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BlackRock Unit Aims to Boost Asian Renewables to $5 Billion


U.S. Hedge Funds

Seeking to keep pace with the world’s fastest-growing region for green energy. BlackRock Real Assets is aiming to boost its renewables power portfolio in Asia by as much as 10-fold.  According to Charlie Reid, managing director and portfolio manager of the BlackRock Renewable Power investment team the New York-based BlackRock Inc. Unit plans to raise invested capital in Asia-Pacific renewables to around $3 billion to $5 billion, from $500 million now, over the next three to five years.

Reid also said in a phone interview that “Asia Pacific is the fastest-growing region for renewable deployment, so that’s the reason we’re making the commitment to the region,” 

With a focus on Australia, Japan, Taiwan and South Korea, according to Reid the investments will see the capacity of its assets rise to 5 Gigawatts from 750 Megawatts over the period. Asia has emerged as the top destination for renewable investments as expanding electricity demand, government support for clean energy and falling costs for green technology support projects that can create steady returns.

Because of regulatory stability, growth opportunities and appealing risk-adjusted return, Taiwan is “highly attractive” for long-term investors  Reid said. Last month the company announced its second renewables investment on the island, where it currently owns over 190 megawatts of capacity across more than 40 projects partnering with J&V Energy Technology Co and New Green Power Co.

In the coming years BlackRock Real Assets aims to build around 1 gigawatt of solar projects in Taiwan.  Reid said in the next nine months he expects to see a new solar deal.  He also added that by 2020 possibly there will be an investment in offshore wind

With a focus on solar and battery storage, it plans to make its first investment in South Korea at end of this year or beginning of 2020.  Reid said that the company’s current investments are, 240 Megawatts in Australia, 200 Megawatts in Taiwan, and 300 Megawatts in Japan