SOUTHEAST ASIA: A coalition of three global financial institutions has launched a new greenfield renewable energy platform in Southeast Asia, aiming to generate 500 megawatts (MW) of clean power in the region. The initiative, spearheaded by the Sustainable Asia Renewable Assets (SARA), is set to significantly boost the Philippines’ and Vietnam’s energy transition, with the potential for the total investment to reach up to $700 million.
According to a recent Asian Power report, the partnership brings together British International Investment (BII), FMO (a Dutch development bank), and SUSI Partners AG (a Swiss-based investment company) to develop solar, wind, and hydropower projects across the region. Rohit Anand, regional head for Southeast Asia at BII, said that the funds will be raised through $500 million in debt and an additional $150 million in equity capital, with the entire project slated for completion over the next three years.
Seizing opportunities in the Philippines and Vietnam
In selecting the Philippines and Vietnam as the starting points for their renewable energy push, the three partners are targeting markets with significant untapped potential for clean energy growth. Fossil fuels dominated electricity generation in both countries in 2023, accounting for 58% of Vietnam’s and 78% of the Philippines’ energy production, according to energy think tank Ember. However, both nations are working to meet ambitious clean energy targets—Vietnam aims for 50% clean energy by 2050, while the Philippines is targeting 50% by 2040.
Anand highlighted the Philippines’ favourable regulatory environment, noting that it is the “most liberalised energy market” in the region, making it an ideal location for investment. Meanwhile, Vietnam is facing an urgent need for additional power supply.
A growing opportunity in Southeast Asia’s clean energy future
Despite accounting for 6% of global GDP, Southeast Asia attracts only 2% of global clean energy investments. The International Energy Agency has highlighted that this investment level must increase fivefold to $190 billion by 2035 for Southeast Asia to meet its net-zero emission goals by 2050. The collaboration behind the 500 MW greenfield project aims to demonstrate that high-quality renewable energy businesses can be built in the region, inspiring more investors to take the early-stage risks necessary for large-scale transformation.
The SARA-led project is already off to a promising start with the 40-MW Dam Nai wind farm in Vietnam’s Ninh Thuan province. With plans to scale up to 500 MW over the next few years, the initiative is positioned to play a vital role in Southeast Asia’s renewable energy future.