Swedish investment supports energy transition in Southeast Asia

Development finance institution Swedfund commits 15 MUSD to SUSI Asia Energy Transition Fund, a fund that geographically reaches some of the least developed countries in Southeast Asia, investing in energy transition projects. By supporting the first close of the Fund, Swedfund is expected to play an important role in the mobilization of additional capital. The investment is in line with Swedfund’s Energy & Climate sector goals.

As is the case everywhere, there is uncertainty around the speed at which Southeast Asia will be able to recover from the pandemic recession and to what extent the region will be left with long-lasting economic and social effects. In addition, the general interest for investments in developing countries is expected to decrease during the pandemic. Nonetheless, the economic recovery paired with a growing population is expected to drive energy demand going forward, which the Fund is looking address through investments in renewable energy generation, energy efficiency and energy storage.

- Access to electricity and climate change mitigation are key in the fight against poverty. Through this investment we support the increased generation of renewable energy as well as increased energy efficiency and storage in some of the least developed countries in Southeast Asia. Through our investments, as a Development Finance Institution, we’re also enabling the mobilization of private capital, says Maria Håkansson, Swedfunds CEO.

This investment will support the build-out of renewable energy generation, as well as more efficient use of resources. Swedfund will contribute to climate change mitigation and improved standards of living due to access to affordable and reliable electricity.

SUSI Partners are currently managing EUR 1.6bn across six institutional funds dedicated to clean energy transition and achieving global carbon neutrality.