The SCAF III Grant Facility supports the development of utility-scale, grid-connected renewable energy projects in Africa and Asia. Working exclusively through the private sector, the Facility provides grant funding to support project developers already from the early stages of project development. The Facility contributes to enhancing the investable pipeline of renewable energy assets; it plays a catalytic role by de-risking projects for other investors to enter at a later stage.
SCAF was established in 2008 and has been implemented in cooperation with the United Nations Environment Programme (UNEP). Phase II of SCAF (2014-2026) was funded by the German International Climate Initiative (IKI) and UK FCDO. The SCAF III Grant Facility (2026-2033), funded by the German International Climate Initiative (IKI), builds on the proven approach and experience of SCAF II while evolving its toolkit and support mechanisms.
FS Impact Finance, jointly with FS-UNEP Collaborating Centre, handles deal origination, due diligence of potential partners, transaction and contract management as well as monitoring of projects, partners and KPIs.
Moreover, FS Impact Finance is in the process of setting up the SCAF III Debt Fund for established project developers in relatively mature emerging markets.
The development and deployment of renewable energy capacity in Africa and Asia is essential for providing access to clean energy and mitigating climate change. However – while investment funds provide billions for the construction and operation of projects – most developers of utility-scale, grid-connected projects face severe challenges in financing the development of bankable projects in the first place.
SCAF provides financing to project developers for activities required to turn project opportunities into investable assets – at the point in time when financing is most urgently needed. SCAF helps alleviate cashflow constraints by co-funding pre-financial close development activities like site identification, resource assessment, pre-feasibility and feasibility work, project design, environmental and social impact assessment, permitting, grid studies, commercial and financial structuring, as well as selected corporate capacity and pipeline-building activities.
SCAF offers different Support Lines for partners to be used at corporate level (SL1 for capacity and pipeline building) and project level (SL2 for development of specific projects). Developers are obliged to i) match SCAF support with at least 50% own funding for each agreed cost/activity; ii) pay back the SL2 grant once a project reaches financial close.
To date, SCAF has provided co-financing to 26 renewable energy developers for the development of more than 150 projects (+3.5 GW total capacity) in over 30 African and Asian countries. This support has helped unlock more than USD 300 million in investment at project financial close and more than USD 1 billion in financing at the corporate (developer) level. SCAF contributes to SDGs 7 (Affordable and Clean Energy), 11 (Sustainable Cities and Communities), and 13 (Climate Action).
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