UK and Japan Back Vietnam's Green Energy Transition with Investment in Skye Renewables

British International Investment (BII), the UK's development finance institution, and Idemitsu Kosan (IKC), a leading Japanese energy company, have jointly invested in Skye Renewables, a Southeast Asia-focused renewable energy platform.

The partnership aims to accelerate greenfield solar development and decarbonization in the region.

This investment underscores the UK's commitment to supporting Vietnam's green energy transition, as emphasized by Sir Philip Barton, Permanent Under-Secretary at the Foreign, Commonwealth & Development Office (FCDO), during his visit to Hanoi.

Sir Barton highlighted the critical role of green finance in achieving both the UK's climate goals and empowering nations like Vietnam to embrace a low-carbon future.

British Ambassador to Vietnam, Iain Frew, echoed this sentiment, reaffirming the UK's dedication to assisting Vietnam in its just energy transition. "We are delighted that BII is joining forces with Idemitsu Kosan to combat climate change and promote sustainability in Southeast Asia," he stated.

This marks BII's first direct equity investment in Southeast Asia since its re-entry into the region in 2022. "Skye provides BII the opportunity to work with experienced partners like IKC to scale up this renewable energy platform," said Srini Nagarajan, Managing Director and Head of Asia at BII.

Hiroshi Yoshida, General Manager of Power & Renewables Business Department at IKC, welcomed BII as a new partner and expressed confidence in the potential for synergy and further growth of Skye as a key renewable energy platform in Southeast Asia.

Southeast Asia faces rising energy demand and a reliance on fossil fuels, creating significant opportunities for renewable energy expansion. Skye, established in 2022, develops solar projects and supplies off-grid clean energy to businesses in the region under long-term power purchase agreements.

The investment from BII and IKC aims to transform Skye into a major regional player with a solar capacity exceeding 300MW. This expansion is projected to avoid 270,000 tonnes of CO2e annually – equivalent to the emissions of over 47,000 homes.