Jakarta. Energy expert Fabby Tumiwa said on Tuesday that ASEAN should develop its solar photovoltaic (PV) manufacturing facility as the technology is set to become a hot commodity globally in the future.

According to Fabby, ASEAN chair Indonesia should push for talks on the solar PV supply chain in the bloc’s upcoming ministerial meetings. ASEAN at present is witnessing rapid growth in energy demand. The Southeast Asian bloc should also have at least 241 gigawatts of solar PV installed power capacity by 2030 to keep global warming to 1.5 degrees Celsius. Countries across the globe are eyeing solar PV as they seek to shift to renewables.

“ASEAN must build its own solar PV manufacturing facility in order to ensure access to this critical technology for decarbonization and energy security. Such a facility is pivotal as solar PV will become a highly sought-after good in all nations as many countries decarbonize,” Fabby, who serves as the executive director of the think-tank IESR, said at the 2023 ASEAN Solar Summit in Jakarta on Tuesday.

“Southeast Asia must ensure affordable access to this technology by establishing a solar PV manufacturing and supply chain, which includes the polysilicon, ingot, wafer, cell and other components. Southeast Asia has the potential to become a solar PV manufacturing hub that supplies both domestic and global demand,” Fabby told the forum.

Seven ASEAN countries today have established their respective solar module facilities although at different levels with a total production capacity of 70 gigawatts. They are Vietnam, Malaysia, Thailand, Indonesia, Cambodia, the Philippines, and Singapore. 

Vietnam represents almost half of ASEAN’s total solar manufacturing capacity, reaching 34 gigawatts. Hanoi has quite a comprehensive supply chain encompassing wafers, cells, and modules. Indonesia’s capacity to produce solar modules only reaches 1.6 gigawatts. Malaysia is the only ASEAN country to supply silicon – another mainstay ingredient in solar cell production, according to Fabby. 

“China is taking the lead in Asia, with a solar PV module manufacturing capacity that reaches almost 400 gigawatts. India’s production capacity now stands at an estimated 40-50 gigawatts but is forecast to reach up to around 125 gigawatts by 2025. Southeast Asia is next,” Fabby said.

The US and Europe could become potential markets for exports of solar technologies. For instance, Vietnam is already exporting its solar panels to the US as the latter cuts down Chinese imports. Fabby added: “although many of the Chinese companies are relocating their production to Vietnam.”