BII and Idemitsu partner with Skye Renewables to accelerate decarbonisation in South-East Asia

A joint investment from BII and Idemitsu will support the renewable energy platform's target to build over 300 MW of greenfield solar power capacity for commercial and industrial customers in the region. The solar projects are expected to help displace consumption of on-grid electricity and avoid 270,000 tonnes of CO2 emissions annually. 

SINGAPORE, March 26, 2024 /PRNewswire/ -- 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, today announced a joint investment into Skye Renewables Energy Pte Ltd. (Skye), a South-East Asia-focused renewable energy platform, forming a strong partnership to support the development of greenfield solar projects and decarbonisation of the region.

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.[1]

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.

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. 

Kara Owen, British High Commissioner to Singapore, said: "The UK and Singapore committed under the UK-Singapore Strategic Partnership and Green Economy Framework to deepen our government and private sector collaboration in the South-East Asian region so that we can effectively support sustainable infrastructure and investment. This is vital to ensure we're working together as closely as we can, to support regional climate, green economy, and energy transition goals. 

BII is a unique and valuable part of the UK's development and investment partnership toolkit, and I'm delighted to see their progress since opening their Indo-Pacific office in Singapore nearly 18 months ago. This first direct equity investment by them in South-East Asia will support Skye Renewables to scale up renewable energy solutions in an important and growing area of decarbonisation need: the commercial and industrial sector. It will unlock clean energy, create green jobs, and bring the closer collaboration and investment in the region's sustainable development that the UK wants to see."

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."

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 South-East 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 decarbonised 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 decarbonising corporate activity in the region."

This investment supports UN SDG 7 on Affordable and Clean Energy and SDG13 on Climate Action.  

Notes to editors:

About British International Investment

British International Investment is the UK's development finance institution and impact investor. British International Investment is a trusted investment partner to businesses in Africa, Asia and the Caribbean. It invests to support the UK Government's Clean Green Initiative and to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII's total new commitments by value will be in climate finance. BII intends to deploy up to £500m in climate finance projects in Southeast Asia to support decarbonisation in the region. BII is also a founding member of the 2X Challenge which has raised over $27billion to empower women's economic development.     The company has investments in over 1,470 businesses across 65 countries and total assets of £8.1 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.

About Idemitsu  

Established in 1940, Idemitsu is one of Japan's leading producers and suppliers of energy. Idemitsu operates through 67 business bases across the world, in the areas of fuel oil, petrochemicals, lubricants, electronic materials, electric power and renewable energy, oil and gas development, and coal.

About Skye

Skye Renewables is an energy-as-a-service solar company with operations in Philippines, Vietnam, Singapore and Malaysia. The company supports blue chip organisations by deploying solar systems on their premises and selling them the renewable energy via long-term contracts. In addition, as the regulations continue to develop in South-East Asia, Skye Renewables can provide renewable energy from larger 'off-site' systems. For more information, visit: www.skyerenewables.com.

[1] https://www.iea.org/reports/southeast-asia-energy-outlook-2022/key-findings