BII and Idemitsu Partner With Skye Renewables to Accelerate Decarbonisation in South-East Asia

British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, and Idemitsu Kosan (IKC), one of Japan’s leading energy companies, announced a joint investment into Skye Renewables Energy (Skye), a South-East Asia-focused renewable energy platform, to support the development of greenfield solar projects and decarbonisation of the region.

Established in 2022, Skye develops solar projects and provides off-grid clean energy to commercial and industrial (C&I) customers in the region including the Philippines, Vietnam, Singapore and Malaysia, under long term power purchase agreements.

South-East Asia is a region with an increasing demand for power and a high reliance on fossil fuels which creates an opportunity for the growth of renewable energy as part of decarbonisation efforts. While primary energy demand in the region is expected to grow by 1.8 times by 2050, renewable energy demand is estimated to grow by 4.4 times based on the current policy landscape.

The C&I sector accounts for a significant portion of energy demand in South-East Asia. Providing solar power to C&I businesses offers a good opportunity to keep pace with the region’s growing energy demand in a sustainable way and help countries to achieve their sustainability goals.

Governments have introduced supportive policies for this nascent segment to scale clean energy deployment in C&I sectors and accelerate energy transition 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.

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 governments’ efforts on decarbonisation.”

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 decarbonising corporate activity in the region.”