Pentagreen Capital and BII Launch $80 Million Facility to Accelerate Renewable Energy in Southeast Asia

Pentagreen Capital and British International Investment (BII) have announced a joint financing initiative worth $80 million to accelerate the deployment of utility-scale solar and battery storage projects across Southeast Asia. The financing collaboration is in partnership with ib vogt Singapore Pte. Ltd., a leading international renewable energy development platform.

Pentagreen Capital, a sustainable infrastructure debt financing platform established by HSBC and Temasek in 2021, and BII, the UK’s development finance institution and impact investor, aim to enhance clean energy infrastructure through this initiative.

Expansion of Solar and Battery Storage Projects

The newly established Development and Construction Facility (the Facility) will finance solar, hybrid solar, and battery storage projects in the Philippines, Indonesia, and other eligible regions in Southeast Asia. The Facility is expected to unlock approximately $300 million in projects, delivering a combined 260 megawatt peak (MWp) of power generation capacity and 175 megawatt hours (MWh) of battery storage.

The first project to benefit from this initiative is a 100 MWp solar power project in the Philippines. The Facility will provide critical mezzanine financing, allowing the project to progress swiftly into construction, while also supporting the parallel deployment of senior debt financing from HSBC.

Renewable Energy Demand in Southeast Asia

According to the International Energy Agency (IEA), electricity demand in Southeast Asia is projected to grow at an annual rate of 4% until 2035. To meet climate goals, the region must increase clean energy investments to $190 billion by 2035—a fivefold increase from current levels. Renewable sources, including solar, wind, bioenergy, and geothermal, are expected to account for over one-third of the projected energy demand growth.

Utility-scale hybrid solar and battery storage solutions are seen as key to ensuring a stable and reliable supply of clean energy. Battery storage systems will enhance grid stability by ensuring power availability even during low-generation periods, such as at night or during adverse weather conditions. The initial projects supported by the Facility will supply an estimated 400 gigawatt hours (GWh) of clean electricity annually, preventing approximately 257,000 tonnes of CO2 emissions.

Industry Leaders Highlight Key Milestone

Nik Mehta, British High Commissioner to Singapore, emphasized the UK’s commitment to mobilizing capital for a low-carbon future, highlighting the initiative’s potential to drive sustainable growth, create jobs, and unlock new market opportunities in Southeast Asia.

Marat Zapparov, CEO of Pentagreen Capital, described the initiative as a landmark partnership that will help scale up clean energy investments in the region. He noted that Indonesia and the Philippines were identified as initial target markets due to their strong renewable energy potential and favorable regulatory environments.

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

David Ludwig, CEO of ib vogt APAC, highlighted the importance of innovative financing solutions, stating that the initiative will play a crucial role in unlocking the next phase of ib vogt’s growth in Southeast Asia.

Gender Inclusion and 2X Investment Recognition

ib vogt Singapore has also qualified as a 2X Investment in 2025 under the 2X Challenge, an initiative co-founded by BII to promote gender-balanced investment. This recognition acknowledges ib vogt’s commitment to gender diversity across its workforce, including senior leadership positions.

The partnership between Pentagreen, BII, and ib vogt represents a significant step in advancing Southeast Asia’s clean energy transition, demonstrating the growing role of innovative financing solutions in renewable energy development.