UOB’s U-Solar programme contributes to greenhouse gas savings across ASEAN equivalent to planting 1.3 million tree seedlings

Jakarta, Indonesia, 15 March 2021  – In just slightly more than a year since its launch in October 2019, UOB’s U-Solar programme has facilitated the generation of close to 160 gigawatt hours of solar power across ASEAN, reducing more than 77,200 tonnes CO2-equivalent (tCO2e) in greenhouse gas (GHG) emissions. This GHG emission reduction is equivalent to having close to 1.3 million new tree seedlings grow over 10 years or taking close to 17,000 cars off the road for one year.

U-Solar is Asia’s first solar industry ecosystem to power the development and adoption of renewable energy across Southeast Asia. Through U-Solar, available in Indonesia, Malaysia, Singapore and Thailand, the Bank offers businesses and consumers across Southeast Asia a suite of financial solutions to encourage the development and adoption of solar power. These solutions include providing cash management and green financing to solar project developers, as well as end-to-end contract-based financing solutions to engineering, procurement, construction and commissioning (EPCC) contractors.

UOB also offers zero per cent interest on instalment plans for home owners switching to solar power through tie-ups with local solar power service providers. Over the last few months, the Bank added three EPCC firms – PT Selaras Daya Utama (SEDAYU) in Indonesia, Pekat Solar Sdn Bhd in Malaysia and BECIS-Symbior in Thailand – to its network of U-Solar partners, bringing the total to 14 across the region . The expanded partner ecosystem enables the Bank to bring the benefits of U-Solar to more companies and consumers across ASEAN.

Frederick Chin, Head of Group Wholesale Banking and Markets, UOB, said, “The global pandemic has highlighted and accelerated the need for us all – countries, companies, communities and individuals – to do more to protect and to preserve our environment. As a leading financial institution in the region, UOB recognises the role we can play in contributing to economic and environmental well-being. Through initiatives such as U-Solar, Asia’s first solar industry ecosystem, we provide a platform that helps drive the development of the solar power industry and promotes the use of renewable energy. Together with our partners and customers, we will accelerate the region’s progress to a lower-carbon economy and forge a sustainable future for a better ASEAN.”

The U-Solar programme is part of the UOB Smart City Sustainable Finance Framework, which guides the Bank’s financing efforts to support the development of smart and sustainable cities across the region.

UOB Indonesia supports the government in building capacity to reach its renewable energy goal
As the largest country in ASEAN, Indonesia accounts for around 40 per cent of the region’s energy consumption and its demand for electricity continues to grow. As part of its sustainability agenda, Indonesia targets to achieve 23 per cent renewable energy use by 2025 and 31 per cent by 2050.

With the abundance of sunlight and increasing cost-competitiveness of solar photovoltaic (PV) technology in Indonesia, the government is committed to support the industry through a Presidential Regulation on Renewable Energy planned for issuance this year. The government will provide incentives to accelerate the development and adoption of solar power and other renewable energy.

Harapman Kasan, Wholesale Banking Director, UOB Indonesia, said the Bank’s U-Solar programme is aligned with the government’s focus on powering economic growth sustainably through solar power.

“We believe the Presidential Regulation on Renewable Energy will provide more conducive conditions for the advancement of Indonesia’s renewable energy sector, including the growth of the solar PV industry. Greater awareness of the benefits and efficiencies that solar power can generate, coupled with availability of better incentives, will also help to drive market acceptance and adoption.

“At UOB Indonesia, we are positive on the future of solar power in our region and the strong demand that will be generated from consumers and businesses. Our U-Solar programme, launched in end-2019, is showing good traction and we have a series of projects in our pipeline. We will continue to create public awareness on the benefits of solar power and to expand our local ecosystem partners beyond SEDAYU Energy and TML Energy,” Mr Kasan said.

Small- and medium-sized enterprises (SMEs) are also benefitting from the U-Solar programme as they strive to become more sustainable in their practices. One such SME is Charlotte’s Beauty Lounge.

Charlotha Katoppo, Owner of Charlotte’s Beauty Lounge, said, “As a small business owner in the beauty industry, incorporating sustainable energy into my business has become more and more essential each day. Not only does it effectively and efficiently secure the longevity of my business, it also ensures customer satisfaction with us being a part of this eco-friendly movement. Thanks to UOB’s U-Solar programme, we can contribute to a better and more sustainable world.”

For more information on U-Solar, please visit www.UOBgroup.com/U-Solar.