The Singapore-based Southeast Asia Clean Energy Facility (SEACEF), a climate fund managed by Clime Capital Management, has committed development funding to Indonesian company Synergy Energy Solutions (SES), representing the fund’s first investment in the sector.
The investment will support the capability of SES to implement shared savings energy efficiency projects in Indonesia. The company designs and implements energy efficiency solutions for commercial and industrial customers, helping Indonesian businesses achieve significant cost savings through high-value energy savings opportunities.
Achieving the energy transition in Indonesia will not be possible without scaling up energy efficiency pioneers like SES, SEACEF says. Based on current energy usage trends, without investment in energy efficiency, Indonesia’s heavily fossil fuel-reliant energy demand will double by 2035.
For Indonesia’s national power utility, PLN, demand growth from commercial and industrial consumers is significant: sales to commercial and industrial customers accounted for half of PLN’s electricity sales in 2019.
The SEACEF investment in SES includes the participation of co-investor New Energy Nexus Indonesia through its Indonesia 1 Fund, which is focusing on supporting early-stage renewable energy startups and companies in Indonesia. SES is also a participant in New Energy Nexus Indonesia’s Smart Energy Incubation and Acceleration programme.
“SEACEF’s investment provides pivotal support to SES as we build on our success as a leading energy efficiency services provider,” says Steven Piro, CEO at SES. “By re-engineering existing systems and installing modern, proven technologies, we empower businesses to optimize their operations. We are excited to empower Indonesian businesses to save money while also minimizing their carbon footprint.”
In addition to the SES investment, SEACEF has closed five investments in Indonesia, Vietnam and the Philippines since the fund’s launch in June 2020.
According to a SEACEF and Clime Capital report, US$14 billion of early-stage development capital is required to unlock over US$500 billion of clean energy projects and businesses in Vietnam, Indonesia and the Philippines.