$80M Deal to Fast-Track Southeast Asia’s Clean Energy

A major renewable energy initiative is set to accelerate clean power deployment in Southeast Asia, following the announcement of an $80 million financing facility led by Pentagreen Capital and British International Investment (BII) in partnership with ib vogt Singapore.

The funding will support the development and construction of utility-scale solar, hybrid solar, and battery storage projects in the Philippines, Indonesia, and other eligible Southeast Asian markets. With a target to unlock $300 million in projects, the initiative will add 260 megawatt peak (MWp) of solar capacity and 175 megawatt hours (MWh) of battery storage to the region’s energy mix.

Southeast Asia’s electricity demand is projected to grow at 4% annually until 2035, according to the International Energy Agency (IEA). The region must increase clean energy investments fivefold to $190 billion by 2035 to meet its climate goals.

The first project to benefit from this financing will be a 100 MWp solar power plant in the Philippines. The facility provides mezzanine financing, bridging funding gaps and facilitating the parallel deployment of senior debt from HSBC to advance the project.

Pentagreen Capital CEO Marat Zapparov described the partnership as a “landmark” collaboration, emphasizing that innovative financing solutions will be critical in scaling up renewable energy investments in the region. “We are delighted to join hands with ib vogt and British International Investment to provide capital for the scale-up of clean energy investments in Southeast Asia,” he said.

British International Investment’s Head of Infrastructure Equity, Asia, Rohit Anand, echoed the importance of mobilizing capital to accelerate the region’s clean energy transition. “We’re excited to announce this new partnership which will support the acceleration of clean energy access in Southeast Asia,” he said, adding that the initiative aligns with BII’s broader commitment to climate finance and sustainable development.

David Ludwig, CEO of ib vogt APAC, highlighted the impact this financing will have on the company’s expansion in the region. “We are thrilled to partner with Pentagreen and BII to unlock the next stage of our growth in Southeast Asia,” he said. “Our team is deeply passionate about accelerating the energy transition.”

Laura Beaufils, Ambassador at the British Embassy Manila, welcomed the financing facility and its impact on the Philippines. “I am thrilled to see that the new joint financing facility between the UK’s British International Investments and Pentagreen, with ib vogt Singapore, will support a 100MWp solar power project here in the Philippines,” she said. “This will have a positive impact on local communities and businesses, as well as supporting the just energy transition in the country.”

With Indonesia and the Philippines identified as initial priority markets due to their strong renewable energy potential and supportive regulatory environments, this financing model could serve as a blueprint for future clean energy investments across the region.

Will this investment be enough to drive Southeast Asia’s clean energy transition? What challenges remain? Join the discussion below.

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