Project detail - SUSI ASIA ENERGY TRANSITION FUND SC

SUSI ASIA ENERGY TRANSITION FUND SC

Back to map

Who is our client

SUSI Southeast Asia Energy Transition Fund (SAETF) is a private equity fund that will invest in renewable energy and energy efficiency solutions in Southeast Asia. The fund has a target size of 250MM and is managed by SUSI Partners (SUSI), a Swiss fund manager with a strong track record focused on energy transition investments in Europe and global OECD markets. SAETF is SUSI’s first emerging markets fund and will be anchored by four DFIs, including two other European DFIs.

Funding objective

SAETF plans to make majority/controlling investments in energy transition infrastructure assets and companies. The portfolio will contain a balance of investments in energy efficiency, microgrids, commercial & industrial (C&I) energy solutions, and energy storage, alongside utility scale renewable energy generation projects. The fund will invest in developers, platforms, and joint ventures that may hold a mix of construction and/or operational assets alongside a pipeline of development stage assets.

Why we fund this project

Off-grid energy generation, storage, and energy efficiency are important and under-deployed infrastructure elements that are core to the green energy transition in markets like Southeast Asia where energy demand continues to grow rapidly. The economics for microgrid, C&I, and (hybrid) storage in Southeast Asia are favorable for investment and impact given the opportunity to supplement unreliable grids, displace diesel generation, electrify dispersed populations, and provide cleaner power to industrial players. By investing in SAETF, FMO seeks to address the market need for energy transition infrastructure in Southeast Asia at a time when investment has decreased due to the economic shock of COVID-19.

Environmental and social rationale

The investment scope of the fund includes activities with limited environmental & social (‘E&S’) risks and activities with potentially higher E&S risks. Although it is expected that most of the investments by the fund will entail limited E&S risks, we have classified the E&S risk of our intended investment in the fund as Private Equity Fund category A (‘PEF-A’), to reflect the potential of higher E&S risk opportunities being considered for investment. The fund manager will screen the environmental and social (‘E&S’) management and performance of investment opportunities and monitor this performance once the investment is made, using the IFC Performance Standards, following procedures and using expertise that fit the E&S risk level of each investment. To this end the fund manager has already adopted an environmental and social management system (‘ESMS’), which includes concrete procedures and guidance on the integration of E&S requirements in due diligence, investment decision, legal agreements and performance monitoring. Also, the fund manager is hiring the services of a dedicated E&S expert, and an in-house dedicated E&S manager will be hired over time. An E&S advisory panel - in which the E&S specialists of the investors in the fund will be represented, as well as the E&S manager of the fund - will be established to evaluate the E&S performance of the fund and to give advice. All recommended improvements will be formalized in an Environmental & Social Action Plan (ESAP).

Region
Asia
Country
Asia
Sector
Energy
Signing date
5/25/2021
Total FMO financing
USD 20.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A