Pentagreen Capital and BII Unveil $80 Million Initiative to Boost Renewable Energy in Southeast Asia

Pentagreen Capital and British International Investment (BII) have launched an $80 million financing initiative to accelerate the development of utility-scale solar and battery storage projects across Southeast Asia. The collaboration, in partnership with ib vogt Singapore Pte. Ltd., a leading global renewable energy developer, aims to drive clean energy expansion in the region.

Scaling Solar and Battery Storage Projects

The newly established Development and Construction Facility (the Facility) will fund solar, hybrid solar, and battery storage projects in the Philippines, Indonesia, and other eligible Southeast Asian markets. Expected to unlock approximately $300 million in investments, the Facility will support projects delivering a combined 260 megawatt-peak (MWp) of solar capacity and 175 megawatt-hours (MWh) of battery storage.

The first project under this initiative is a 100 MWp solar power plant in the Philippines. The Facility will provide essential mezzanine financing to fast-track its construction while complementing senior debt financing from HSBC.

Meeting the Region’s Rising Energy Needs

According to the International Energy Agency (IEA), electricity demand in Southeast Asia is projected to grow by 4% annually until 2035. To align with climate goals, the region needs to scale up clean energy investments to $190 billion by 2035—five times the current levels. Renewable sources, including solar, wind, bioenergy, and geothermal, are expected to contribute significantly to the region’s energy mix.

Utility-scale hybrid solar and battery storage solutions are seen as critical for ensuring a stable clean energy supply. Battery storage enhances grid reliability by providing power during low-generation periods, such as nighttime or adverse weather conditions. Projects funded by the Facility are expected to generate approximately 400 gigawatt-hours (GWh) of clean electricity annually, preventing an estimated 257,000 tonnes of CO2 emissions.

Industry Leaders Highlight Key Milestone

Nik Mehta, British High Commissioner to Singapore, reaffirmed the UK’s commitment to mobilizing capital for a low-carbon future, noting that the initiative will drive sustainable growth, create jobs, and open new market opportunities in Southeast Asia.

Marat Zapparov, CEO of Pentagreen Capital, described the initiative as a transformative partnership that will accelerate clean energy investments. He highlighted Indonesia and the Philippines as key target markets due to their strong renewable energy potential and supportive regulatory environments.

Rohit Anand, Regional Head (Southeast Asia) and Head of Infrastructure Equity, Asia at BII, emphasized that the initiative reinforces BII’s commitment to advancing climate finance and supporting sustainable energy solutions in high-demand regions.

David Ludwig, CEO of ib vogt APAC, underscored the role of innovative financing in unlocking the next phase of ib vogt’s expansion in Southeast Asia.

Promoting Gender Inclusion in Renewable Energy

ib vogt Singapore has also earned 2X Investment recognition under the 2X Challenge, a global initiative co-founded by BII to promote gender-balanced investments. This recognition highlights ib vogt’s commitment to fostering gender diversity across its workforce, including leadership roles.

The collaboration between Pentagreen, BII, and ib vogt marks a significant step in accelerating Southeast Asia’s clean energy transition, demonstrating how innovative financing solutions can drive the future of renewable energy development.