British International Investment (BII), the Development Finance Institution (DFI) and impact investor of the UK, has partnered with Idemitsu Kosan (IKC), a prominent energy company in Japan, to collectively invest in Skye Renewables Energy Pte Ltd. (Skye). This collaboration aims to bolster the advancement of greenfield solar projects and promote decarbonization efforts in South-East Asia.
In South-East Asia, there is a rising need for energy alongside a heavy dependence on fossil fuels, presenting an opening for the expansion of renewable energy as a component of decarbonization initiatives. Forecasts indicate that by 2050, primary energy demand in the region will increase by 1.8 times, while demand for renewable energy is projected to surge by 4.4 times under existing policy frameworks.
The commercial and industrial (C&I) sector constitutes a substantial portion of energy demand in South-East Asia. Offering solar power solutions to C&I enterprises presents a favorable opportunity to meet the region's increasing energy needs sustainably and contribute to the attainment of national sustainability objectives. Governments have implemented supportive policies to facilitate the expansion of clean energy deployment in this emerging sector, thereby hastening the transition to renewable energy across the region.
Drawing from BII and IKC’s extensive track record in the renewable energy sector globally, the investment aims to support the region’s sustainability goals by transforming Skye into a scaled-up regional renewable energy platform with a solar capacity of over 300MW in the coming years. As Skye grows, the solar projects are expected to help avoid 270,000 tonnes of CO2e annually, which is equivalent to the emissions generated by over 47,000 homes’ electricity use in a year.
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Srini Nagarajan, Managing Director and Head of Asia at BII said, “This investment marks the first direct equity investment by BII in South-East Asia since our re-entry to the region in 2022. Skye provides BII the opportunity to work with experienced partners like IKC to scale up this renewable energy platform that will benefit the region. Our goal is to boost climate finance in the region and so we look forward to supporting more greenfield renewable energy capacity and local government’s efforts on decarbonization”.
Hiroshi Yoshida, General Manager of Power & Renewables Business Department at IKC, commented, “We formed a partnership with Skye in 2022 and have made significant progress in the C&I rooftop solar space in Southeast Asia. Now, with the addition of 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 decarbonized society”.
Ross Coull, Founder of Skye Renewables, commented, “We are absolutely delighted 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 sure that they will bring a huge amount of value to Skye; they will be a great partner to support our ambitions of decarbonizing corporate activity in the region”.