Renewable energy is not only a solution for climate change but a catalyst for economic growth across the Asia Pacific. In a region marked by rapid development and rising energy demand, investing in renewable energy sources such as solar, wind and hydropower delivers measurable economic benefits. These include job creation, stabilized electricity costs, energy security and sustainable infrastructure development.
Renewable energy offers an opportunity to foster resilient economies while advancing environmental goals. This article explores some of the economic impacts of renewable energy across the Asia Pacific, highlighting key examples and insights that demonstrate their vital role in shaping a prosperous future.
How does renewable energy help the economy?
Creating jobs and economic growth
Investment in renewable energy deploys capital that generates jobs across multiple sectors—from manufacturing and construction to operations and maintenance. In the Asia Pacific, the renewables sector is one of the fastest-growing employment generators. The International Renewable Energy Agency (IRENA) estimates that renewables will create over 25 million jobs globally by 2030, with Asia commanding the largest share due to its rapid industry expansion.
For instance, China’s energy manufacturing accounted for 63% of global solar photovoltaic (PV) employment in 2021, creating millions of jobs. Meanwhile, Southeast Asia is witnessing an influx of renewable energy projects, stimulating employment in countries like the Philippines, Indonesia and Vietnam. Ernst & Young’s analysis of renewable energy projects across Asia Pacific markets forecasts the potential creation of 870,000 jobs in the region.1 This surge in employment boosts local economies, enhances skills development and fosters new renewable energy business opportunities.
ACEN, for its part, invested ₱222 million* in sustainability programs that uplift its host communities across the Philippines and Asia Pacific. From building essential infrastructure such as access roads, bridges and classrooms for Indigenous communities, to creating sustainable livelihoods for farmers, supporting, and leading emergency relief and climate resilience initiatives, ACEN’s commitment to positive community impact goes hand in hand with its renewable energy development.
*as of December 2024
Stabilizing energy costs and enhancing energy security
Renewable energy investments help stabilize electricity prices by reducing reliance on imported fossil fuels, which are subject to global market volatility. Renewable energy projects enable the country to diversify its energy mix and shield its economy from fuel price shocks. Increasing solar, wind and hydropower capacity delivers more predictable, cost-effective electricity, ultimately lowering the financial burden on consumers and businesses.
Several Asia Pacific countries have reported tangible economic gains from boosting renewables. According to the Asian Development Bank (ADB), clean energy investments in developing Asia rose by over 900% since 2013, reaching $729 billion in 2023. These renewable-focused investments are key to achieving energy security and reducing greenhouse gas (GHG) emissions across the region.
Driving innovation and infrastructure development
Renewable energy projects do more than produce clean power. They also spark innovation and infrastructure investments that benefit many different industries. By developing things like smart grids, upgrading transmission networks and integrating battery energy storage technologies, emerging markets like the Philippines can build a modern, more efficient electricity system. This new infrastructure can support sustainable urbanization and industrial growth, creating a foundation for a stronger, more resilient economy for years to come.
In Vietnam, large-scale wind farms backed by international financing have not only increased clean power capacity but also spurred regional development. ACEN’s renewable energy projects, such as the 88 MW Ninh Thuận Wind, exemplify how renewable investments contribute to technology transfer, workforce training and community upliftment. Similarly, Japan’s leadership in offshore wind technology drives cross-border collaborations, positioning the Asia Pacific as an innovation hub in clean energy.
Supporting overall quality of life
Renewable energy improves public health and lowers healthcare costs by reducing pollution and carbon emissions. Cleaner air and water enhance workforce productivity and quality of life, further strengthening economic foundations.
Renewables also empower underserved and rural communities by improving energy access, which is essential for education, healthcare and entrepreneurship. Community-based programs in the Philippines have demonstrated how the benefits of renewable energy in communities lead to sustainable environmental, social and economic development. This shows that the economic benefits of renewable energy reach far beyond energy generation.
Powering the economy through sustainable investment
The economic value of renewable energy extends beyond immediate gains—it forms the foundation for resilient and inclusive growth across the Asia Pacific. For governments and businesses, investing in renewable energy projects is a forward-looking strategy that builds lasting economic stability while advancing environmental commitments.
ACEN recognizes that meaningful progress requires collaboration. By working alongside investors, policymakers, and local communities, renewable energy initiatives can deliver amplified benefits that reach far beyond electricity generation and cultivate innovative solutions and sustainable infrastructures that empower regions and protect the planet.
As the energy sector evolves, those who engage thoughtfully and strategically in renewables will shape a future that balances economic development with environmental stewardship.
References:
- Asian Development Bank. (2025, April 28). Asia and the Pacific Needs Grid Upgrade to Drive Energy Transition, says ADB Report. Asian Development Bank. https://www.adb.org/news/asia-and-pacific-needs-grid-upgrade-drive-energy-transition-says-adb-report
- Heger, I. (2020). Japanese Industry and Policy News: Offshore Wind Technology | EU-Japan. Eu-Japan.eu. https://www.eu-japan.eu/news/japan-industry-and-policy-news-offshore-wind-technology
- IRENA and ILO. (2022). Renewable Energy and Jobs: Annual Review 2022. International Renewable Energy Agency. https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_856649.pdf
- Viktor Tachev. (2022, July 7). The Economic Benefits of Renewable Energy in Asia – Crunching the Numbers. Energy Tracker Asia. https://energytracker.asia/economic-benefits-of-renewable-energy-for-asia/
