The Future Energy Storage & System Integration Alliance (FESSIA) has released a report emphasising the importance of monetising Battery Energy Storage Systems (BESS) to enhance grid flexibility in Southeast Asia. The report, unveiled during Temasek’s Ecosperity Week 2026, highlights the growing need for system flexibility as variable renewable energy (VRE) deployment accelerates across the region.
Currently, ASEAN’s energy storage market is underdeveloped, with only 1.4 gigawatts in operation. Liming Qiao, CEO and Founder of FESSIA, stated, “The energy transition is entering a new phase where flexibility must become central to power-system planning, operations, and market design.” The report, developed with DNV, explores utility-scale BESS deployment pathways and suggests that clearer policy frameworks and market mechanisms are essential for scaling energy storage.
Key findings indicate that ancillary services in Vietnam and the Philippines offer the strongest economic case for BESS, with potential system cost reductions and revenue increases. In the Philippines, BESS ancillary services could cut system costs by up to US$275m annually and unlock US$2.25b in Solar + BESS revenues by 2030. Vietnam’s annual BESS investment could rise from US$750m in 2026 to US$5.7b by 2030.
Dr. Matthew Rowe from DNV Energy Systems noted the need for evolving electricity markets and regulatory frameworks to fully realise BESS’s system value. The report underscores that ASEAN’s challenge is market readiness rather than technology readiness, with revenue stacking identified as key to improving project bankability.
FESSIA’s launch also introduced inaugural members, including Trinasolar and PHENOGY, aiming to shape the future of energy storage in ASEAN. The full report is undergoing peer review and will be available soon.
