Renewable Energy: Southeast Asia

Renewable energy in the Southeast Asia region is a growing sector with a market size of $205 billion and capital invested totaling $11 billion between 2020 and 2022. The region is committed to renewable energy and integrating sustainable practices into legacy industries.

This report provides an overview of the renewable energy market in the Southeast Asia region between 2020 and 2022, including a market breakdown, capital market analysis, and a transaction analysis.

Renewable Energy in Southeast Asia: Market Breakdown

  • Renewable energy in Southeast Asia is a $205 billion industry with a compound annual growth rate (CAGR) of 7% between 2022 and 2027.
  • Southeast Asia has invested $2.7 billion into the renewable energy sector, with a deal count of 60 in 2022 alone. This investment highlights the rapid development of renewable energy in the region.
  • Hydropower is the largest sector in renewable energy, with a global market size of $372 billion and a CAGR of 5% between 2022 and 2030.

Renewable Energy in Southeast Asia: Capital Market Analysis

  • Renewable energy companies in Southeast Asia have received a significant amount of capital, totaling $10.69 billion since 2020 across 236 deals with an average deal size of $45 million.
  • Capital deployed in 2022 Q1 was 258% higher than capital deployed in 2021 Q1, suggesting that investments to companies in renewable energy are increasing. However, larger transactions occurred in Q3 of 2021 than Q3 of 2022.
  • Mergers and acquisitions are shown to have the largest capital invested in the renewable energy sector of about 46%, or $4.9 billion, since 2020. This data suggests that considerable market consolidation is occurring within the Southeast Asia renewable energy sector. Moreover, the largest deal between companies in the sector could have occurred.
  • Capital investments of 24%, or about $2.6 billion, in other deal types, such secondary transactions in the sector indicates the high level of consolidation in the market.
  • Private equity at 14%, or $1.5 billion, and venture capital at 5%, or $535 million, suggests the diverse number of deal types making the market so vast.
  • Singapore has the largest capital investment in the renewable energy companies, totaling 52%, or $6 billion, since 2020. This signifies their commitment toward sustainability and net zero carbon emissions.
  • The Philippines is an emerging nation but has contributed 30%, or $3 billion, in the sector. This indicates a notably large investment into the sector.
  • Malaysia, Thailand, Indonesia, and Laos are emerging nations but have still made significant investments into renewable energy companies, highlighting the desire for sector growth.

The Company

Sun Energy focuses on providing the best quality solar panels that are environmentally friendly to their clients. Moreover, the corporation provides support to their clients by offering financial, market development, and rental services for solar panels with the intent to positively change the world through the provision of renewable energy.

Most Recent Financing Status

  • Sun Energy raised $25 million of Series A venture funding in a deal on November 22, 2021.
  • The round was led by PT Delta Dunia Makmur and TBS Energy Utama.
  • The funding will enable the company to develop more solar PV projects and cement its market position in Indonesia and bolster further growth in the Asia-Pacific region.
Southeast Asia’s renewable energy sector is filled with firms that work together with an objective of sustainability and creating a positive change for a better world free of climate change. A wide range of countries in Southeast Asia, including emerging nations, have proven to be committed to sustainability through investments placed into renewable energy, demonstrating their desire for this sector to grow.

Sources: Pitchbook Data, Inc.