BlackRock's Speth Unveils Opportunity in Energy, Renewables
Jul 10, 2023
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Valerie Speth from BlackRock discusses investment opportunities in renewable energy in Asia-Pacific. Topics include emerging sectors in Asia, challenges, inflation impact on investments, and financing high-quality energy assets in countries like the Philippines and Vietnam.
Renewable energy in Asia offers $4.7 trillion investment potential with risks like lack of support and high costs.
Infrastructure investments remain stable with inflation protection and financing optimization attracting investors even in tightening interest rate environments.
Deep dives
Opportunities in Renewable Energy Sectors in Asia-Pacific Region
Investments in the Asia Pacific renewable sector have reached over $187 billion with BlackRock playing a significant role, surpassing $9 trillion in assets. Dr. Valerie Speth, with extensive experience in the renewable power sector, highlights the vast opportunities in the region, indicating $4.7 trillion as the latest investment potential. Noteworthy benefits include risk mitigation, infrastructure impact, and job opportunities, with significant investments in climate infrastructure across various Asian countries.
Challenges and Strategies for Renewable Projects in Southeast Asia
Scaling renewable projects in Southeast Asia poses challenges due to higher setup costs, lack of strong government support, and unfamiliar risks. Successful projects necessitate local networks, experienced developers, and international standards compliance. Strategies for de-risking involve operational excellence, local partnerships, and financing optimizations to attract investment in renewable energy projects.
Impact of Inflation and Interest Rates on Infrastructure Investments
Infrastructure investments provide stable income and inflation protection, proving resilient across economic cycles. Despite current inflation concerns, infrastructure assets remain attractive due to long-term contracted income streams. Financing high-quality assets remains robust even in tightening interest rate environments, emphasizing the importance of evaluating project pipelines and risk management in maintaining project viability.
Valerie Speth, Asia-Pacific Co-Head for the Climate Infrastructure Group at BlackRock, discusses BlackRock's views and outlook on power and energy, and renewables.
The 15-year veteran of renewables markets in Europe and the Asia-Pacific region - in a very candid chat with Infralogic Global Executive Editor Robin Ganguly - speaks of the most promising sectors and opportunities - especially in emerging Asia - the biggest challenges and the inflationary environment and its impact on infrastructure investment.