Equator Renewables Asia secures funding to advance clean energy infrastructure.
A new renewable energy developer founded by Singapore entrepreneur Frank Phuan has raised S$50 million (US$39 million) to support solar and green hydrogen projects in Indonesia, even as regional plans to export clean electricity to Singapore face regulatory hurdles.
The company, Equator Renewables Asia (ERA), was established last year by the former co-founder of Sunseap Group. The latest funding round includes strategic investments from Indonesian agribusiness firm KPN Corporation and Singapore-based shipping company Tsao Pao Chee (TPC).
KPN and TPC together contributed S$30 million (US$24 million), while the remaining S$20 million (US$16 million) is being provided by Phuan and ERA’s management team.
Phuan said the fundraising supports ERA’s broader mission to help both Singapore and Indonesia decarbonise while promoting the development of sustainable industrial zones (SIZ) across the Indonesian archipelago
RELEVANT SUSTAINABLE GOALS
Regulatory Headwinds Affect Cross-Border Solar Projects
ERA’s funding announcement comes at a time when several cross-border solar power projects linking Indonesia and Singapore have encountered delays.
According to reporting by The Straits Times, multiple Indonesian and multinational developers working on plans to export solar power from Batam to Singapore have struggled to secure financing.
The projects involve building large solar farms, battery storage facilities and subsea transmission cables, and were initially expected to begin delivering electricity by 2028.
Industry executives cited Indonesia’s regulatory requirement for permit renewals every five years as a key obstacle, complicating financing arrangements and potentially affecting project timelines.
Phuan said ERA’s projects are “progressing in parallel” with ongoing policy discussions between the Singapore and Indonesian governments aimed at finalising the regulatory framework for cross-border renewable energy trade, including the duration of export licences.
Solar and Hydrogen Pipeline Focused on Riau Islands
ERA’s development pipeline in Indonesia includes multiple solar projects with a combined capacity of 2.2 gigawatt-peak (GWp).
The portfolio also features 3.2 gigawatt-hours (GWh) of battery energy storage and initiatives related to green hydrogen development.
Phuan said the newly secured funding will be allocated between site development and early-stage preparation for utility-scale solar projects, as well as feasibility studies, pilot initiatives and infrastructure planning for hydrogen storage and transport.
The company has also obtained licence approval to reserve the Indonesian subsea space required for transmission cabling and is working with government agencies to clarify detailed requirements under the sustainable industrial zone framework.
Development Linked to Bilateral Cooperation
ERA’s projects are focused on Indonesia’s Riau archipelago, particularly a new sustainable industrial zone covering Batam, Bintan and Karimun.
The zone was established through a Memorandum of Understanding between Singapore and Indonesia last year, reflecting growing regional cooperation on clean energy development and industrial decarbonisation.
Phuan said project sites are expected to be distributed across several locations within the Riau Islands, including land controlled by KPN Corporation.
He noted that ERA is currently in early-stage discussions with KPN regarding site selection.
Navigating Policy and Market Transitions
The challenges facing cross-border renewable energy projects highlight the evolving nature of regional clean power markets.
As governments work to establish clearer rules for electricity exports and long-term investment frameworks, developers are balancing regulatory uncertainty with growing demand for low-carbon energy solutions.
ERA’s fundraising and project pipeline underscore continued investor interest in Indonesia’s renewable energy potential, even as policy discussions shape the future pace of cross-border power trading.
The coming years are expected to be critical in determining how regional cooperation, infrastructure investment and regulatory clarity will influence Southeast Asia’s transition toward cleaner energy systems.
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