Southeast Asia is one of the most vulnerable regions to climate change. The extensive coastline and lowlands make the region vulnerable to extreme weather conditions and rising sea levels, affecting more than 600 million people.
Therefore, Southeast Asian countries need to adapt their development strategies that increasingly contribute to global warming, such as the region's reliance on coal and oil as major energy sources. If left unchecked, global warming could reduce Southeast Asia's GDP by about 11 percent by the end of the century and affect key sectors such as agriculture, tourism and health services.
Therefore, Southeast Asia has the potential to become a global leader in the production of renewable resources while meeting its economic growth goals. Countries in the region already have a strong manufacturing base, and renewable energy generation could generate potential revenues of $160-200 billion in Southeast Asia by 2030. According to the Asian Development Bank report, it will be 50-60 percent. of income. Produced with renewable energy. Driven by low carbon mobility and clean energy.
Where are the investment opportunities?
Photovoltaic solar production
Southeast Asia could produce 125 to 150 GW of modules by 2030. The region already controls 2 to 3 percent of global polysilicon and wafer capacity and 9 to 10 percent of global module and cell capacity. Most of the production is concentrated in Laos, Malaysia, Vietnam, Cambodia and Thailand.
Moreover, according to the International Energy Agency, Southeast Asian countries account for one-third of global exports of photovoltaic modules. Most of these PV exports are destined for the US and EU markets.
Countries such as Vietnam, Malaysia and Thailand have abundant manufacturing capacity to meet domestic and global demand, while Indonesia has smaller scale module assembly companies serving its large domestic market.
Production of batteries
Southeast Asia has great potential to produce 140-180 GW of batteries by 2030 and is becoming a battery manufacturing hub. Given the region's abundant mineral resources, Southeast Asia is certainly favorable for the development of the nickel-manganese cobalt (NMC) battery ecosystem.
The region is home to 25 percent of global nickel reserves, and Indonesia itself has the largest share of global nickel reserves (about 21 percent of global reserves).
Demand for batteries in Southeast Asia is expected to grow over the coming decades, with an annual growth rate of 40 percent by 2030 and expected to reach 70 to 80 GWh. This demand is driven by the development of electric vehicle batteries and battery energy storage systems (BESS).
Demand for electric vehicle batteries increased in Indonesia, Thailand and Vietnam, while in Malaysia and the Philippines it was mainly driven by BESS.
Indonesia electric battery supply network
Indonesia's nickel reserves make the country important to the global electric vehicle industry, and the country aims to become a global center for electric vehicles. Global electric car makers, including America's Tesla and China's BYD, are reportedly finalizing investment deals in Indonesia, said Coordinating Minister for Maritime Affairs and Investments Luhut Binsar Pandajaitan. Indonesia aims to become one of the world's three largest producers of electric vehicle batteries by 2027.
Indonesia first banned nickel ore exports in 2014 and required producers to refine crude nickel in Indonesia before exporting it. Foreign investors, particularly from China, have begun to invest in Indonesia's nickel supply chain, particularly in the construction of smelters; Indonesia's Ministry of Energy and Mineral Resources aims to have 30 smelters by the end of 2023. This is an ambitious goal. two foundries in 2016 and 15 today.
Indonesia's refined nickel exports are expected to reach nearly $30 billion in 2022, a huge increase from just $1 billion in 2015. By 2025, global nickel production is expected to grow by half.
Conclusion
In conclusion, Southeast Asia is at a critical juncture where the transition to renewable energy production will not only address climate vulnerability, but also open up significant economic opportunities. By facilitating solar photovoltaic and battery production, these countries can lead global initiatives toward sustainable energy while strengthening their economic growth and resilience in the face of climate change.
around us
The ASEAN Report is produced by Dejan Shira & Associates. The firm assists foreign investors throughout Asia and has offices in ASEAN, including Singapore, Hanoi, Ho Chi Minh City and Danang, Vietnam, as well as Jakarta, Indonesia. We have partner organizations in Malaysia, the Philippines and Thailand, as well as our own expertise in China and India. Please contact us at asean@dezshira.com or visit our website at www.dezshira.com.
Can India replace the greatest power of all time? |: full episode of knowledge
