Renewable Energy: Southeast Asia

Renewable energy in Southeast Asia is a growing sector with a market size of $205 billion and capital investments 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, including a market breakdown, capital market analysis, and transaction analysis.

Renewable Energy in Southeast Asia: Market Breakdown

• Renewable energy in Southeast Asia is a $205 billion industry with a forecasted 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, highlighting the rapid development of renewable energy in the region.

Renewable Energy in Southeast Asia: Capital Market Analysis

• Renewable energy companies in Southeast Asia have received significant capital, totaling $10.69 billion since 2020 across 236 deals with an average deal size of $45 million.
• Capital deployed grew significantly through 2021 but slowed considerably in 2022 due to a combination of a lower deal count and a smaller average deal size.

• Mergers and acquisitions had the most significant capital investment in the renewable energy sector of about 46%, or $4.9 billion, since 2020, suggesting that considerable market consolidation is occurring within the industry.
• Capital investments of 24%, or about $2.6 billion, in other deal types, such as secondary transactions in the sector, further highlight the high level of consolidation in the market.
• Capital deployed in private equity transactions, $1.5 billion or 14% of all capital deployed, and venture capital transactions at 5%, or $535 million, showcases the fundraising opportunities for early-stage renewable energy companies and the growth potential of the sector.

• Singapore has the most significant capital investment in renewable energy companies, totaling 52%, or $6 billion, since 2020, signifying their commitment toward sustainability and net zero carbon emissions.
• The Philippines, as an emerging nation, has contributed 30%, or $3 billion, in the sector.
• Emerging nations, such as Malaysia, Thailand, Indonesia, and Laos, have additionally conducted notable investments over the same period. The investment highlights the desire for growth in the renewable energy sector from all countries in the region.

The Company

Sun Energy provides its clients with environmentally friendly solar panels. Moreover, the corporation supports its clients by offering financial, market development, and rental services for solar panels with the intent to change the world through renewable energy positively.

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, 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 the objective of sustainability and creating a positive change for a better world free of climate change. Many 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.