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Asia energy investment needs reach $1 trillion annually
Asia may require up to $1 trillion in annual energy investment over the next 15 years to bolster energy security and meet rising demand, according to a report from McKinsey. This projected requirement reflects a need for $15 trillion in total investment through 2040.
Regional energy demand is forecasted to reach 370 million terajoules by 2040, a 15% increase over previous estimates. This growth is driven by industrial expansion, the construction of data centers, and increased cooling requirements. Asia is expected to account for approximately 70% of global net energy demand growth through 2040.
While renewable energy deployment is expected to accelerate—with annual solar and wind investment potentially reaching $300 billion through 2040—challenges remain. A separate report noted that 50% to 60% of renewable projects in Vietnam, Thailand, and Indonesia were canceled or stalled between 2021 and 2025 due to policy and infrastructure issues.
Regarding fossil fuels, coal demand in Asia is expected to remain broadly flat over the next decade, as growth in India and Southeast Asia offsets declining consumption in China. Natural gas demand growth is projected to slow for the next five to ten years, though industrial demand may drive a longer-term recovery.
Entities
Asia · Bain & Company · McKinsey · McKinsey & Company · Standard Chartered · Strait of Hormuz
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Between 2021 and 2025, 50% to 60% of renewable projects in Vietnam, Thailand, and Indonesia were canceled or stalled. oilprice.com
- [● 2 SOURCES] Asia's energy demand is forecasted to reach 370 million terajoules by 2040. esgnews.com · oilprice.com
- [○ 1 SOURCE] Biofuels could displace between $90 billion and $100 billion in fuel imports by 2040. oilprice.com
- [● 3 SOURCES] Growth in coal consumption in India and Southeast Asia is expected to offset falling demand in China. esgnews.com · www.tokenpost.com · oilprice.com
- [● 3 SOURCES] Coal demand in Asia is expected to remain broadly flat over the next decade. esgnews.com · www.tokenpost.com · oilprice.com
- [● 3 SOURCES] Annual solar and wind investment could reach approximately $300 billion through 2040. esgnews.com · www.tokenpost.com · oilprice.com
- [● 3 SOURCES] Natural gas demand growth is expected to slow over the next five to ten years. esgnews.com · oilprice.com · www.tokenpost.com
- [● 4 SOURCES] Asia may need up to $1 trillion in annual energy investment over the next 15 years. esgnews.com · www.tokenpost.com · oilprice.com · www.nuovogiornalenazionale.com
- [● 3 SOURCES] Asia is expected to generate about 70% of global net energy demand growth through 2040. esgnews.com · www.tokenpost.com · oilprice.com