Malaysian Renewable Energy Developer, Ditrolic Energy Secures Investment Backing from BlackRock’s Climate Finance Partnership

Malaysian Renewable Energy Developer, Ditrolic Energy Secures Investment Backing from BlackRock’s Climate Finance Partnership

Partnership expected to develop and build 1GW+ scalable solar portfolio, increasing Ditrolic Energy’s targeted total capacity to 5GW+ across Malaysia, Bangladesh, Indonesia and the Philippines.
Kuala Lumpur, 31 January 2024 – Ditrolic Energy Holdings Sdn. Bhd. (“Ditrolic Energy”) has entered into an agreement with global asset management company BlackRock’s Climate Finance Partnership1 (“CFP”), its flagship public-private finance vehicle, to back Ditrolic Energy’s expansion to build commercial and industrial (C&I) and utility-scale solar assets throughout emerging markets in Asia Pacific.
Founded in 2009, Ditrolic Energy is one of the largest renewable energy developers in Malaysia and Southeast Asia and runs a fully-integrated value chain from project development, financing, engineering and construction through to operations and maintenance (O&M) and asset management. To date, Ditrolic Energy is operating, constructing more than 450MW of solar assets in Malaysia, other Southeast Asia countries, Bangladesh and China. With CFP’s partnership, Ditrolic Energy takes position as one of the leading pure-play energy transition companies in the country.

CFP is a unique partnership among BlackRock and the governments of France (AfD), Germany (KFW) and Japan (JBIC) through their respective development finance institutions, as well as leading US impact organizations. CFP brings together public, private and philanthropic sectors to mobilize significant blended capital into climate infrastructure, targeting investment in non-OECD countries across Asia, Latin America and Africa.
The partnership seeks to facilitate realization of Ditrolic Energy’s targeted 1 GW+ pipeline of solar projects, increasing Ditrolic Energy’s targeted total capacity to 5GW+ pipeline of solar projects in Malaysia, Bangladesh, Indonesia and the Philippines, as well as investment and expansion of its flagship 360° Clean Energy Solution, EnerLoop, by enabling technology for Carbon Tracking, Battery Energy Storage System and Green Electricity Sales.
With this new partnership, Ditrolic Energy intends to make Malaysia its investment hub to actively invest into key energy transition projects around its approved markets in the Asia Pacific region including Malaysia’s National Energy Transition Roadmap (“NETR”) programme where Ditrolic Energy plans to mobilise significant amounts of capital private investment with the aim to accelerate and reduce the associated cost of energy transition for the country.  

Tham Chee Aun, Founder and Group CEO of Ditrolic Energy, said: We are committed to playing a key role in Asia’s energy transition. We are grateful for BlackRock’s support, because the investment in Ditrolic Energy enables us to rapidly increase scale and maximise value to support transition to low carbon economies throughout multiple markets. With the capital raised and private investment to be mobilised, Ditrolic Energy would be in a prime position to undertake key energy transition projects in Malaysia and other Southeast Asia countries.”

Valerie Speth, APAC Co-Head of Climate Infrastructure, BlackRock, said: “Ditrolic Energy holds a proven solar development track record in this diverse region. Our partnership presents an attractive opportunity to mobilise more capital into climate infrastructure in emerging markets and accelerate national ambitions to achieve net zero economies.”

Asia Pacific accounts for 40% of the world’s carbon emissions. Countries including Malaysia, Bangladesh, Indonesia and the Philippines have strong power market fundamentals and increasingly pro-renewable regulatory regimes. The partnership announced today aims to bring about more development, as well as construction of greenfield renewables capacity to support growth in emerging markets:
  • Malaysia’s renewable energy generation goal stands at 31% by 2025 and 70% by 2050 under the new National Energy Transition Roadmap (NETR), with an intention to achieve net zero emissions by 2050. The nation’s domestic oil and gas reserves are expected to be depleted by 2029, driving up importation of fossil fuels for power generation, while raising electricity tariffs. 
  • Bangladesh is expected to reach 30% renewable generation capacity by 2030 and is pivoting towards gas, LNG and renewables, with the aim of generating an additional 2.7GW of renewable energy. This could contribute to about 10% of the new-build pipeline on a capacity basis. 
  • Indonesia plans to achieve 23% of renewables in its electricity mix by 2025, and at least 31% by 2050, according to its Electric Supply Business Plan.
  • The Philippines is aiming for 3.6GW of capacity allocated to commercial operation in both 2024 and 2025, rising to 4.4GW in 2026.
BlackRock’s Climate Finance Partnership secured US$673 million in commitments from a global consortium of investors including governments, philanthropies, and institutional investors in an oversubscribed final fundraise, exceeding the initial target of US$500 million. BlackRock currently manages over US$50 billion of infrastructure client AUM is comprised of infrastructure equity, debt and solutions, and has grown both organically and inorganically since inception in 20112.

Photo: Dr. Valerie Speth, BlackRock’s APAC Co-Head of Climate Infrastructure (second from left) with Ditrolic Energy Founder & Group CEO, Tham Chee Aun (second from right), Isabella Pacheco, BlackRock’s Director of Climate Infrastructure (left) and Ditrolic Energy Executive Director, Michelle Ong.

Photo: A large-scale solar project undertaken by Ditrolic Energy in Malaysia.
About Ditrolic Energy Holdings
Ditrolic Energy is one of the largest Southeast Asian integrated clean energy companies, delivering total clean utilities primarily based on solar energy to various industries including airport, educational institution, healthcare, manufacturing and more. We understand that a sustainable future demands a diverse range of energy transition solutions, hence, we embark on a journey to expand our offerings and prepare our clients in achieving comprehensive energy independence and their net-zero carbon goals.

About BlackRock Private Markets
BlackRock’s private markets platform serves investors seeking outperformance in infrastructure, private debt, private equity, real estate and multi-alternatives solutions. We strive to bring our investors the highest quality opportunities by drawing upon our global footprint, superior execution capabilities, proprietary technology and position as a preferred partner. As of December 31, 2023, BlackRock manages US$327 billion in liquid and illiquid alternative investments and commitments on behalf of clients worldwide.
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Media Contacts:
Akiko Chen (Malaysia)
1CFP employs a unique blended finance structure with a total of US$130m in catalytic capital raised from the Governments of France, through the French Development Agency (AFD); Germany, through KfW Development Bank (kfW); and Japan, through Japan Bank for International Cooperation (JBIC); together with the Grantham Environmental Trust, the Quadrivium Foundation, and another private foundation committed a combined US$112.5 million in catalytic capital. This catalytic capital is being used to mobilize a broader institutional capital raise, starting with commitments from Dai-ichi Life Insurance, a leading European pension fund, and a key strategic banking partner, Standard Chartered Bank, as well as MUFG Bank, which together are the first institutional investors in CFP.  
2Source: BlackRock,  December 2023