Asian Clean Energy Investment

McKinsey's report 'Asia's Energy Reckoning' says the Strait of Hormuz disruption has exposed the region's dependence on imports and that system redesign could require about $1 trillion in annual energy investment over the next 15 years. Renewables remain the largest value pool, with about $300 billion in annual solar and wind investment expected through 2040.

Grid investment in Asia could rise from about $185 billion today to more than $300 billion by 2030, with storage and high-voltage transmission linking renewable-rich regions to demand centers. By 2040, firmed renewables are also gaining a widening cost advantage over coal and gas, while biofuels could replace $90 billion to $100 billion in fuel imports.

As Asia weighs resilience, the report signals that clean power, grids and storage could cut import exposure.