Consulting firm Rystad Energy said on May 27, 2020, renewable energy investments in the Asia-Pacific region will exceed oil and gas exploration spending.
The consulting firm said that by 2020, the region ’s total capital expenditure on renewable energy will exceed $ 30 billion, only more than investment in oil and gas exploration and production.
Reinstad said India, Australia, Japan, Vietnam and South Korea will be the main destinations for Asian investment.
The company focuses solely on China but did not include China in the assessment. China is the world’s largest investor in renewable energy and one of the major spenders of upstream oil and gas.
Investment into renewables is being supported by government policies such as solar and wind feed-in-tariffs across the region.
Gero Farruggio, head of renewable energy at Rystad, said: “It’s important that most (countries) have big goals that outline the integration of renewable energy into their respective energy structures and corresponding support policies.
Ristad said a big change in the renewable energy industry is that oil and gas professionals have become investors.
“It is feasible for professionals to become Australia’s leading renewable energy developer by 2020,” Farruggio said, adding that they are building there “to build a large utility energy storage, solar and … offshore wind energy portfolio”.
He said Malaysia’s state-owned oil company Petronas Malaysia and British and Dutch oil giant Royal Dutch Shell also “recently acted in India … in the renewable energy sector”.
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