The Private Infrastructure Development Group has set up a $30-million joint venture platform with Singapore-based August Energy Investment Co to finance and operate energy-as-a-service (EaaS) projects in the Philippines, Vietnam, and Thailand.
In a joint statement, the partners said they will provide $30 million of initial equity and aim to deploy about 135 megawatts of decentralised renewable generation and battery storage over the next three years.
The platform is expected to mobilise up to $100 million in blended capital from public and private sources through partnerships with local developers and lenders, the companies said.
The projects, alongside “integrated utilities” such as cooling-as-a-service, will target commercial and industrial users in the three Southeast Asian countries, per the announcement.
EaaS models let factories and other large power users adopt on-site or contracted clean power without upfront capital spending, shifting costs to longer-term service payments. August Energy says its offering can combine renewable generation, storage, and cooling.
Claire Jarratt, head of Investment Management – InfraCo at PIDG, said EaaS service “represents one of the most exciting shifts in corporate decarbonisation”, but it is still emerging in Southeast Asia.
“By offering companies clean energy solutions without the need for any upfront investment, we are lowering barriers and proving that rapid decarbonisation can be both affordable and commercially attractive,” Jarratt said.
Southeast Asia’s rapid growth is driving up electricity demand, while governments and companies face pressure to curb emissions and air pollution.
In 2023, 85% of the region’s population was exposed to polluted air above World Health Organization guideline levels, the International Energy Agency said.
The IEA has also warned that the region needs to lift annual clean-energy investment to about $190 billion by 2035, around five times current levels, to align with stated climate goals.
PIDG is funded by the governments of the UK, Netherlands, Switzerland, Sweden, Australia, Canada, and Germany. It operates mainly in sub-Saharan Africa and South and Southeast Asia, on climate projects and sustainable development.
Earlier this month, it forayed into Laos, investing $2.5 million in the country’s largest ride-hailing service LOCA. It also made significant investments in the region, including in Vietnam, where it has financed major clean water facilities, a utility-scale solar farm, and into electric motorcycle startup, Dat Bike.
