Solar power to get 'lion’s share' of funding in next 5 years

Over 58% agreed the sector will attract the bulk of investments in Asia.

The “lion’s share” of investments in Asia’s energy industry will likely flow towards the solar power sector, as cited by 58.5% of industry professionals in a Black & Veatch report.

In its 2022 Asia Electric Report that polled 57 senior electric industry professionals, Black & Veatch found that the majority sees solar energy will get “much more investment than today” over the next five years.

Energy storage will likewise attract funding with 48.1% of the respondents agreeing it will get much more, whilst 37% said it will get “somewhat more investment than today.”

Microgrids and other distributed energy sources are also a strong contender with 50.9% expecting it will get “somewhat more” funding.

“It is almost certain that there is a significant overlap here with solar-powered DER projects incorporating battery storage,” Harry Harji, Associate Vice President for Black & Veatch’s management consulting business in Asia, said.

In contrast, coal emerged as the “big loser” as coal-fired projects are projected to see “much less investment than today” over the same period, according to 59.3% of the respondents.

Citing 2020 data, Harji said 18% expected coal investment to increase, but this dropped to just 4% in 2021.

“Emblematic of this change and the trend for investors driving decarbonization is an initiative coordinated by the Asia Investor Group on Climate Change,” he said.

“A group of 13 institutional investors—including the asset management arms of BlackRock, JP Morgan, Fidelity, BNP Paribas, and Sumitomo Mitsui Financial Group—announced plans to engage with five Asian coal-burning utilities to urge greenhouse gas emissions reductions and climate-risk accountability.”