Support lines and application process

SUPPORT LINES AND BENEFICIARIES

One of the primary challenges slowing the deployment of renewable energy assets in developing countries is the «early stage financing gap». While the costs of early stage development are comparatively low, the risks and barriers for investors and developers are extremely high, dynamic and constantly changing especially in frontier markets.

The Seed Capital Assistance Facility (SCAF) is a public. sector Project Preparation Facility (PPF) designed to address this challenge by supporting private sector investment entity managers and development companies working in high-risk frontier markets in Africa and Asia.

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Elegibility Criteria

Cross-cutting criteria:

  • Target region: Southeast Asia and/or Sub-Saharan Africa (Least Developed Countries, Other Low-Income Countries and Lower-Middle Income Countries and Territories as per The Development Assistance Committee (DAC) list of Official Development Assistance (ODA) recipients which can be accessed here) (no single country strategy)
  • Sectors supported: Renewable Energy Generation, Energy and Resource Efficiency, Renewable Energy and Energy/Resource Efficiency Supply Chains. See all specific sectors here
  • More than 70% of investments in eligible countries and sectors
  • Novel strategy, business model or geography
  • Potential for replication and scalability in order to be commercially viable
  • Sufficient ESG-safeguards in place (company ESMS, ESIA according to IFC standards on project level, etc.)
  • SCAF funding must be matched 50% by the recipient

SUPPORT LINE 0

Financial product:

  • Conditional grant between USD 200,000 – USD 500,000, repayment after first close
  • Partners: First-time managers of equity investment entities (fund managers and platforms)
  • Purpose: Help new fund managers during the fundraising stage

Basic requirements:

  • First-time teams, that have not raised nor managed any kind of low carbon related investment entity in the target region

Activities typically financed:

  • Fundraising costs (e.g., conferences, travel expenses, marketing)
  • Legal set-up fees
  • 30% of the budget can be allocated to pipeline development

SUPPORT LINE 1 & 2

Financial product:

  • A combination of grants and conditional grants under a framework agreement for a total amount of between USD 0.5 million and USD 2.5 million per partner across pipeline and project development activities
  • SL 1 is a non-reimbursable grant and accounts for 30% of the total contract volume
  • SL 2 is a conditional grant and accounts for 70% of the total contract volume
  • SL 2 is repayable once a supported projects reaches FC

Basic requirements:

  • Private Equity or Venture Capital funds, Development Companies, Development platforms
  • Developing a pipeline of projects
  • Multi-country strategy
  • Existing track record

Activities typically financed:

  • SL1 supports in building a project pipeline while at the same time delivering capacity-building at the local developer level
  • Activities typically financed under SL 1 include
  • Training, coaching and workshops for local project developers
  • Project identification (e.g., event participation, travel expenses)
  • Pre-investment feasibility studies
  • Project Development
  • SL 2 co-finances, with PE/VC funds and DevCos, the development costs of getting seeded projects to full financial close
  • Activities typically financed under SL 2 include
  • Independent technical and project assessments
  • Feasibility studies
  • Financial risk analysis and project valuation
  • Regulatory compliance and framework reviews
  • Environmental, social and governance (ESG) risk analysis

FOR SCAF II SUPPORT

APPLICATION PROCESS

One of the primary challenges slowing the deployment of renewable energy assets in developing countries is the «early stage financing gap». While the costs of early stage development are comparatively low, the risks and barriers for investors and developers are extremely high, dynamic and constantly changing especially in frontier markets.

 

GET TO KNOW US

Download the application guide. Get familiar with our support lines and with the requirements to apply.

 

APPLY

Send your initial enquiry to the SCAF Agents at info@scaf-energy.org

 

ELIGIBILITY

Interested entities are invited to submit a proposal once the SCAF Agent has conducted a preliminary check.

 

DUE DILIGENCE

After the RC has endorsed the proposal, the SCAF Agent together with the Programme Management Unit (PMU) proceeds to an on-site due diligence.

 

CONTRACTING

If the due diligence is completed successfully, the PMU asks the SCAF Agent to complete a cooperating partner agreement (CPA).

5. CONTRACTING

If the due diligence is completed successfully, the PMU asks the SCAF Agent to complete a cooperating partner agreement (CPA).

4. DUE DILIGENCE

After the RC has endorsed the proposal, the SCAF Agent together with the Programme Management Unit (PMU) proceeds to an on-site due diligence.

1. GET TO KNOW US

Get familiar with our support lines and all applicable requirements with details further up.

2. APPLY

Send your initial enquiry to the SCAF Agent at  info@scaf-energy.org

3. ELIGIBILITY

Interested entities are invited to submit a proposal once the SCAF Agent has conducted a preliminary check.

IMPORTANT

SCAF cannot support stand-alone projects, but rather tries to enable the partnering company to grow and expand the business into frontier markets while relying on a substantial pipeline of projects that justifies long-term support.

KEY BENEFITS OF SCAF‘S PARTNERS

LOWER DEVELOPMENT COSTS

INCREASED CAPACITY BUILDING

REDUCED IMPACTS ON ACTIVITIES

REPUTATIONAL CREDIBILITY