A successful Phase I
Funded by the Global Environment Facility and the UN Foundation, Phase I of SCAF started in 2009. Over a seven-year period, the Facility worked with 10 investment partners and provided USD 2.4 million of seed financing to 20 renewable energy projects in 14 developing countries in Africa and Asia.
Phase II builds on experiences from Phase I
Phase II started in 2014 and will run until 2026, supported by contributions from the UK Department for International Development and the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety. The Facility seeks eligible partners active in low and lower-middle income countries of Africa and Asia.
Three main changes were made to the Facility
- Support Line 0: A new support line, termed SL 0, has been established to help new fund managers fundraise for and establish new low-carbon private equity or venture capital funds.
- Project development companies: In addition to private equity and venture capital funds, SCAF can also now partner with certain types of project development companies.
- Support Line 2: The amount of SL 2 support per project has been increased to have greater impact, although it is now reimbursable for projects that achieve financial close. This “evergreen” approach allows deployed SCAF resources to re-flow and to be used for other projects.
SCAF’s Frontier Market and Sector requirement limits partners to no more than two of the same technology application in the same country, helping to build their viability and prepare the markets for future scaling and acceleration.
As a true public-private partnership facility, SCAF implementation features are continuously amended to reflect rapidly changing renewable energy market conditions in its target geographies.