The infrastructure investment firm, Infratil, has announced an investment of $233 million to establish a renewable energy development business, Gurīn Energy. The new business will center around the development of greenfield renewable projects spanning across Asia, including North Asia, India and Southeast Asia. The venture will be headquartered in Singapore.
The $233 million investment entails $100 million, which will be utilised for letters of credit to be provided by third party financiers for projects. Given the size of the Asian market, Infratil aims to diversify its risk portfolio in terms of both geography and technology. The venture will focus on the development of wind, solar photovoltaic energy projects as well as storage solutions.
With over $4 trillion of investment expected in the wind and solar assets over the next decade, renewable energy poses a great investment opportunity for businesses. The Asian markets are characterized by rising demand growth for renewables, with industries and businesses moving towards decarbonisation and reduction in dependency on imported fuels. The national governments are also increasingly promoting efforts to reduce carbon emissions and establish a network of green energy. Asia, thus, provides tremendous opportunity for growth in the renewable energy segment.