Joint venture with Malaysian energy efficiency business marks SUSI Partners’ first investment in SE Asia
- SUSI Partners enters partnership with Malaysian company InvestEnergy, creating joint venture dedicated to financing and operating energy efficiency projects across Southeast Asia
- Joint venture combines SUSI’s extensive experience in providing capital for energy efficiency in Europe with InvestEnergy’s capabilities in developing and operating clean energy projects in SE Asian markets
- Transaction marks SUSI’s entry into emerging markets of Asia
Singapore, 19 July 2021 – SUSI Partners has entered a partnership with Malaysian energy company InvestEnergy through its SUSI Asia Energy Transition Fund (SAETF), which had its first close at USD 81 million in late May 2021. The creation of a joint venture dedicated to financing and operating energy-saving infrastructure projects across Southeast Asia marks SUSI’s first investment in an emerging market economy.
Primary target investments for the joint venture are bespoke waste-heat-recovery as well as co- and trigeneration systems for commercial and industrial offtakers. However, the mandate is broad with further opportunities, e.g. in commercial and industrial-scale onsite solar generation, being considered. Projects are backed by long-term power purchase agreements or energy performance contracts sharing the achieved energy savings between the joint venture and the end customer, thereby creating a win-win situation for all involved parties.
As the majority partner of the joint venture through SAETF, SUSI brings in its longstanding experience in investing in energy efficiency measures in Europe to Southeast Asia, where fast-growing energy demand has become a significant obstacle to meeting regional climate targets. In addition to offsetting increases in energy demand, energy efficiency projects enhance both energy security through reduced reliance on energy imports as well as economic competitiveness by lowering costs for energy consumers.
SAETF targets sustainable energy infrastructure investments across Southeast Asia. For its first closing in late May 2021, SUSI received contributions from development banks AIIB and FMO, Nordic DFIs Norfund and Swedfund, as well as private institutional investors from Germany and Singapore. Fundraising continues with final closing of the fund expected to occur in 2022.