The project finance landscape in Asia-Pacific continued to be dominated by renewable energy and data centre projects. 

Based on a review of the market by The Asset board of editors for the Triple A Sustainable Infrastructure Awards 2025, Australia and India remained the most attractive for renewables with battery, solar and hybrid types of projects being the favoured asset classes. Australia witnessed a proliferation of battery energy storage system ( BESS ) projects, which bankers attributed to a decline in battery prices on the back of lower prices of critical battery metals such as lithium, cobalt, and nickel.

The A$650 million ( US$416.67 million ) project financing for Akasya Energy was among the standout BESS projects in Australia in 2024, being the largest standalone BESS financing deal globally to date. The proceeds were used for the construction of a four-hour-long duration, 415MW/1,660 Orana BESS. It features Australia’s largest virtual toll offtake agreement plus an element of merchant revenues.

Akasya is the single largest investment of BlackRock Climate Infrastructure. It is one of Australia’s fastest growing pure-play BESS developers and owners. It has a pipeline of 1.5GW/4GWh of assets under construction in the country, including the 850MW Waratah Super BESS in New South Wales, one of the largest committed battery storage assets globally.

Solar and wind projects also remain attractive for sponsors investing in Australia’s renewable energy market. Metis Energy, a renewable energy platform based in Singapore, achieved financial close in March 2024 for a A$110 million financing, which was used for the development of the 111MWdc Gunsynd solar farm in Queensland. This is the company’s first investment in Australia and its second investment globally. The project is capable of producing 250GWh of energy annually – equivalent to reducing about 150,000 tonnes of carbon dioxide emissions and powering up to 32,000 households in Queensland each year. This transaction will serve as a cornerstone to Metis as it expands its renewable energy portfolio in Australia.

Bright Energy Investment is expanding its Warradarge wind farm in the Midwest region of Western Australia after obtaining a A$287 million project financing. The company is adding 30 wind turbine generators to the existing 51-turbine wind farm, which will provide an additional 108MW of capacity to the Southwest interconnected system.

Hybrid types of projects also continue to resonate in Australia’s renewable energy market. Neoen of France, one of the world’s leading renewable energy producers, concluded a A$1.1 billion project financing in February 2024 to fund a renewable energy portfolio. The debt financing involved a diversified 1.5GW portfolio of eight wind, solar and battery storage assets held by Neoen. The portfolio of operating assets incorporates three solar farms and four wind farms as well as a new asset, the Collie Battery Stage 1, which will be funded through the debt facility. This will be Neoen’s first major project in Western Australia and its first four-hour-long duration battery globally.

In Australia, Neoen has been active for over a decade and has over 4GW of renewable energy assets in operation or under construction, making it one of the most significant energy generators in the country. The company intends to reach 10GW of renewables capacity in Australia by 2030

The financing package provided Neoen with further flexibility to grow its Australian platform in the future. The company has been active for over a decade and has over 4GW of renewable energy assets in operation or under construction, making it one of the most significant energy generators in the country. The company intends to reach 10GW of renewables capacity in Australia by 2030.

In one of the largest financings for a renewable energy and storage portfolio in Australia, Fotowatio Renewable Venture ( FRV ), a leading developer of sustainable energy solutions, and Canadian infrastructure fund Omers concluded a A$1.2 billion portfolio financing in July 2024. The portfolio includes 1GW of solar and BESS assets. The financing is characterized by a pipeline that contains in-development of over 10 BESS projects that are viewed as critical to Australia’s energy transition targets.

The funds raised allow for the refinancing of about A$880 million debt at individual asset-level, with the remainder dedicated to the financing of the assets under construction. The transaction attracted significant interest from the financing market due to the portfolio’s highly contracted levels of revenue and the established nature of solar assets, which are all operating.

India, meanwhile, attracted several solar power projects with ReNew Private Limited developing three projects with a total capacity of 1,275MW in the state of Rajasthan alone in 2024. In May, the company secured a 35.28 billion yen ( U$241.60 million ) project financing for the development of a greenfield 600MW utility-scale solar power. This transaction is notable for being the first of ReNew’s internationally financed deals to fully utilize its own domestically produced solar modules from its new state-of-the-art 4GW module manufacturing facility in Rajasthan. This further deepens ReNew’s vertical integration across India’s renewables industry and reinforces its position as a central player within the market.

India aims to become a global leader in the production of solar modules. The government has mandated approved local solar modules for use in projects and introduced incentives linked to domestic solar manufacturing.

In February, the company secured a 10.35 billion rupee ( US$120.90 million ) loan syndication to develop a 300MWac/410MWdc solar power project with the output to be sold to the Solar Energy Commission of India ( SECI ). In December, ReNew borrowed 12.4 billion rupees to finance the development of another 375MWac solar power plant, with the output also to be sold to SECI.

Meanwhile, foreign banks have enhanced their local currency capability in India to take advantage of the scale of the Indian market opportunity and the fluctuating competitiveness of hard-currency ECB ( external commercial borrowing ) loans. Indian rupee financing is done on a floating-rate basis and so the banks also structured their loans in a similar fashion to mitigate the interest rate risk of the cash flow variability.

Another significant solar power project in India involved the 750MW capacity plants by the sponsors Adani Green Energy and TotalEnergies Singapore located in Gujarat and Rajasthan. Funded through a US$400 million debt, this landmark transaction represents the largest merchant power portfolio project financing deal in India. Of the total output capacity, 500MW will be sold to SECI and the remaining 250MW in the merchant market. With confidence in the evolving merchant energy market, the sponsors are diversifying their revenue streams and improving the internal rate of return ( IRR ), while balancing the risk considerations of the lenders. The deal structure featured mitigants to ensure the merchant exposure is bankable.

Blueleaf Energy monetizes the environmental attributes of the power generated from the project through the sale of international renewable energy certificates at a long-term fixed-price contract, while simultaneously selling the physical power in the merchant market with a secured floor price

One defining theme of the Indian renewables market is innovation. Blueleaf Energy’s first greenfield project in India – which combines 116MW of wind capacity and 184MWp of solar capacity – features an innovative offtake structure. Described as the first of its kind in the Indian market, the project involves monetizing the environmental attributes of the power generated from the project through the sale of international renewable energy certificates at a long-term fixed-price contract, while simultaneously selling the physical power in the merchant market with a secured floor price.

The floor price for energy and fixed price for environment attributes guarantee the project a firm tariff over the long term while allowing it to benefit from merchant market upsides. The structure offers the project an opportunity to further optimize its revenue as the markets and technologies evolve.

In another unique transaction, Avaada Energy secured a 38.55 billion rupee term loan to implement a decentralized agri-solar photovoltaic ( PV ) project totalling 1,132MWac in the state of Maharashtra. The project involves the implementation of the so-called PM KUSUM scheme, a government initiative aimed at providing solar power to farmers in India, thus reducing their reliance on diesel and providing cheaper power for irrigation. The scheme is expected to offset about 32 million tonnes of carbon dioxide per annum.

Elsewhere in the region, renewable energy projects are still the main staples of infrastructure financing. The Greater Changhua 4 Offshore Wind Farm in Taiwan was among the headline transactions in 2024 with its US$1.6 billion financing. Dubbed as Project Trinity, the 583MW offshore wind farm is the last in the batch of offshore wind projects awarded under the Round 2 tender conducted by the Ministry of Economic Affairs ( MoEA ).

The project represents the largest wind farm investment by a local life insurance company in Taiwan – Cathay Life Insurance Company – following its acquisition of a 50% stake in the project from the sponsor, Orsted. The project is backed by a 100% offtake contract under a 20-year corporate power purchase agreement with Taiwan Semiconductor Manufacturing Company. It is also the first offshore wind financing guaranteed by Taiwan’s National Credit Guarantee Administration as an export credit agency.

Also in Taiwan, Aster Renewable Energy Taiwan, which is 100% owned by KKR Asia Pacific Infrastructure Fund, concluded a NT$8.13 billion ( US$269.20 million ) financing in April 2024 for the development and construction of a 149MW floating solar PV plant and 20MW/78MWh BESS. About 30% of the electricity generated will be reserved for small and medium enterprises ( SMEs ) under the SME green power procurement programme launched by the MoEA, which aims to facilitate SME access to renewable energy and, therefore, accelerate energy transition in Taiwan. The remaining 70% will be sold to either state-owned Taiwan Power or other commercial and industrial users.

In the Aster Renewable Energy Taiwan project, about 30% of the electricity generated will be reserved for SMEs, while the remaining 70% will be sold to either state-owned Taiwan Power or other commercial and industrial users

Singapore also saw interesting renewable energy projects such as that of Terrenus Energy, which secured a S$300 million ( US$230.80 million ) green loan to fund the installation of PV panels on some 1,200 public housing blocks and 57 government sites, as well as commercial and industrial facilities. The project represents one of the largest renewable energy deployments in Singapore to date. The rooftop solar projects with a combined capacity of 300MWp can potentially offset about 150,000 tonnes of carbon emissions compared to traditional energy generation methods. The revenues for the project, also known as SolarNova 6 rooftop solar, are primarily underpinned by two virtual power purchase agreements with the offtakers to meet their sustainability requirements through the use of locally generated renewable power and ownership of renewable energy certificates.

In the first of its kind in the Singapore market, Rexus Bioenergy obtained a S$60.5 million project financing, the proceeds of which were used to finance a pioneering biomass energy plant that uses woodchip as feedstock. The 13.2MW, 324 tonnes per day waste-to-energy project is a significant step in the National Environment Agency’s circular waste valorization strategy, reducing carbon emissions by utilizing wood waste as an energy source.

Other notable renewable energy projects in the region included those of PT Nusantara Sembcorp Solar Energi, whose US$52 million project financing was used to fund the inaugural IKN solar power plant and BESS project in Indonesia’s new capital city of Nusantara in East Kalimantan. The project is expected to generate up to 93GWh of clean energy annually for Nusantara and the East Kalimantan province and is capable of reducing 104,864 tonnes of carbon dioxide emissions annually.

In the Philippines, Buskowitz Solar, a pioneer in rooftop solar and provider of integrated solar PV services, signed a US$12 million loan deal with the Asian Development Bank ( ADB ) in April 2024 to finance the development, construction and operation of multiple solar panel systems on the rooftops of commercial and industrial buildings across several provinces in the country. A total of 70MW of solar power generation capacity will be installed to generate 88GWh of clean electricity annually and reduce carbon dioxide emissions by approximately 54,000 tonnes. In addition to the ADB loan, the financing package included a US$24 million parallel loan from the Philippine National Bank.

In Thailand, ADB helped arrange a US$957.35 million financing for Gulf Renewable Energy Company, which was earmarked for the construction and bridge financing of a portfolio of 12 renewable energy projects in the country, including the first large-scale solar and BESS initiative in Southeast Asia. The portfolio also includes 393MW of ground-mounted solar comprising eight projects and 256MW of ground-mounted solar paired with a 396MWh BESS consisting of four projects. The integration of BESS with solar power will help address grid stability, facilitating the increased use of renewable energy and supporting the decarbonization of the power sector in Thailand.

Another sector that continued to command attention among sponsors and lenders in the region is data centres. When it comes to this asset class, Malaysia is among the most favoured locations, specifically the state of Johor. AirTrunk Singapore Six Pte Ltd secured a S$530 million sustainability-linked loan ( SLL ), the proceeds of which were used to fund the development of a data centre in Johor called JHB1, and to provide growth capex ( capital expenditure ) for AirTrunk’s group portfolio assets. The data centre offers an initial capacity of 50MW with the potential to expand it to 150MW.

The five-year SLL facility included a number of sustainable innovations, including AirTrunk’s liquid cooling technology, as well as a solar-ready roof, equipped to add 5MW of solar panels. The ownership of AirTrunk changed hands in 2024 with the consortium of Blackstone and Canadian Pension Plan Investment Board acquiring the data centre platform from Macquarie Asset Management and Public Sector Pension Investment Board in a A$24 billion transaction.

The five-year SLL facility included a number of sustainable innovations, including AirTrunk’s liquid cooling technology, as well as a solar-ready roof, equipped to add 5MW of solar panels

Princeton Digital Group is also developing another data centre in Johor funded by 1.28 billion ringgit ( US$297.70 million ) of syndicated green term financing and working capital facilities. The first phase of the project, with a total capacity of 52MW, is part of Princeton Digital’s planned US$1.5 billion 150MW hyperscale campus, which will be one of the largest AI ( artificial intelligence )-ready campuses in Asia. The project is designed to cater to the infrastructure demand of some of the world’s most pre-eminent AI and tech companies. The financing featured a bespoke security arrangement for the debt facilities with multiple counterparties.

In another deal involving AirTrunk as sponsor, Andante Finance Company signed a five-year A$1.07 billion senior secured facility, with the proceeds used to provide growth capex for AirTrunk’s group portfolio assets. The financing will help AirTrunk meet the demand for advanced and scalable digital infrastructure to support services for remote work platforms, video streaming, social media, gaming, and AI.

In India, Adani Enterprises and EdgeConnex Asia II Pte Ltd are developing a data centre portfolio across Hyderabad and Pune, after obtaining a US$875 million SLL – representing the largest SLL data centre project financing in India. The transaction features an innovative structure that provides for margin adjustments once key performance indicators, including power usage effectiveness, renewable energy usage, and safety goals, are met. The financing has an accordion feature that allows for the extension of the initial commitment up to US$1.44 billion.

Amid the proliferation of renewable and data centre projects in the Asia-Pacific region in 2024, another significant deal in the infrastructure space was the rehabilitation of the Ninoy Aquino International Airport ( NAIA ), the main gateway for travellers in the Philippines. The airport gained global notoriety when it suffered a power outage on New Year’s Day in 2023, causing significant flight delays and diversions that affected thousands of passengers.

Adopting a PPP approach, the Philippine government conducted a bidding process to rehabilitate the airport and awarded the contract to New NAIA Infra Corporation, a consortium comprising San Miguel Holdings Corporation, RMM Asian Logistics, RLW Aviation Development and Incheon International Airport Corporation. The project would entail a total investment of 170 billion pesos ( US$3.05 billion ), including a term loan of 80 billion pesos and 36.2 billion pesos in equity. The rehabilitation also aims to improve the airport's runway, which will benefit not only passenger traffic but also the flow of goods. The Philippine government is projected to generate significant revenues from the project based on the sponsors’ winning bid of 82.16% of NAIA’s revenue, which translates to almost one trillion pesos over the 25-year concession period.

For the complete list of best deals in North Asia, please click here.

For the complete list of best deals in Asean, please click here.

For the complete list of best deals in South Asia, please click here.

For the complete list of best deals in Oceania, please click here.

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