Singapore’s Armstrong Asset Management announced on Monday it was investing up to US$30 million from its South-East Asia Clean Energy Fund to finance an initial pipeline of solar photovoltaic and biogas power projects developed by Bangkok-based Annex Power in Thailand, the Philippines and Indonesia.
Armstrong managing partner Andrew Affleck said Annex offered "internationally proven engineering and construction capability, which has been field-tested with matched components and robust, reliable operations." Annex’s commitment to the development of projects of the type and scale suitable for the Armstrong fund made it an attractive partner, Affleck added.
Focused on the clean energy sector in Southeast Asias emerging markets, Armstrong invests in small-scale infrastructure projects and reports that it is on track to achieve a target final closing of US$150 million by next month.
The company said Annex had achieved impressive results in the Thai solar market and was strengthening its leading position with a strong pipeline of large-scale engineering, procurement and construction (EPC) projects. Annex has completed the engineering and construction of 58 MW of solar PV projects in Thailand and has secured contracts to construct a further 30 MW.
Annex managing director Daniel Gaefke said, We are delighted to be expanding on our strong relationship with the Armstrong Fund whose investment objectives align very well with our own and whose experience in the renewables sector and in Southeast Asia creates many synergies we plan to build on.
The Armstrong investment will allow Annex to further grow its development and asset management operations from its core EPC and consulting businesses in Thailand and the expanding project opportunities in Indonesia and the Philippines, the companies said.
In May, Armstrong announced the first investment from its fund, a strategic cooperation with energy developer Symbior Solar Siam, a solar focused subsidiary of Hong Kong-based Symbior Energy, to develop and operate a portfolio of solar power generation projects in central and northeast Thailand. The portfolio of six small-scale solar power plants will deliver a combined capacity of 30 MW to the Thai national grid.
Thailands renewable energy market is the most established in Southeast Asia, with a target of 25% of total energy to come from renewable sources by 2021. The Thai solar sector is growing steadily, with recent approvals confirming an increase of the solar power target to 3 GW and the increasing presence of leading international equipment suppliers and service providers.
Armstrongs investors include private corporations, European development finance institutions, such as GEEREF and DEG, as well as the International Finance Corporation, the private sector investment arm of the World Bank.