Cleantech investment opportunities not just in China/India, but across SE Asia

Posted on May 11, 2011 by

China and India are leaders in Asia’s cleantech sector. There are also good opportunities in rest of the region including Indonesia, Thailand, Malaysia, Singapore and Vietnam.

The growth forecasts both in terms of energy demand and market size are encouraging the investors to look at the region seriously. South and southeast Asia (minus China) are slated to grow at 6.4 percent  CAGR in the coming decade. Rapid industrial development, migration to urban centers and rise in quality of life reflect in the project energy demand growth by 76 percent in ASEAN region itself by 2030.

Andrew Newman, finance director of clean energy investment manager Low Carbon Investor’s Asian-focused fund said at a investor event in London “We are looking at the less fashionable markets which are badly under-served by private equity and venture capital.  Access to energy is critical to drive economic growth yet insufficient installed capacity leads to rolling blackouts, which highlights the significant opportunity for small-scale distributed generation.”. Low Carbon Accelerator Asia aims to invest $150 million in projects across small-scale solar and wind, WTE, energy efficiency in India, Indonesia, Malaysia, Singapore, Thailand and Vietnam.

Referring to the growth demonstrated by China in the last decade, Vivek Tandon of Aloe Private Equity said “They no longer see China as a developing market and push more towards south east Asia and Africa.”  Aloe’s invests in clean energy, waste recycling and clean manufacturing. It has already invested in a number of opportunities in Asia. There is a serious intent to increase the depth of presence in these markets from Aloe.

Referring to the fact that ADB committed $60 million  in China and India 2009-2010, but could not replicate this in south east Asia which was investible, ADB investment officer Johanna Klein said that “The challenge is that it is on a different scale to doing a VC fund in a single country because there are more countries. Maybe we have one more generation of funds to go before it can start. But we are seeing good models of funds which will start to grow in south east Asia.”

Read about India’s cleantech growth in “India joins the top 10 as the global CleanTech investement at $243 billion in 2010” and China’s renewable investments in “China – Carbon strategies, targets and market” and “China – Renewables and Coal Power – Impact on Carbon Emissions

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Posted in: Renewable Energy