. While the financing requirements at the earlier stages of development are comparatively low, due to the risk and uncertainty, developers are required to build large, diversified pipelines which carries a significant cost. The result is a limited pipeline of investable assets.

Solution

SCAF cooperates with fund managers and project development companies to derisk development. SCAF achieves this by deploying capital to address the human and financial capital constraints faced by partners to develop early-stage assets. The finance mechanism in place is a combination of reimbursable and non-reimbursable grants.

Impact

To-date, SCAF has co-financed the development of 3 GW across 18 frontier markets in Southeast Asia and Sub-Saharan Africa. It has provided USD 34 million of co-financing to 24 partners across 135 projects. SCAF tackles SDGs 7 (Affordable and Clean Energy), 11 (Sustainable Cities and Communities), and 13 (Climate Action). The co-financing provided is expected to unlock over USD 100 m in development capital alongside mobilizing over USD 4 bn at financial close of these projects.

GW capacity supported

million USD for clean energy projects in frontier markets

jobs created

tCO2e mitigated

Case Studies & Blogs

Kodéni Solar PV Power Plant in Burkina Faso

In early 2024, Kodéni became operational, a 38 MW solar PV power plant developed by AfricaREN near Bobo Dioulasso in Burkina Faso.

Ocean Renewable Energy

The oceans contain the largest untapped source of renewable energy (RE) and have fast become the new arena for RE technology deployment through the development of large-scale offshore wind farms.

Minigrids as part of the solution to address rural electrification in Sub-Saharan Africa

To date, more than 600 million people in Africa still live without electrification. Minigrids can play an important role in closing the electricity access gap in SSA.

The Rise of the Banh Mi

Southeast Asia will shape many aspects of the future world economy and energy market. The region is on its way to reach universal access to electricity.