Renewable energy manufacturing offers huge opportunity to Southeast Asia: study

By Nguyen Long
Fri, August 25, 2023 | 6:31 pm GMT+7

Southeast Asia, which includes Vietnam, could lose up to 30% of its GDP by 2050 due to increases in global temperature and extreme weather events, but bolstering its renewable energy manufacturing would help regional nations in several aspects, according to a new report.

This renewable energy development would position the regional countries to create new jobs and meet growing energy demand while drastically reducing emissions, according to the report released Thursday on the sidelines of the ASEAN Finance Ministers and Central Bank Governors Meeting by the Asian Development Bank (ADB), Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All (SEforALL).

Growing Southeast Asia’s solar photovoltaic (PV) cells, battery and electric two-wheeler (E2W) industries presents an estimated $90 billion to $100 billion revenue opportunity by 2030, with a potential six million renewable energy jobs to be created by 2050, says the “Renewable Energy Manufacturing: Opportunities for Southeast Asia” report.

Growing Southeast Asia’s renewables presents estimated $90-100 billion revenue opportunity by 2030, with a potential 6 million renewable energy jobs to be created by 2050. Photo courtesy of Asian Development Bank.

Growing Southeast Asia’s renewables presents estimated $90-100 billion revenue opportunity by 2030, with a potential 6 million renewable energy jobs to be created by 2050. Photo courtesy of Asian Development Bank.

The study explores how to support the development of the clean energy manufacturing sector in the region and help the countries reap its immense economic potential while mitigating the impacts of climate change.

The report identifies potential ambition and outcomes for Southeast Asia to achieve the following. First, growth in solar PV manufacturing capacity in modules from 70 gigawatts to 125GW to 150GW by 2030.

Second, development of a regional battery manufacturing value chain, increasing national and regional demand, and establishment of Southeast Asia as a regional and global export hub, producing 140 GW-hours to 180 GW-hours of battery cells by 2030.

Third, expansion of assembly capacity for E2Ws in the region from 1.4 million to 1.6 million units annually to approximately four million units by 2030. Catching this opportunity, according to the report, depends on government policy measures specific to each country in the region, including stimulating domestic renewable energy demand; ensuring cost competitiveness; improving the ease of doing business, and improving access to export markets.

“As we often say in ADB, the battle against climate change will be won or lost in Asia and the Pacific, and a decisive front in that battle is Southeast Asia,” Ramesh Subramaniam, the ADB’s sectors group director-general and group chief, said in a release.

“This study shows the promise of renewable energy manufacturing – with policy, technical and financing support – in helping the region’s developing countries to transition away from coal-based energy, while lowering carbon emissions, expanding local industrial capabilities, spurring job creation and driving long-term economic growth,” he said.

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for SEforALL and UN-Energy co-chair, said: “By growing their renewable energy manufacturing capabilities, Southeast Asian countries can increase GDP, create jobs, and decarbonize energy systems, contributing to both economic growth and climate progress.”

SEforALL is an independent international organization that works in partnership with the United Nations (UN) and leaders in government, the private sector, financial institutions, civil society, and philanthropies to drive faster action towards the achievement of Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030 – in line with the Paris Agreement on Climate Change.

Vietnam, which is seeking to reach its carbon neutrality target by 2050, is in a clean energy transition journey and is promoting renewable energy sources like wind and solar power, green hydrogen, and biomass. LNG is also part of this transition.

Comments (0)
  • Read More
PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.

Finance - Fri, November 22, 2024 | 8:25 am GMT+7

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.

Energy - Thu, November 21, 2024 | 10:41 pm GMT+7

Indonesia, France step up cooperation in economy, defence

Indonesia, France step up cooperation in economy, defence

Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.

Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7

Thai economy to maintain upward momentum in 2025

Thai economy to maintain upward momentum in 2025

The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.

Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7

Former parliament chairman Vuong Dinh Hue warned for violations

Former parliament chairman Vuong Dinh Hue warned for violations

The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.

Politics - Thu, November 21, 2024 | 10:10 pm GMT+7

Sumitomo insists on building LNG power plant in central Vietnam

Sumitomo insists on building LNG power plant in central Vietnam

Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.

Energy - Thu, November 21, 2024 | 8:53 pm GMT+7

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vietnam’s Vinhomes fulfils 67% of record buyback plan

Vinhomes, the housing development arm of conglomerate Vingroup, has purchased back 246.98 million shares, meeting 66.75% of the plan and accounting for 5.7% of the outstanding volume.

Finance - Thu, November 21, 2024 | 8:43 pm GMT+7

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam’s mega North-South high-speed railway project should be redesigned and extended beyond Hanoi and Ho Chi Minh City as currently planned, several lawmakers have suggested.

Infrastructure - Thu, November 21, 2024 | 6:11 pm GMT+7

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam and Malaysia have upgraded their relationship to a comprehensive strategic partnership, the highest level in the former’s diplomatic hierarchy.

Politics - Thu, November 21, 2024 | 5:21 pm GMT+7

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

PV Power and PV Gas, two units of state-owned Petrovietnam, have signed an LNG supply deal for trial operation of Nhon Trach 3 and Nhon Trach 4, Vietnam’s first LNG-to-power plants.

Energy - Thu, November 21, 2024 | 4:40 pm GMT+7

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Minister of Transport Nguyen Van Thang affirmed Wednesday that funding would be secured for building the Long Thanh International Airport, set to become Vietnam’s biggest.

Infrastructure - Thu, November 21, 2024 | 3:53 pm GMT+7

Bamboo Capital wins kudos for transparent reports, good governance

Bamboo Capital wins kudos for transparent reports, good governance

Vietnamese private conglomerate Bamboo Capital Group has been honored as a Top 20 business with the Best Annual Report and the Best AGM Organization at the 2024 Vietnam Listed Company Awards (VLCA).

Bamboo Capital - Thu, November 21, 2024 | 3:37 pm GMT+7

VAFIE to organize workshop on amendments to horse racing, football betting rules

VAFIE to organize workshop on amendments to horse racing, football betting rules

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and The Investor will organize a workshop on suggestions to amend the government’s Decree 06 on horse racing, greyhound racing and international football betting services.

Economy - Thu, November 21, 2024 | 2:38 pm GMT+7

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam’s highest decision-making body, the Politburo, has greenlighted the establishment of an international financial center in Ho Chi Minh City and a regional financial center in the central city of Danang.

Economy - Thu, November 21, 2024 | 1:50 pm GMT+7

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.

Finance - Thu, November 21, 2024 | 11:29 am GMT+7

Posco keen on investing in Vietnam's $2.2 bln LNG power project

Posco keen on investing in Vietnam's $2.2 bln LNG power project

South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.

Energy - Thu, November 21, 2024 | 10:42 am GMT+7