Developing Renewable Energy Would Stimulate the Economic Growth of Southeast Asian

Ten members of Association of Southeast Asian Nations are planning to make solar power and other renewable energy become 23% of total power supply in this areas before 2025, but IRENA (International Renewable Energy Agency) think that these Countries’ Government need make better strategy and investment framework in order to achieve this target.

Z. Amin who is IRENA’s secretary-general said, “in order to achieve this target that 23% of energy structure is renewable before 2025, Southeast Asia Countries have to largely increase renewable deployment for Power Sector, Heating Supply, freezing and transportation field.”

In future years, the increasing deployment for solar power and other renewable energy would continue to push economic growth, and improve the electric power supply of Southeast Asian. IRENA addressed in “The Analysis of Renewable Market: Southeast Asian”, the economic growth rate of this area is higher than 4% annually at present, which would push the energy demand in future years, renewable energy would fill up this blank.

The power consumption of ASEAN’s area has increased a lot in 2006-2015, yearly increase rate is 3.4%, the demand of Brunei, Cambodia and Vietnam is rapid increase. Whereas, Indonesia, Malaysia, Thailand and Vietnam dominated the biggest market share in 2015.

It is predicted that the power consumption of this area would be increased double in 2040. Therefore, Southeast Asian would confront “Astonishing Energy Challenge” in future years. But, solar energy would become the ideal choice to save the increasing energy demand, the cost of solar pv installation has reduced for 45% from 2012 to 2016.

For economy, IRENA admitted that the extensive renewable development just can slightly push regional international gross domestic product. From 2006 to 2016, the cumulative investment of whole ASEAN’s economy is 27 billion dollar for renewable energy. But besides to simply increase yearly GDP, bigger deployment would have other economic effect.

Amin explained, “Accelerating to adopt renewable energy would provide widely environment, economy and social efficiency, including to create employment opportunities, reducing air-pollution and dealing with climate change.”, “Decision maker and other developing actor should be priority to consider cleaning, reliability and affordable energy investment as this area developing pillar.”

IRENA said, Renewable energy has created about 611,000 new jobs in 2016, Liquid Biofuel is the largest to bring new jobs, the second is solar power and large-scale hydropower.

Presently, large-scale hydropower is above 75% of district renewable combination, but its installation volume was decreased from 80% in 2000 to 75% in 2016. Although, having deployment solar energy in past years, the solar energy just has a small part among district power generation.

Southeast Asia still very rely on fossil fuel to generate and transport, in addition, there are about 65 million population to be lack of reliable power supply. IRENA think, solar power and other renewable energy could play an important effect to improve energy supply of Southeast Asian. However, although all ASEAN’s Countries have made renewable target, this area still doesn’t have potential to truly exploit widely renewable energy.

Fortunately, the renewable investment has increased to 27 billion dollar between 2006 and 2016, mainly concentrated in Indonesia, Philippines, Singapore, Thailand and Vietnam. Thailand is the most among them, its investment has exceeded ten billion dollar, the second is Indonesia and Philippines. Bioenergy is the biggest investment target, the second is solar energy and geothermal energy.

Amin addressed, “Affordable, Safe and Environmental Sustainable energy is key important to future decades development of Southeast Asian”, “Through investing renewable energy, the power supply diversification of Southeast Asian provides optional possibility to support extensiveness, and also realized more widely social economy and environmental benefits.”

Bingsolar Power, 28th, May, 2018