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Market Chatter: Singapore Diplomat Expects Large-Scale Investment Imminent in Renewables

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Singapore's chief climate diplomat Ravi Menon expects fresh, large-scale investment in the renewables sector, with concerns related to energy security and supply chain expected to boost demand and revenue, Bloomberg reported Tuesday.

The rising worldwide demand for clean energy industry inputs is expected to result in an increase in prices in the future, unless the industry capacity manages to catch up, Menon told Bloomberg News.

Considering the expectations of rise in demand and prices, investment by institutional investors and hedge funds must have already made its way into the sector, said Menon, who served as the chief of the Monetary Authority of Singapore for over 12 years before retiring in 2024.

The ongoing energy supply crisis resulting from the Iran war has led to a surge in demand for renewables, with countries heavily reliant on fossil fuels eyeing energy independence, the report said. Countries like South Korea and the Philippines are looking to speed up such projects, it added.

A longer-term shift back to coal, a strategy adopted by several Asian countries including India to combat power shortages, could however dent the progress of renewables, Menon said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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