British International Investment (BII) and Dutch development bank FMO are co-investing with infrastructure fund manager SUSI Partners to build a portfolio of new green energy projects in Southeast Asia.
BII and FMO are investing $70 million and $50 million, respectively, to establish the Sustainable Asia Renewable Assets platform with the SUSI Asia Energy Transition Fund (SAETF), the investors said in a statement.
The BII and FMO investments include top-up commitments to the SAETF, which has now grown to $259 million with further commitments from other limited partners, from the time it closed in 2023 at $120 million.
BII first committed $15 million to SAETF in May 2023, marking the institution’s first investment in Southeast Asia under its 2022-2026 strategy.
SAETF, which focuses on utility-scale renewable energy infrastructure, as well as distributed generation and energy efficiency projects, has since invested in Vietnam, the Philippines, Thailand, and Cambodia.
The Dam Nai wind farm in Vietnam, which SUSI acquired in October last year, will be a cornerstone asset for the new renewable assets platform.
The development of renewable energy infrastructure comes as Southeast Asia is projected to account for more than a quarter of global energy demand growth until 2035, driven by manufacturing. Nearly 80% of the rise in energy demand has been met by fossil fuels.