Indonesia's premier renewable energy company, Xurya, has secured a new investment of US$55 million to advance its operations. The funding round was spearheaded by the Norwegian Climate Investment Fund, managed by Norfund, with contributions from a range of prominent global institutions.
Leading the way in renewable energy
Since its founding in 2018, Xurya has distinguished itself as the first company in Indonesia to offer rooftop solar installations without upfront costs, significantly advancing solar adoption across the nation, especially in commercial and industrial sectors. With its innovative approaches, including the integration of IoT and machine learning in solar management, Xurya has positioned itself at the forefront of the renewable energy sector.
With the latest investment, Xurya's total funding has exceeded US$90 million. This round of funding is noteworthy as it marks the first direct investments from the Norwegian Climate Investment Fund and Swedfund, Sweden's Development Finance Institution, into Indonesia's renewable energy sphere. Additionally, this is the first equity investment by British International Investment in Indonesia under its current 2022-2026 investment strategy.
Enhancing global competitiveness through strategic investment
This influx of funds is set to further empower Xurya to refine its technological offerings and expand its market presence, aspiring to achieve global competitiveness in the near future. Eka Himawan, Managing Director at Xurya, stated, “With support from these world-class investors, we are not only going to continue producing innovations that will support a sustainable national energy transition, but we also aim to transform into a world-class company in the next few years.”
This investment is particularly significant considering Indonesia's susceptibility to the adverse effects of climate change. As the largest archipelago globally, Indonesia is uniquely positioned to benefit from the innovative energy solutions that Xurya provides. The Indonesian government is also committed to this cause, having set an ambitious target of achieving net-zero emissions by 2060, which includes a significant increase in renewable energy sources such as solar power in the national energy mix.
Global partners committed to sustainable impact
The funding partners have expressed their dedication to supporting Indonesia's transition to sustainable energy. Anders Blom, Senior Vice President of Renewable Energy at Norfund, remarked, “Norfund is thrilled to lead this investment round in Xurya, mobilising private and public capital into a company that is making vital contributions to the energy transition in Indonesia. The investment is a perfect fit with the mandate of the Climate Investment Fund of contributing to avoiding greenhouse gas emissions by investing in renewable energy in emerging markets.”
Gunilla Nilsson, Investment Director of Energy and Climate at Swedfund, said, “We are proud to partner with Xurya on our first direct investment in Indonesia's renewable energy sector. With a shared mission to combat climate change in a high emitting country, and a focus on measurable impact metrics, we look forward to actively contributing to sustainable impact for people and the environment alike.”
Mason Wallick, CEO at Clime Capital, noted, “We are proud to continue supporting Xurya following our initial investment in 2020 – our first investment after the launch of Clime Capital amid the COVID shutdown. This follow-on investment demonstrates the effectiveness of Clime Capital's early-stage risk capital model in scaling promising clean energy companies to accelerate their growth.”
Srini Nagarajan, Managing Director and Head of Asia at British International Investment, commented, “We are delighted to be supporting a company like Xurya, which is at the forefront of driving innovation in the commercial and industrial solar energy market in Indonesia. As the UK's DFI, this investment reflects our commitment to sustainable development to support and strengthen our partnership with Indonesia to achieve a greener and more resilient future, especially as we celebrate the 75th anniversary of diplomatic relations between the UK and Indonesia this year.”
Helen Wong, Managing Partner at AC Ventures, remarked, “The urgency to do something about climate change is clear, especially in Southeast Asia. Similarly, the investment opportunity has never been greater. We are proud to continue supporting Xurya as the largest player in Indonesia's commercial and industrial solar energy market.”
Eka added, “We are very grateful for the trust that has been given by the investors to us. The Indonesian Government's target to achieve net-zero emissions by 2060 is very ambitious, but we are certain that with gotong-royong (spirit of collaboration), we are going to achieve it. Xurya is ready to work with all stakeholders towards achieving this goal.”
Through its innovative solar rental model, Xurya has facilitated over 170 solar projects across Indonesia, effectively reducing carbon emissions by 152,000 tons annually and creating more than 1,600 green jobs. With this fresh injection of capital, the company aims to further mitigate up to 370,000 tons of CO2 emissions each year. Xurya's commitment to sustainability is further underscored by its active participation in the Indonesian Solar Energy Association and its role as a technical trainer and expert in numerous solar energy training programs.
