Report Identified Battery Storage Barriers in Southeast Asia
A new publication from the ASEAN Centre for Energy and the IEA outlines obstacles to expanding regional storage infrastructure.
Updated on Oct. 12, 2026 in Energy
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The ASEAN Centre for Energy and the IEA have published a report highlighting regulatory frameworks as the primary constraint on battery energy storage system (BESS) adoption in Southeast Asia. The findings suggest that high capital costs and limited revenue visibility remain critical barriers for regional expansion.
Why it matters
Expanding storage capacity is essential for managing grid demand, especially as regional data centre power requirements are projected to grow from 2.6GW in 2025 to 10.7GW by 2035. Addressing these systemic obstacles is key to enabling a broader transition toward renewable energy integration.
The region is targeting significant BESS growth, including Vietnam's 16.3GW goal by 2030 and Thailand's draft plan for 14.5GW by 2037. This follows major milestones such as the Philippines' 1.19GW auction of storage-integrated energy projects in 2025.
The players
ASEAN Centre for Energy
This is an intergovernmental organization that provides strategic policy recommendations to improve the energy security and sustainability of Southeast Asian nations.
International Energy Agency
This is an intergovernmental organization that provides analysis and data on global energy trends and policies to support a sustainable energy transition.
ACEN
This is a publicly listed energy platform that focuses on developing renewable energy projects across the Asia-Pacific region.
The details
Most ASEAN countries utilize single-buyer market structures that necessitate regulated procurement and capacity payments to facilitate BESS investment. In contrast, liberalized markets in the Philippines and Singapore have already enabled BESS to access multiple revenue streams.
Timeline
Singapore reached a 200MW storage target in 2023.
The Philippines launched a reserve market in 2024.
The Philippines awarded 1.19GW of storage-integrated energy projects in 2025.
ACEN provided PHP9 billion in loans to subsidiaries for projects in September 2026.
Variable renewable energy is expected to supply 5% to 50% of regional generation by 2030.
The Big Picture
The report provides a critical update on the ASEAN Renewable Energy Long-term Roadmap by highlighting the specific regulatory hurdles currently impeding the projected fivefold increase in storage capacity. By identifying these systemic bottlenecks, the research refines the path toward achieving regional renewable generation targets.
Increased investment in battery storage could stabilize electricity prices by reducing reliance on expensive peak-load power plants. As grid infrastructure improves, residential and industrial consumers may see more consistent energy availability despite the rising power demands of data centres.
The takeaway
Future progress in regional energy storage depends on shifting from strictly regulated single-buyer markets to more flexible frameworks that allow for diversified revenue. Readers should watch for legislative updates in Southeast Asia that may soon enable more private sector participation in grid-scale storage.
Further reading
Learn more about the latest developments in the sector on our Energy page.
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Should governments prioritize regulatory reforms to accelerate private investment in battery energy storage infrastructure?
