Renewable Energy


Two of the most compelling reasons for investing in the energy sector are its GDP generative potential and its importance to societal welfare. Because of this, it is likely to remain a high-priority sector for Governments and therefore continue to benefit from favourable energy policies, soft regulation and provide simple, secure cashflow generation (often with state-supported offtake agreements).

 


Further, a return to more regular market dynamics should see continued upward pressure on the long-run-marginal-cost of generating electricity and hence, wholesale electricity tariffs.  We believe that given the current market directions that our investment weighting is less towards consumer discretionary asset classes and more toward those with stable and secure cashflow generation.

AsiaRenewables is of the view that renewable energy assets provide greater investment upside than other generation types, primarily because of their positive leverage to the rising long-run-marginal-cost of generating electricity with no dependence on oil, natural gas or coal reserves and no inherent carbon liability. Even under ‘pre-global recession’ fuel and carbon prices, various renewable energy types were nearing economic parity with conventional power.  Longer term economic, social and environmental returns from renewable energy asset classes further reinforce the attraction of these investments.

 

 

We are well experienced on geothermal, biomass, wind, and solar in the different regions of Asia and are interested to explore such opportunities.