Regional energy leaders redefine what bankable means amidst shifting financing realities

Shifting markets demand adaptability as Asia balances expansion, transition, and capital access.

Leaders in Asia’s energy sector have examined the challenges of project bankability, the evolving risk appetite amongst financiers, and the urgent need to mobilise private capital for an expanding regional energy landscape.

Speaking at the Asian Power Summit 2025 in Singapore, Achal Sondhi, chief investment officer at Aquila Clean Energy Asia Pacific, opened the conversation by challenging traditional notions of what makes a project “bankable.”

“Most people say it has to have a PPA, which is as long as possible, hopefully longer than any of our careers,” he said. “It has to be a project financing that can be non-recourse… and all the permits must be in place. Once all of that’s there, your project’s bankable.”

But, he warned, those days are gone. “I will tell you now, if you find one of those in Asia, hold on to it. Don’t tell anyone you have it. It’s a unicorn. It doesn’t exist anymore.”

He pointed to structural shifts even in mature markets like Australia, where developers face sudden grid connection changes late in the process.

To navigate such uncertainty, he urged developers to bring all stakeholders—banks, EPCs, and financiers—along the project journey.

“If they don’t see it, they don’t know the risks that you’re going through… You’d rather be hit with a wall of sticks, which you can eventually break down, than a brick wall,” said Sondhi.

From Indonesia’s perspective, Jonny Karli, chief financial officer of PT. Barito Wahana Lestari, said the most pressing challenge is the limited depth of financing available for transitional energy projects.

“The biggest challenges that we see are the lack of, or the limited depth and breadth of financing available in Indonesia and around the region—especially for the not-so-pure renewable side of the business,” Karli said.

“We would love to see a wider adoption of capital markets types of instruments, like bonds, and more subordinated types of financing available,” he added.

Karli underscored the sheer scale of Indonesia’s energy ambitions.

“Indonesia plans to add 69.5 gigawatts of additional capacity over the next 10 years, which is going to cost $180b to develop… There’s going to be competing forces with regard to who gets priority,” he said.

Whilst international banks are retreating, local institutions are stepping up. However, he acknowledged that transition finance mechanisms remain slow to move beyond the pilot stage.

Across the region, Daniel Ruppert, chief investment officer of Solarvest Holdings Berhad, argued that Southeast Asia’s story is not one of “energy transition” but of “energy expansion.”

“Southeast Asia is more about energy expansion,” he said. “We are not stopping gas, there’s no way we can stop that, and probably not even coal in some countries.”

He noted that whilst financing exists, the true constraint lies in policy. Malaysia, he said, is a rare bright spot.

By contrast, he said, Vietnam continues to face regulatory uncertainty. “The policies are clear and executable within 2–3 years [in Malaysia]… That’s fantastic. It doesn’t get better than that.”

Both Sondhi and Ruppert emphasised the need for flexibility in financing.

Sondhi described a project “taken merchant into construction” in a market with risk-averse banks and an inexperienced EPC. The key, he said, was patience and collaboration: “You take the bank along the journey… You take the EPC along the journey… and you combine the two. It could be a 6–9 month process, but it works.”

Despite the varying market realities, all three leaders agreed on one point: adaptability is the new foundation of success. Whether managing volatile PPAs, bringing financiers along the risk curve, or balancing transitional fuels with renewable ambitions, Asia’s energy leaders are redefining what “bankable” means in a changing world.