Schneider Electric said yesterday that it is committing at least $16 million over the next four years to incubate and develop up to four Singapore-based companies with global growth potential.

The investment is part of the energy and automation digital solutions provider's global innovation programme, which includes incubations, investments and partnerships.

The company has signed a memorandum of understanding with the Economic Development Board to create the new programme, which will focus on creating new business ventures, increasing innovation, and helping companies with strong global potential and the ability to scale.

The Venture Building Programme will target new ventures in areas such as climate change solutions and helping the transition to renewable energy sources.

It will also look at new technologies such as the Internet of Things, 5G, artificial intelligence and robotics, in order to address growing markets like distributed energy resources, energy-as-a-service, electromobility, energy storage, and efficient heating, ventilation and cooling.

"We are excited about this partnership to build new companies in Singapore," said Schneider Electric chief innovation officer Emmanuel Lagarrigue.

"Singapore is a hub for innovation and we look forward to working with talented entrepreneurs to build new technology and business models."