SUSI Partners, through its Asia Energy Transition Fund (SAETF), has joined forces with Singapore-based microgrid technology provider Canopy Power to bring clean power solutions to off-grid locations across Southeast Asia.
It is SUSI’s second investment in Southeast Asia following the creation of a joint venture with Malaysian company InvestEnergy which is dedicated to financing and operating energy efficiency measures in the region.
Under the agreement with Canopy Power, SAETF will fund microgrid projects combining solar photovoltaics with battery storage and energy management technology to replace emissions- intensive diesel generators in locations underserved by or disconnected from utility grids.
Canopy Power will contribute their engineering, procurement, and construction expertise to deliver the projects to customers across the tourism, agriculture, mining and fishery industries, among others, and to serve remote communities.
Microgrids not only provide a clean energy solution to end customers otherwise reliant on more polluting alternatives, they also enhance the security of supply and lower energy costs due to continuously decreasing prices for solar and battery storage systems, SUSI said.
This is especially important in areas that do not allow for centralised grid access, which is an issue that is pervasive across Southeast Asia, a region which encompasses thousands of islands and otherwise remote areas.
Decentralised technologies are therefore expected to play a crucial role in decarbonising Southeast Asia’s energy system while reaching the goal of extending electricity access to a wider and strongly growing population.
SUSI Partners, for SAETF, targets sustainable energy infrastructure investments across Southeast Asia.
For its first closing in late May 2021, SAETF received capital commitments 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.