JAKARTA, 25th August, 2023 (WAM) -- Growing Southeast Asia's solar photovoltaic (PV) cells, battery, and electric two-wheeler industries presents an estimated US$90-100 billion revenue opportunity by 2030, with a potential 6 million renewable energy jobs to be created by 2050, according to new research released today 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).

The new report, Renewable Energy Manufacturing: Opportunities for Southeast Asia, warns that the Southeast Asian region could lose up to 30 percent of its gross domestic product by 2050 due to increases in global temperature and extreme weather events, but bolstering the region's renewable energy manufacturing capacity would position Southeast Asian countries to create new jobs and meet growing energy demand while drastically reducing emissions.

The report explores how to support the development of the clean energy manufacturing sector in Southeast Asia and help countries reap its immense economic potential while mitigating the impacts of climate change. Seizing this opportunity 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. Collaboration at the regional level is also essential to provide further support through the deepening of intraregional trade.

The report identifies potential ambition and outcomes for Southeast Asia to achieve the following:

Grow solar PV manufacturing capacity in modules from 70 GW to 125-150 GW by 2030.
Develop a regional battery manufacturing value chain, increasing national and regional demand, and establish Southeast Asia as a regional and global export hub, producing 140-180 gigawatt-hours (GWh) of battery cells by 2030.
Expand assembly capacity for electric two-wheelers (E2W) in Southeast Asia from 1.4 to 1.6 million units annually to approximately 4 million units by 2030.

"This research 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.,'' said ADB Sectors Group Director General and Group Chief Ramesh Subramaniam. of its gross domestic product by 2050 due to increases in global temperature and extreme weather events, but bolstering the region's renewable energy manufacturing capacity would position Southeast Asian countries to create new jobs and meet growing energy demand while drastically reducing emissions.

The report explores how to support the development of the clean energy manufacturing sector in Southeast Asia and help countries reap its immense economic potential while mitigating the impacts of climate change. Seizing this opportunity 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. Collaboration at the regional level is also essential to provide further support through the deepening of intraregional trade.

The report identifies potential ambition and outcomes for Southeast Asia to achieve the following:

- Grow solar PV manufacturing capacity in modules from 70 GW to 125-150 GW by 2030.

- Develop a regional battery manufacturing value chain, increasing national and regional demand, and establish Southeast Asia as a regional and global export hub, producing 140-180 gigawatt-hours (GWh) of battery cells by 2030.

- Expand assembly capacity for electric two-wheelers (E2W) in Southeast Asia from 1.4 to 1.6 million units annually to approximately 4 million units by 2030.

"This research 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,'' said ADB Sectors Group Director-General and Group Chief Ramesh Subramaniam.