Clime seeks $50m for Southeast Asia clean energy fund
Clime Capital, a newly established cleantech investor based in Singapore, has launched a clean energy fund for Southeast Asia targeting $50 million.
The fund, known as the South East Asia Clean Energy Facility (SEACEF), has raised an initial $10 million from groups including Sea Change Foundation International, Wellspring Climate Initiative, High Tide Foundation, Grantham Foundation, Bloomberg Philanthropies, Packard Foundation, and Children’s Investment Fund Foundation (CIFF).
SEACEF will make early-stage investments with a view to de-risking solar, wind, and energy storage for follow-on investments. It estimates that the portfolio could represent up to $2.5 billion in assets if follow-ons are forthcoming. In addition to pure energy plays, target companies will include adjacent low-carbon themes such as electric mobility, energy efficiency in buildings, and clean energy transmission infrastructure.
“Even in times of stability, the first 1-2% of development finance for clean energy projects is the hardest to find, given it carries the highest risk,” Mason Wallick, Clime’s managing director, said in a statement. “However, the opportunities for renewable energy investment remain significant, so this high-risk capital is a cornerstone at a time of great uncertainty, which can catalyze the significant funding required to turn proposals into major clean energy projects.”
There will be an initial focus on Vietnam, Indonesia and the Philippines, which have been identified as suffering from an early-stage funding gap in renewable power despite solar and onshore wind having become the cheapest sources of new-build generation. Private sector investors were singled out as unwilling to take early-stage risk on clean energy projects in Southeast Asia.
“The launch of this new fund comes at a critical moment, with the COVID-19 crisis shrinking traditional sources of finance, dedicated towards bending the curve of climate change,” Imraan Mohammed, head of impact investment at CIFF, added. “Impact investors and Foundations are stepping up to bridge the gap, catalyze other sources of funding and ensure the transition to clean energy in Southeast Asia continues to accelerate.”
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