May Wong Channel NewsAsia 20 May 10;
SINGAPORE: Investments in the clean energy sector in Asia are likely to double this year - to up to US$70 billion.
In 2009, global investments in this sector hit US$145 billion and Asia accounted for one third of the investments.
So experts say prospects are bright, especially for Asia.
The winds of change are certainly blowing in the direction of countries like India and China when it comes to clean energy.
China is expected to pump in about 4 trillion yuan or US$585.8 billion to build up its renewable energy infrastructure over the next 10 years.
And experts say that will translate into investment opportunities.
"I think there's a green race that's on and you're absolutely right that Asia is recognising that there's a huge opportunity, a chance for Asia, Asian companies to be leaders in some of these renewable energy segments, said Abyd Karmali, MD, Global Head of Carbon Markets, Bank of America Merrill Lynch.
"As an example, in the Chinese solar sector, we've got four or five companies that are world leading that happens to be based in China, we've got one of the largest wind manufacturers that happens to be an Indian company. So there are big big opportunities," he added.
"Europe and the US have been pre-occupied for the last 12 months or so. Doesn't mean they're out of the race, but certainly they've been side-tracked for the time being," said Karmali.
As the renewable energy sector grows in Asia, observers believe that merger and acquisition activities will also grow.
Mr Karmali said, "As part of the drive towards creating these larger companies in the renewable space, there's going to be consolidations that take place."
Aside from relying on yet another sector now, in the form of clean energy, to boost a country's economic performance, experts say Southeast Asian countries will also stand to benefit through greater energy diversification, energy security and better interconnectedness such as shared gas pipelines among regional countries. - CNA/fa
