The Singapore Asia Clean Energy Facility (SEACEF) has put an undisclosed amount in Indonesian renewable energy startup PT Xurya Daya Indonesia.
Singapore-headquartered Clime Capital’s climate fund has made its first investment, the firm announced.
Managing director Mason Wallick declined to value the investment. But he told Citywire Asia it was ‘intended to provide Xurya with sufficient capital to make significant strides in their development’.
Xurya aims to make solar energy widely used in Indonesia, by initiating and completing rooftop solar leasing projects.
The investment will support its growth, and the completion of an 80 megawatt-peak pipeline for commercial and industrial customers in Indonesia.
Clime Capital described Indonesia’s rooftop solar opportunity as ‘massive’ and exceeding 200,000 megawatts of potential capacity.
However, less than 150 megawatts have been installed across the country, despite the lower cost of solar system components, the firm said.
‘SEACEF sees an opportunity to provide critical funding to support achieving the sizeable commercial and industrial rollout, and scale needed to achieve economies of scale and widespread adoption in Indonesia.
‘The investment comes at a crucial time for the market, when investors and developers are pulling back from renewable energy development as a result of the Covid-19 economic slowdown,’ it added.
Eka Himawan, managing director at Xurya, similarly observed a slowdown in utility-scale clean energy investments.
‘We believe that commercial and industrial solar has become a bright spot for the Indonesian power investment sector, not just from a returns perspective but more importantly, from the climate impact perspective,’ Himawan said.