Projects examples

SCAF ACTIVITY IN AFRICA: SUPPORTED PROJECTS

KOUGA
WIND
FARM

South Africa

Kouga Wind Farm in South Africa was seed-financed by Inspired Evolution Investment Management for USD 1.2 million, of which SCAF co-financed USD 340,000 to cover grid-connection and engineering studies, environmental assessment, financial modeling and other preparatory activities.

Developed under the first auction round of the South African Renewable Energy Feed-in Tariff (REFIT) programme, the 77 MW project went on to raise ZAR 1.9 billion in construction financing, of which approximately ZAR 100 million was from Inspired Evolution‘s Evolution One Fund. Commissioned in 2015, Kouga Wind Farm is one of Africa’s first large-scale wind farms.

SCAF ACTIVITY IN ASIA: SUPPORTED PROJECTS

THE BLUE
CIRCLE

Indonesia
Philippines
Thailand

In order to secure a pipeline of bankable renewable energy projects, Armstrong is investing in a number of project development companies (DevCos) across South-East Asia. One such investment is in The Blue Circle, a vertically integrated DevCo of wind and solar projects in Indonesia, the Philippines and Thailand. The company brings international project development experience as well as financial expertise and capabilities together with local market understanding.

In 2014, Armstrong entered into a partnership with The Blue Circle that included an investment of USD 1 million to seed-fund a number of project developments, as well as a framework for investing USD 40 million in projects that are fully permitted and have made it to full financial close. SCAF support of USD 200,000 has been provided for sourcing and coaching projects.

AKIIRA
GEOTHERMAL
POWER PLANT

Kenya

Akiira is a 70 MW geothermal project in Kenya with a total investment cost of around USD 300 million. It is the country’s first privately financed geothermal project where investors have exposure to drilling risk. Preliminary construction work on water piping, access roads and drill pads started in early 2014. As a next step, two appraisal wells will be drilled to the full production depth of 3000m. If the wells confirm commercial potential, an additional thirteen wells will be drilled. Of the total fifteen wells, twelve will be used for production and three for reinjection.

SCAF has been involved in the project by supporting negotiations with KENGEN on operations and maintenance, reviews of the output estimation, the financial model and key contracts with suppliers. SCAF also co-financed a partner risk assessment and provided support for the financial and legal structuring of the project. Frontier has provided USD 965,000 in seed financing, including USD 225,000 of SCAF support.

GREEN INDIA
BUILDING
SYSTEMS
AND
SERVICES
(GIBBS)

India

Green India Building Systems and Services Private Limited (GIBSS) helps businesses reduce energy costs by providing energy efficiency products and solutions including geothermal cooling, LED lighting and hot water co-generation. The GIBSS portfolio of solutions helps reduce operating costs in buildings by 60% to 80%.

INFUSE Capital, a venture capital fund that targets the clean energy sector in India, invested in the company. Through INFUSE Capital, SCAF provided financial support of USD 112,000 to GIBSS for product certifications, project assessments and environmental liability risk analysis. Besides GIBSS, INFUSE Capital has invested in five other companies that offer products and services in India’s cleantech sector.

LUBILIA
HYDROPOWER
PROJECT

Uganda

The Lubilia project is a 5.4 MW run-of-the-river hydropower plant located on the Lubilia River in Western Uganda. Power generated by the plant will be sold under a 20-year power purchase agreement, and the transmission line to the nearest grid substation at Nkenda will be financed by the Rural Electrification Agency.

The DI Frontier Market Energy & Carbon Fund has been working with the local developer on upgrading various aspects of the plant’s technical design. SCAF provided financial support for the evaluation of technical solutions, flow measurements and financial feasibility, as well as ESG (environmental, social and governance), legal and tax structuring. Frontier has provided USD 940,000 in seed financing, including USD 188,000 of SCAF support.

LAKE
MAINIT
PROJECT

The
Philippines

The Lake Mainit Hydropower Project is a 25 MW hydroelectric power project under construction on the southern island of Mindanao in the Philippines. The project’s hydro resource is supplied by a natural lake and provides the added benefit of offering some flood mitigation.

The Renewable Energy Asia Fund has partnered with a local developer to invest USD 13 million in the project and, together with a local bank, to finance construction of the necessary intake structure, tunnel and power house, from which the project will sell the generated power to a local electricity cooperative. SCAF support was used to co-finance early-stage development activities, including land permitting, independent design validation, grid impact analysis and environmental and social impact assessment.