Report: SE Asia’s renewable energy sector to generate US$100b potential revenue by 2030
24 Aug 2023
The growing use of solar photovoltaic (PV) cells, battery, and electric two-wheeler (E2W) industries in South-east Asia could potentially yield between US$90 billion and US$100 billion (RM417 billion to RM464 billion) by 2030, according to a recent research.
The report titled “Renewable Energy Manufacturing: Opportunities for South-east Asia” suggested that this growth may create six million renewable energy sector jobs by 2050.
Launched at the Asean Finance Ministers and Central Bank Governors Meeting, the report was a collaboration between the Asian Development Bank, Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All.
Achieving this potential could involve expanding solar PV manufacturing capacity from 70 gigawatt (GW) to a range of 125-150 GW, the report noted.
The report suggested establishing a battery manufacturing value chain in Southeast Asia to meet regional and global demand, with the aim to produce 140-180 GW-hours of battery cells.
To accommodate E2W growth, the report recommended raising assembly capacity from 1.4 million to 1.6 million units annually, eventually reaching four million units.
It also emphasised the region’s chance to leverage collaboration, trade, and workforce enhancement for competitive renewable energy growth and net-zero goals.
Other recommendations include expanding the Asean Power Grid, harmonising technical standards for electric vehicles, and optimising the value chain.
“The build-out of the Asean Power Grid to enable higher renewables deployment through multilateral power trade and expanded grid balancing areas could support demand.
“Harmonisation of technical standards for E2W vehicles and charging stations could enable original equipment manufacturers to develop products that suit market needs,” it noted.
The report also warned that without action, the region could potentially face a 30 per cent gross domestic product loss by 2050 due to climate change impacts.