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Singapore IM's climate fund makes first investment

The Southeast Asia Clean Energy Facility has put an undisclosed amount in Indonesian renewable energy startup PT Xurya Daya Indonesia. Citywire Asia Singapore-headquartered Clime Capital’s climate fund has made its first investment, the firm announced Monday. The Southeast Asia Clean Energy Facility (SEACEF) – which closed in June with $10m in initial investments – has put an undisclosed amount in Indonesian renewable energy startup PT Xurya Daya Indonesia. Managing director Mason Wallick declined to value the investment. But he told Citywire Asia it was ‘intended to provide Xurya with sufficient capital to make significant strides in their development’. Xurya aims to make solar energy widely used in Indonesia, by initiating and completing rooftop solar leasing projects. The investment will support its growth, and the completion of an 80 megawatt-peak pipeline for commercial and industrial customers in Indonesia. Clime Capital described Indonesia’s rooftop solar opportunity as ‘massive’ and exceeding 200,000 megawatts of potential capacity. However, less than 150 megawatts have been installed across the country, despite the lower cost of solar system components, the firm said. ‘SEACEF sees an opportunity to provide critical funding to support achieving the sizeable commercial and industrial rollout, and scale needed to achieve economies of scale and widespread adoption in Indonesia. ‘The investment comes at a crucial time for the market, when investors and developers are pulling back from renewable energy development as a result of the Covid-19 economic slowdown,’ it added. Eka Himawan, managing director at Xurya, similarly observed a slowdown in utility-scale clean energy investments. ‘We believe that commercial and industrial solar has become a bright spot for the Indonesian power investment sector, not just from a returns perspective but more importantly, from the climate impact perspective,’ Himawan said. Opportunities ahead Clime Capital’s fund has an initial focus on Indonesia, Vietnam and the Philippines. Wallick said it is currently exploring several catalytic investments in early-stage projects and companies, in the countries.

Talks revolve around the deployment of technologies ‘including solar, wind and storage, plus supportive business models including energy efficiency that will materially accelerate the low carbon transition. ‘Through investments like Xurya, we aim to support local developers in achieving the essential scale to help Southeast Asia achieve a green recovery from the Covid-19 crisis,’ Wallick added. The fund will also be seeking a broader support base. Its current backers include international climate foundations Sea Change Foundation International, Wellspring Climate Initiative and High Tide Foundation. In the days ahead, it will target family offices, high-net-worth individuals and philanthropic providers in the Asia Pacific region. It will also seek the support of European governments, according to Wallick. Clime Capital’s investments team has an on-the-ground presence in Indonesia, Vietnam, the Philippines and Singapore.

It holds a capital markets services licence for venture capital fund management in the city-state, that only permits it to serve qualified investors. Climate-focused funds have been in the news. In March, Lombard Odier Investment Managers launched a climate transition strategy for Singapore high-net-worth investors, that will invest in 40-50 stocks globally. Meanwhile, Nuveen announced the first close of its global impact strategy raising $150m in July. Nuveen’s fund supports two sustainable development challenges – inclusive growth and resource efficiency – with a 40:60% allocation to each theme in the form of private equity investments in growth-stage companies.


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