Equis invests $200m in Thai solar assets

The investment constitutes the first deal from the pan-Asia-focused investor's maiden vehicle, which amassed $386 million in commitments last month en route to its $500 million target.

According to sources cited by Infrastructure Investor, around $50 million of the $200 million transaction value was equity, and the seller is thought to have been a local developer.

Equis focuses on sectors where there is a prevalence of private sector participation, and where the sector itself is undergoing some form of positive economic transformation as opposed to simply reacting to an imbalance of demand over supply. By the end of 2012, the fund hopes to reach its hard cap of $750 million.

There is no denying that Southeast Asia is becoming a significant energy consumer on the back of strong economic growth. Since 1990, energy demand in the region has doubled and is expected to grow by another 76% by 2030. To accommodate these needs against a backdrop of high oil prices and concerns on fossil fuel combustion, governments have pushed for expansion of the renewable energy sector.

Hydro, geothermal, biomass and biogas are currently the most popular segments, but if plans drawn up by the region's governments are strictly followed, the market share of solar energy will increase substantially to 12% by 2030 from its current negligible levels.

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• Topics
• Southeast Asia
• Cleantech
• Infrastructure
• Thailand
• Cleantech
• Infrastructure