SOUTH-EAST ASIA (Reuters): Asia may need to invest as much as $1 trillion annually in energy over the next 15 years, according to a McKinsey report released, as countries seek to strengthen energy security after the Iran war disrupted oil and gas flows through the Strait of Hormuz.
Here are the key findings:
* McKinsey raised its forecast for Asia's energy demand to 370 million terajoules in 2040, 15% higher than its forecast from a year ago
* Asia is expected to drive about 70% of global net energy demand growth through 2040
* New sources of energy demand include data centres, while requirements from cooling and industrial activities are also rising
* Coal is expected to remain a part of Asia's energy mix for longer than previously anticipated, with regional demand seen staying broadly flat over the next decade as declining consumption in China is offset by growth in India and Southeast Asia
* Gas demand is set to slow down in the next 5-10 years as countries prioritise coal and renewables for power generation. However, gas consumption could rebound in the longer term driven by industrials
* Renewables continue to accelerate, particularly in India and Southeast Asia, with about $300 billion in annual solar and wind investment expected through 2040
* Focus on energy security could enable the development of higher-cost upstream assets with government support in China, the Philippines, Thailand, Vietnam, and Turkmenistan
* Biofuels could replace about $90 billion to $100 billion in fuel imports in 2040, creating the potential for a longer-term reduction in import dependence
(Reporting by Florence Tan; editing by Shri Navaratnam) - Reuters
