The investment potential in solar and offshore wind in Asia will represent an expected US$1.1 trillion by 2050, generating 873 gigawatts (GW) of clean energy, according to research published by the Institute for Energy Economics and Financial Analysis (IEEFA). The report focused on seven markets – Japan, South Korea, Malaysia, Taiwan, Vietnam, Indonesia and the Philippines – estimating that, by 2050, projected plans to install 634 GW of capacity will require US$394 billion in investment – including US$346 billion for local supply chains. Meanwhile, offshore wind in the region represents a US$621 billion investment opportunity, with goals to deliver 239 GW of capacity. “The report highlights the here-and-now opportunity to capitalise on the renewable energy supply chain,” said Grant Hauber, IEEFA’s Strategic Energy Finance Advisor, Asia. “Solar energy offers immediate investment benefits to the Asia-Pacific, while the advantages of participating in the offshore wind supply chain will develop over the next several years.” There is also between US$72-97 billion of investment opportunity in offshore wind installation and service vessels in the maritime sector, the report noted. “A key message for policymakers and industrialists is that you do not need to make solar [photovoltaic] modules or wind turbines to realise huge domestic manufacturing and investment benefits,” said Hauber.
