- A combined investment from BII and Idemitsu will aid the renewable energy company's goal to construct more than 300 MW of new solar power capacity for business customers in the area.
- The solar projects are predicted to assist in replacing on-grid electricity usage and preventing 270,000 tons of CO2 emissions each year.
The UK's development finance institution (DFI) and impact investor, British International Investment (BII), and Idemitsu Kosan (IKC), a leading Japanese energy company, have jointly invested in Skye Renewables Energy Pte Ltd. (Skye)., This forms a strong partnership to promote the development of new solar projects and reduce carbon emissions in South-East Asia, focused on renewable energy.
South-East Asia has a rising demand for power and relies heavily on fossil fuels, creating an opportunity for the growth of renewable energy as part of decarbonisation efforts. Renewable energy demand is expected to increase by 4.4 times based on the current policy landscape, while primary energy demand is projected to grow by 1.8 times by 2050.
Established in 2022, Skye develops solar projects and offers off-grid clean energy to business customers in the region, including the Philippines, Vietnam, Singapore, and Malaysia, under long-term power purchase agreements.
The commercial and industrial (C&I) sector represents a significant portion of energy demand in South-East Asia. Providing solar power to C&I businesses presents a great opportunity to meet the region's growing energy demand in a sustainable way and assist countries in reaching their sustainability objectives.
Drawing from BII and IKC’s extensive experience in the global renewable energy sector, the investment aims to help Skye become a larger regional renewable energy platform with a solar capacity of over 300MW in the next few years, supporting the region’s sustainability goals.
As Skye expands, the solar projects are expected to prevent 270,000 tonnes of CO2e annually, equivalent to the emissions generated by over 47,000 homes’ electricity use in a year.
Kara Owen, British High Commissioner to Singapore, said: “The UK and Singapore committed under the UK-Singapore Strategic Partnership and Green Economy Framework to deepen our government and private sector collaboration in the South-East Asian region so that we can effectively support sustainable infrastructure and investment. This is vital to ensure we’re working together as closely as we can, to support regional climate, green economy, and energy transition goals.
BII is a unique and valuable part of the UK’s development and investment partnership toolkit, and I’m delighted to see their progress since opening their Indo-Pacific office in Singapore nearly 18 months ago. This first direct equity investment by them in South-East Asia will support Skye Renewables to scale up renewable energy solutions in an important and growing area of decarbonisation need: the commercial and industrial sector. It will unlock clean energy, create green jobs, and bring the closer collaboration and investment in the region’s sustainable development that the UK wants to see.”
Srini Nagarajan, Managing Director and Head of Asia at BII, said: “BII's investment in South-East Asia in 2022 is the first one in the region. Skye gives BII the chance to work with experienced partners like IKC to expand renewable energy, which will benefit the region. The goal is to increase climate finance in the area and to support more renewable energy capacity and local government efforts on decarbonisation.”
Hiroshi Yoshida, General Manager of Power & Renewables Business Department at IKC, commented: “In 2022, we partnered with Skye and made significant progress in the C&I rooftop solar space in South-East Asia. Now, with BII as a new partner to Skye, who has a proven track record of success in the global renewable energy sector, we believe it will create great synergy among us. By leveraging the strengths of each company, we aim to further grow Skye as a renewable energy platform in South-East Asia and contribute to a decarbonised society.”
Ross Coull, Founder of Skye Renewables, commented: “We are very pleased that BII has chosen Skye as their first direct equity investment in South-East Asia. Their track record in renewable energy across multiple markets is extensive and I am confident that they will bring a lot of value to Skye; they will be a great partner to support our ambitions of decarbonising corporate activity in the region.”
