British International Investment (BII), the UK’s development finance institution and impact investor, has announced the launch of Sustainable Asia Renewable Assets (SARA), a new renewable energy platform. SARA has been jointly formed alongside Dutch development bank FMO and European investment manager SUSI Partners.
BII and FMO are investing $70 million and $50 million respectively through co-investment commitments to SARA and top-up commitments to the SUSI Asia Energy Transition Fund (SAETF). Complemented by further commitments to SAETF from existing and new investors, SUSI has more than doubled the size of its Southeast Asia (SEA)-focused strategy from $120 million to $259 million, including direct co-investments.
The initial focus of the platform will be on getting greenfield projects into construction and operation. There are also plans for SARA to develop its own proprietary pipeline of projects across SEA to create a scalable and independent renewable power platform. The Dam Nai wind farm in Vietnam (pictured), which SUSI acquired in October 2024, will become SARA’s cornerstone asset.
Countries such as Indonesia and Vietnam have committed to achieve net-zero emissions by 2060, while the Philippines have set a goal of 75% reduction in CO2 emissions by 2030, meaning there is an increasing focus on transitioning to renewable energy sources.
Due to SEA’s growing position as a global manufacturing and industry hub, the region is projected to account for more than a quarter of global energy demand growth until 2035, according to the International Energy Agency (IEA). Around 80% of SEA’s rise in energy demand has been met by fossil fuels since 2010, the climate impact per dollar invested in the region’s energy transition is among the highest globally, according to the BII.
With a presence in Singapore since 2019, Zurich-headquartered SUSI has been an early mover in the SEA energy transition. After closing SAETF in 2023 at $120 million, the fund was reopened in 2024 based on strong deal flow and demand from LPs.
SAETF’s portfolio focuses on utility-scale renewable energy projects as well as distributed generation and energy efficiency projects with commercial and industrial customers across emerging SEA markets. To date, the fund has invested in Vietnam, the Philippines, Thailand, and Cambodia.
Srini Nagarajan, managing director and head of Asia at BII, said in a media release: “SEA’s evolving clean energy sector offers significant potential for climate investments. Development finance institutions like ours can play a pivotal role in this transition. We are delighted to partner with SUSI and FMO to launch a new utility-scale platform in the region and to increase our support for SAETF, which was BII’s first investment in the region under our current strategy between 2022 and 2026.”
Peter Byrde, FMO’s private equity director, added, “Through this investment, SARA will be able to provide clean energy to countries in SE Asia that have a clear need for additional power while diversifying their energy matrix. At FMO, we are committed to a net-zero portfolio by 2050, striving towards a 1.5ºC pathway alignment at both a portfolio and investment level.”
Byrde added: “As this transaction not only allows us to invest in various attractive markets, but also enables us to maximise our impact due to this being a fully green transaction, this is a clear opportunity aligned with our PE energy strategy. We look forward to supporting these late-stage development projects across the region.”
