Renewable energy in South-east Asia, including Laos, to deliver US$100bil in revenues

Laos has high potential for development of renewable energy including solar power project. -- VT

VIENTIANE (Vientiane Times/Asia News Network): Renewable energy generation in South-east Asia, including Laos, can generate US$90 billion to US$100 billion in sustainable revenues by 2030, according to a new report.

The report, “Renewable Energy Manufacturing: Opportunities for Southeast Asia”, was published by the Asian Development Bank (ADB) and a collection of non-profit organisations – Bloomberg Philanthropies, ClimateWorks Foundation and Renewable Energy For All.

“Growing South-east Asia’s solar photovoltaic (PV) cells, battery, and electric two-wheeler industries presents an estimated US$90 billion to US$100 billion revenue opportunity by 2030, with a potential 6 million renewable energy jobs to be created by 2050,” the ADB said.

Laos is committed to promoting renewable energy and investments in low-carbon sectors to achieve carbon neutrality by 2050. For instance, the Monsoon Wind Power Project, with a capacity of 600 MW, is set to be built in Xekong and Attapeu provinces in southern Laos to export and sell electricity to neighbouring Vietnam.

According to the report, South-east Asia is a solar PV manufacturing hub with 2 per cent to 3 per cent of the world’s polysilicon and wafer capacity, and 9 per cent to 10 per cent of the world’s cells and modules capacity.

Production is concentrated in four countries – Cambodia, Laos, Thailand, and Vietnam. Most manufacturing capacity in the region was established by manufacturers from China.

According to the report, government-to-government partnerships can facilitate higher build out of solar PV capacity by connecting Southeast Asian countries with lower renewables potential to those with abundant supply.

For example, Singapore has signed agreements with four neighboring countries (Cambodia, Indonesia, Laos, and Malaysia) to support its target to import up to 4 GW of low-carbon electricity from the region by 2035.

“South-east Asia has the potential to become a leader in renewable energy manufacturing to contribute to global renewable energy deployment, while simultaneously achieving economic growth and mitigating the impacts of climate change,” said - Antha Williams, Environment Programme Head of Bloomberg Philanthropies.

“This report proves how increasing private sector investments into local renewable energy manufacturing sectors, strengthening regional value chain collaboration, and bringing together key stakeholders will create jobs, increase GDP, and help South-east Asian nations meet their climate goals,” she said.

According to the report, South-east Asia could lose up to 30 per cent 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 countries in the region to create new jobs and meet growing energy demand while drastically reducing emissions.

The report highlights how South-east Asia can build on its strong history of regional collaboration to enhance the competitiveness of its renewable energy industries and meet its net-zero targets. For example, production factors can benefit from trade across the value chain, and regional efforts to improve workforce quality and distribution.