Pentagreen Capital and British International Investment (BII) have jointly announced a US$80 million financing facility to support the development and construction of utility-scale solar and battery storage projects across South-East Asia, in partnership with renewable energy developer ib vogt Singapore Pte. Ltd.
The facility, known as the Development and Construction Facility, will initially back projects in the Philippines, Indonesia, and other eligible countries in the region. The investment aims to unlock approximately US$300 million worth of clean energy infrastructure, with a projected total capacity of around 260 megawatt peak (MWp) of solar power and 175 megawatt hours (MWh) of battery storage.
The first project under the facility is a 100 MWp solar power development in the Philippines. Mezzanine financing provided through the facility will help advance the project to the construction phase, complementing senior debt support from HSBC.
Pentagreen Capital, established in 2021 by HSBC and Temasek, focuses on sustainable infrastructure debt financing. BII, the UK’s development finance institution, is a key investor in climate and impact-led initiatives across emerging markets.
With electricity demand in South-East Asia forecast by the International Energy Agency to grow at 4% annually through to 2035, clean energy sources such as solar, wind, and geothermal are expected to meet over a third of that demand. However, achieving regional climate goals will require a fivefold increase in investment, reaching US$190 billion by 2035.
Battery storage systems, combined with utility-scale solar, are seen as essential to ensuring a stable and reliable energy supply, particularly for under-electrified and remote areas. The initial projects backed by the facility are projected to deliver around 400 gigawatt hours (GWh) of clean electricity annually, avoiding an estimated 257,000 tonnes of carbon dioxide emissions.
British High Commissioner to Singapore, Nikesh Mehta, remarked: “The UK is committed to mobilising capital and partnerships for a low-carbon future. Through BII, we are proud to support this clean energy initiative that will drive sustainable growth and unlock market opportunities in South-East Asia.”
Marat Zapparov, CEO of Pentagreen Capital, said: “This partnership with ib vogt and BII demonstrates how innovative financing mechanisms can unlock critical renewable energy investments in markets like Indonesia and the Philippines, where demand for clean power is rising.”
Rohit Anand, Regional Head for South-East Asia at BII, added: “This collaboration reflects our commitment to scaling climate finance and improving clean energy access in high-need regions.”
David Ludwig, CEO of ib vogt APAC, stated: “This facility is a vital step towards delivering our pipeline of solar and battery storage projects across the region. The energy transition in South-East Asia will increasingly rely on collaborative and creative financing models.”
ib vogt Singapore has also been recognised under the 2X Challenge for gender balance across its workforce, including senior leadership—a distinction that underscores its commitment to inclusive and sustainable growth.
