The Southeast Asia region, with its rapidly growing economies, increasing energy demands and grid constraints, is facing unique challenges in the energy transition. The combination of the shift to renewable energy and the lack of grid stability in several Southeast Asian nations indicates the need for storage technologies, a need which is starting to be recognised at governmental level. Southeast Asia can look to Australia and Japan as examples of how to promote the adoption of energy storage systems.
Opportunities still exist for investors in Southeast Asia, particularly in the co-location of renewables projects with energy storage and Singapore’s ongoing procurement of low-carbon electricity imports. Investors should keep an eye on the developing regulatory picture, as first mover advantage could be key to realising all the opportunities that energy storage provides. Structuring of the offtake agreements is likely to be particularly important for energy storage projects and will require a different approach than those for solar and wind projects.
This briefing “Energy Transition in Southeast Asia: Solving the Storage Problem” by Clifford Chance examines the regulatory frameworks currently in place in Southeast Asia, what more can be done, and the revenue models necessary to attract private sector investment in utility-scale energy storage.
Access the brief here
