The country may experience a rise in its gross domestic product (GDP) if the Philippines invests $150 million to $250 million to help advance the solar photovoltaic (PV) manufacturing industry in the next three to five years, the Asian Development Bank (ADB) revealed.
In its recent report entitled “Renewable Energy Manufacturing Opportunities for Southeast Asia,” ADB said that around $100 million to $175 million (Php 5.6 billion to Php 9.8 billion) will be added to the GDP should the Philippines develop a solar PV manufacturing industry.
ADB Sectors Group Director General and Group Chief Ramesh Subramaniam said that with policy, technical, and funding support, renewable energy manufacturing could help developing countries shift to RE while gradually decreasing carbon emissions.
This could also lead to local industrial capabilities expansion, creating more job opportunities, and establishing long-term economic growth in the region.
ADB affirms that an increase in GDP results in direct and indirect impacts. This affects directly the construction, operations, and equipment procurement. Meanwhile, its indirect impact would be from the supply chains.
Included in the projected boost to the GDP is the direct impact of $65 million to $115 million. Indirect and induced impact is estimated to be at $23 million to $43 million.
Moreover, approximately 8,000 to 12,000 new job opportunities might arise: 4,000 to 7,000 are direct impacts of the creation, 3,000 jobs are from indirect impacts, and 1,000 to 2,000 jobs are considered induced impact.
Annual cost savings from the operational improvements, meanwhile, are projected to reach $100 million to $140 million.
Earlier, ADB said an estimated $90 billion to $100 billion revenue opportunity and 6 million RE jobs by 2050 might occur if the industries of solar PV cells, batteries, and electric two-wheelers are established in Southeast Asia.