Temasek-backed lender Pentagreen Capital and the UK’s development finance institution British International Investment are jointly committing $80 million in financing to solar energy company ib vogt Singapore.
The funding will go towards the development and construction of solar, hybrid solar, and battery storage projects in Southeast Asia, beginning with a 100 megawatt peak (MWp) solar power project in the Philippines. The project will use the mezzanine financing to start construction, and the funding will be complemented by senior debt from HSBC.
The partnership seeks to kickstart about $300 million worth of projects, with a total capacity of about 260 MWp of power generation, and 175 megawatt hours of battery storage.
“Indonesia and the Philippines have been identified as the initial markets for this financing due to their strong renewable energy potential, supportive regulatory environments, and growing demand for clean power,” Pentagreen Capital CEO Marat Zapparov said in a statement.
Set up in 2021, Pentagreen Capital is a 50-50 venture between Singapore state investor Temasek and London-headquartered bank HSBC. It provides debt financing for the development of sustainable infrastructure projects in South and Southeast Asia, including energy, transport, and water and waste management.
BII, which re-entered Southeast Asia in 2022, is doubling down on commitments to the region through direct equity and selected fund investments, via both equity and debt structures.
The initial projects supported by the BII-Pentagreen financing will add a combined 400 gigawatt hours of clean electricity supply a year and thus avoid about 257,000 tonnes of carbon dioxide emissions, the two institutions said in a release.
According to the International Energy Agency, electricity demand in Southeast Asia is set to rise at 4% annually to the year 2035. About a third of this growth in energy demand is expected to be met by renewable power generation.
