ASEAN | ACE and IEA Call for Regulatory Reforms to Accelerate Battery Storage Deployment

Kerajaan bakal lancar LSS6 dengan syarat integrasi BESSSOUTHEAST ASIA, October 2026 — The ASEAN Centre for Energy (ACE) and the International Energy Agency (IEA) have called for regulatory reforms and improved market mechanisms to accelerate battery energy storage system (BESS) deployment across Southeast Asia.

In a joint policy paper launched on October 7, 2026, the organisations identified policy, regulatory and market-design barriers as major obstacles to integrating variable renewable energy (VRE), including solar and wind power, into regional electricity systems.

Regulatory Frameworks Key to Battery Storage Deployment

The report highlights the need for clearer regulations, improved procurement frameworks and more effective remuneration mechanisms to support battery storage investment.

Key priorities include establishing appropriate market rules, improving project procurement processes and developing revenue mechanisms that enable storage operators to recover their investments.

These measures are intended to help energy storage move beyond individual project deployments and become an integral component of regional electricity systems.

Renewable Energy Capacity Set to Expand

According to the joint paper, Southeast Asia's variable renewable energy capacity stood at approximately 53.7 GW in 2024. Under the report's scenarios, this could increase to around 231 GW by 2030.

As solar and wind deployment accelerates, battery storage can help manage fluctuations in electricity generation, improve grid flexibility and reduce the need to curtail renewable power.

However, the report stresses that expanding storage deployment will require more than technological improvements. Regulatory clarity, investment incentives and suitable market structures will also be essential.

Implications for Southeast Asia's Energy Market

The recommendations provide a regional framework for governments, regulators, utilities and investors seeking to accelerate battery storage development.

For project developers and storage suppliers, clearer rules on procurement, grid access and revenue opportunities could improve investment visibility and support the development of new utility-scale and renewable energy-linked storage projects.

As ASEAN countries pursue higher renewable energy targets, the development of supportive policy and market frameworks will play an increasingly important role in determining how quickly battery storage can be deployed across the region.