, Singapore

These are the investment hotspots in Asian energy sector

Renewable energy assets still lure investors in.

T&D utilities are still seen as safe investment havens, trading at a premium of 16% to long-term price to earnings (P/E) two-year forward estimates, according to EY's Power transactions and trends: 2016 review and 2017 outlook.

In the quarter’s biggest deal, a consortium of Õnancial investors acquired a 50.4% stake in Australian state-owned distributed company Ausgrid for US$12.6b —
an enterprise value representing 1.4 times Ausgrid’s regulated asset base and 15.2 times its FY 2016 EBITDA.

Here's more from EY:

Renewable energy assets are also continuing to attract investor attention. In November, the Australian CleanTech Index gained 2.6% and outperformed the wider market, rising from 55.55 to 56.99 points over the month.

Throughout the region, clear government support for renewable energy is boosting investment. China aims to double its solar capacity by 2020 from 2015 levels and increase wind capacity by 50% during the same period.

We expect the valuations of renewable assets to remain high and investment to increase in this segment in 2017

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