Closing The Gap Between Projects and Capital: Sarah Love on What Needs to Change

23 Feb 2026
Closing The Gap Between Projects and Capital: Sarah Love on What Needs to Change
Authors: Asia Clean Energy Partners
Authoring Organisation: ACE Partners - Asia Clean Energy Partners
Posted At: 02-2026

Southeast Asia’s transition is moving into a more practical phase: not just targets and announcements, but the work of making projects investable and preparing power grids to be ready to absorb more clean power. For the UK Foreign, Commonwealth & Development Office (FCDO), that means combining policy and technical assistance with development finance tools—and partnering with regional institutions to help move capital into real-world projects. 

In this conversation, Peter du Pont of SIPET Connect speaks with Sarah Love, who leads FCDO’s Climate, Energy and Nature Network in Southeast Asia. Sarah shares her views on a few areas where she is seeing traction: growing momentum behind the ASEAN Power Grid, the role of blended finance platforms like FAST-P, and why project preparation and coordination still matter as much as concessional funding. 

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SIPET Connect: To start, could you briefly describe what FCDO is doing in Southeast Asia on climate, energy and nature, and your role within this work? 

Sarah: FCDO is the UK’s foreign ministry, and it also leads on international development. So our mandate is about advancing UK interests overseas—and that includes our development work as well as our climate, energy and nature priorities. The Foreign Secretary sees climate and nature as central to our foreign policy objectives. We won’t be prosperous or secure without action on climate change, and that conviction underpins much of what we do across the region. 

In terms of priorities, our work spans three or four broad themes. Energy transition is one. Nature and nature-based solutions, particularly mobilizing finance for nature, are another. Then there’s adaptation and resilience, and finally, expanding access to sustainable finance. 

My role is to lead our climate, energy, and nature network in Southeast Asia. I manage a small team of experts based in Singapore and Indonesia, covering areas such as energy, industrial decarbonisation, green finance, carbon markets, nature, and marine biodiversity. We work closely with UK embassies and high commissions across Southeast Asia, alongside climate-focused colleagues in those posts, to deliver on these priorities with partners across the region.  

 

SIPET Connect:  If we zoom in on energy, could you share a couple of partnerships or initiatives you’ve been involved in, or are watching closely, that you think have been particularly effective in moving the needle on the energy transition in Southeast Asia? 

Sarah: On energy transition, our focus is really on scaling renewables, using our development finance instruments and technical assistance programmes to support that, and to mobilise private finance into the transition. 

But I also think grids and interconnectors are critical enablers. A lot of development partners are looking at the ASEAN Power Grid and how to get behind that initiative. The idea of extending and connecting the grid across the region has been around for a long time, since at least the early 1990s, but it genuinely feels like there’s real momentum behind it now. 

We’re doing a lot with the ASEAN Centre for Energy and with ADB to explore how we can mobilize UK expertise in support of that. The UK has a long track record of electricity trading with our neighbours, and deep expertise, particularly on the regulatory side. So, a key question is: how do you design the regulatory environment for the power grid in a way that incentivizes private investment into big, complex interconnector projects? 

We’ve been working with ADB on the design of a financing facility that could attract other partners and mobilize private capital. We’re also supporting a few front-runner projects—for example, working with ADB to support Sarawak Energy as it explores potential regional connections, including interest in a Singapore–Sarawak interconnector. 

Another example is FAST-P, where we’re working closely with Singapore. Last year, we committed £60 million to FAST-P through British International Investment (BII), the UK’s development finance institution1. FAST-P is Singapore’s blended finance facility, and BII invested in the pillar focused on marginally bankable projects, where catalytic and blended finance can help bring in more commercial investors. 

 

SIPET Connect: Staying with ASEAN Power Grid, why do you think the momentum has picked up so much in the past few years? 

Sarah: It’s a good question. There are a few angles. 

Electricity trading with neighbours can be beneficial for energy security. It gives you more options, and we’ve seen that in the UK. It can also help with affordability, because being able to buy cheaper electricity from neighbours can bring costs down. And from a climate perspective, grids are important for enabling more renewables to be integrated into the delivery of electricity. 

There’s also a demand-and-supply story across ASEAN. Some countries have more available clean energy resources, and others have higher demand. Singapore is a good example, so interconnection helps. 

And I do think the prioritization of the APG by the ASEAN Secretariat and ASEAN leaders has mattered. Having successive ASEAN chairs pick this up—Malaysia, the Philippines this year, and then Singapore looking ahead—creates continuity. This is long-term; it needs sustained political commitment. But you can see movement: a pipeline of interconnectors is being developed, land-based and subsea, for some of the more complex connections are moving through pre-feasibility and feasibility work. 

 

SIPET Connect: Can you explain a bit more, especially how partners are coordinating around APG projects? 

Sarah: Coordination and information sharing are a big part of it, because the space is fragmented. 

ADB has set up the Partnership for ASEAN Connectivity on Energy (or PACE), which is focused on the ASEAN Power Grid. It brings together a wide range of partners, including donors, MDBs, DFIs, commercial finance partners, and others, to look at specific projects and work through what’s needed to move them forward, The PACE platform helps to clarify who’s funding what, where support is available, and how to link efforts up more effectively. This kind of platform matters when the scale of the challenge is so big. We need to work together to use resources efficiently. 

 

SIPET Connect: There’s a lot of debate and discussion about blended finance. Many people say it’s promising, but it also is clearly slower than we need and appears to be hard to scale up. From your perspective, what needs to change to mobilise the amount of private capital that the energy transition requires in Southeast Asia? 

Sarah: I think the challenge is that there are lots of project ideas out there, and in theory there’s commercial capital looking for projects, but there’s a big gap in the middle where they’re not matching up. 

Concessional finance helps bring projects closer to commercial bankability. In Southeast Asia we’re still learning what works best, what structures are attractive to commercial partners, and what needs to be demonstrated. 

For me, it goes back to the full project development pipeline. It starts with the enabling environment, regulations and policy frameworks that make investment possible. Then you need support for project preparation, because there’s a real gap before you even get to concessional finance: the preparatory work to get projects ready for investors. 

And then you have early-stage finance, growth finance, and eventually commercial finance and public markets. From the UK side, we have instruments that target different stages. BII sits somewhere in the middle, but we also work through multi-donor platforms like PIDG (with tools like InfraCo and other facilities), as well as UK Export Finance, and initiatives like Mobilist, which operates in the public markets space, supporting companies that are close to listing but need a bit more support to get there. 

So, I agree, projects aren’t moving through the pipeline as quickly as we’d like. But there isn’t a single fix. It’s about putting support in place at multiple stages, across the whole project lifecycle. 

 

SIPET Connect: You touched on knowledge and coordination platforms earlier. What role do you think knowledge platforms like SIPET can play, especially as programmes evolve or end? 

Sarah: I completely agree there’s a need for strong knowledge platforms. 

SIPET’s project mapping work, understanding who is doing what across the region, is really valuable. The more we know about what others are doing, the easier it is to align efforts, collaborate, and draw out best practice, and also to understand where things haven’t worked, which is equally useful. 

Good, accessible data on policy changes, enabling environment challenges, investment trends, and examples of what’s going well can help build momentum. There’s also a role for sharing learning from initiatives like FAST-P, how these platforms are set up, what challenges they face, so it’s simpler for the next person trying to do something similar. 

Peer-to-peer learning matters too: connecting regulators and practitioners, and bringing in expertise, including private sector expertise, whether that’s on the ASEAN Power Grid, storage, or other parts of the transition. The UK’s transition away from coal over the last decade has been steep, and there are lessons there as well. 

 

SIPET Connect: Before we wrap, when you look ahead a few years, what would “success” look like for FCDO’s climate and energy work in Southeast Asia? 

Sarah: For me, success looks like accelerated deployment of renewables, real action on the ground at scale, and clear progress on the ASEAN Power Grid, particularly seeing some of the ambitious front-runner interconnector projects move forward. 

Then there’s mobilizing finance. This means seeing concessional instruments catalyze more commercial capital, with investors feeling more confident about backing climate-focused, nature-positive projects. 

And finally, stronger regional cooperation, donors, MDBs and others finding ways to work together more effectively. In the current climate, that’s what we all need to do. 

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1. https://www.bii.co.uk/en/news-insight/news/british-international-investment-commits-60-million-to-green-investment-partnership-to-close-the-climate-finance-funding-gap-in-south-east-asia/