Renewables investment to overtake oil and gas spending in APAC

Investment in renewable energy in the Asia-Pacific (APAC) region is set to overtake spending on oil and gas exploration by 2020, according to a new report by consultancy Rystad Energy.

Total capital expenditure in renewables will rise above US$30 billion by 2020, with India, Australia, Vietnam and South Korea the leading destinations for investment.

“These countries each have strong pipelines for renewable energy developments of all types, including offshore wind,” said Gero Farruggio, head of renewables at Rystad.

“And, importantly, most have large targets outlining the inclusion of renewable power sources within their respective energy mixes, with corresponding support policies.”

Rystad’s analysis did not include China, a world leading investor in renewables and also one of the leading spenders in upstream oil and gas.

The consultancy went on to suggest that in the near future, oil and gas majors will increase their investments in the renewables industry as the global transition to low carbon energy mounts speed.

“By 2020 it is feasible that the majors will be the dominant renewable developers in Australia as they pursue ‘oil and gas’ scale opportunities. Commercial drivers are increasing the desire to ride the solar-coaster,” said Farruggio.