FMO and BII launch 500MW renewables platform with SUSI Partners to accelerate energy transition in Southeast Asia
The co-investment platform is part of SUSI’s Southeast Asia strategy, which has secured fresh commitments of $139m.
A new utility-scale renewable energy platform, Sustainable Asia Renewable Assets (“SARA”), has been set up jointly by FMO, the Dutch entrepreneurial development bank, British International Investment (“BII”), the UK’s development finance institution and impact investor, and SUSI Partners, a specialist manager of energy transition infrastructure investments. Established within the SUSI Asia Energy Transition Fund (“SAETF”), it aims to build a 500 MW portfolio of greenfield renewable energy projects across selected Southeast Asian markets by the end of SAETF’s fund life.
The initial focus of this co-investment platform will be on getting greenfield projects into construction and operation. There are also plans for SARA to develop its own proprietary pipeline of projects across Southeast Asia to create a scalable and independent renewable power platform. The Dam Nai wind farm in Vietnam, which SUSI acquired in October 2024, will become SARA’s cornerstone asset.
BII and FMO are investing USD 70 million and USD 50 million respectively through co-investment commitments to SARA and top-up commitments to the SUSI Asia Energy Transition Fund (“SAETF”). Complemented by further commitments to SAETF from existing and new investors, SUSI has more than doubled the size of its Southeast Asia-focused strategy from USD 120 million to USD 259 million (including direct co-investments). The funds are solely dedicated to sustainable energy infrastructure projects in Southeast Asia.
Due to Southeast Asia’s growing position as a global manufacturing and industry hub, the region is projected to account for more than a quarter of global energy demand growth until 2035, according to the International Energy Agency (“IEA”). Given that nearly 80% of Southeast Asia’s rise in energy demand has been met by fossil fuels since 2010, the climate impact per dollar invested in the region’s energy transition is among the highest globally.
(Front, from left) Ludger Middendorp, Manager, Private Equity Energy, FMO; Srini Nagarajan, Managing Director and Head of Asia, BII and Wymen Chan, Head of Asia, SUSI Partners; (back, from left) Sarah Love, Regional Director SE Asia, Climate, Energy and Nature, British High Commission; H.E. Nik Mehta, British High Commissioner to Singapore; Lucy Hughes, Deputy High Commissioner to Singapore.
Peter Byrde, FMO’s Private Equity Director, said, “Through this investment, SARA will be able to provide clean energy to countries in Southeast Asia that have a clear need for additional power while diversifying their energy matrix. At FMO, we are committed to a net-zero portfolio by 2050, striving towards a 1.5ºC pathway alignment at both a portfolio and investment level. As this transaction not only allows us to invest in various attractive markets, but also enables us to maximize our impact due to this being a fully green transaction, this is a clear opportunity aligned with our PE Energy strategy. We look forward to supporting these late-stage development projects across the region.”
Srini Nagarajan, Managing Director and Head of Asia at BII said: “Southeast Asia’s evolving clean energy sector offers significant potential for climate investments. Development finance institutions like ours can play a pivotal role in this transition. We are delighted to partner with SUSI and FMO to launch a new utility-scale platform in the region and to increase our support for SAETF, which was BII’s first investment in the region under our current strategy between 2022 and 2026.”
Wymen Chan, Head Asia at SUSI Partners said: “While the distinctive political, economic, and social characteristics of each of the countries in Southeast Asia requires strong local expertise and networks, we believe that the region provides us with a uniquely attractive opportunity to deliver impactful returns to our clients. The backing of reputable institutions such as BII and FMO are critical to attracting further urgently needed capital for the build-out of sustainable energy infrastructure in the region.”
Given the favourable economic outlook, the emergence of supportive policy frameworks, and the region’s substantial climate mitigation potential, SUSI Partners, BII, and FMO therefore remain fully committed to advancing the build-out of energy transition infrastructure in the region.
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