Southeast Asia | ASEAN and IEA Urge Regulatory Reforms to Accelerate Battery Storage Deployment

The ASEAN Centre for Energy (ACE) and the International Energy Agency (IEA) have called for clearer regulations and improved electricity market frameworks to accelerate battery energy storage system (BESS) deployment across Southeast Asia.

In a joint report published in September 2026 and discussed in October, the organisations highlighted regulatory uncertainty, limited revenue visibility and grid connection challenges as key barriers to energy storage investment across the region.

The report projects that variable renewable energy capacity in ASEAN could increase from 53.7 GW in 2024 to approximately 231 GW by 2030 under its regional scenarios. As solar and wind power expand, battery storage will become increasingly important for balancing electricity supply and demand, improving grid flexibility and reducing renewable energy curtailment.

Vietnam has introduced a framework under Circular No. 62/2025/TT-BCT, effective from January 2026, that provides a two-part tariff structure for battery storage, separating capacity and energy charges. The approach is intended to better reflect the different services storage systems can provide.

The report also calls on ASEAN governments to clarify storage asset classification, ownership rules, grid charges and procurement mechanisms. Improving these frameworks could help developers establish more predictable revenue models and attract investment into utility-scale and renewable-energy-linked storage projects.

For investors and project developers, the message is clear: technology costs alone will not determine the pace of storage deployment. Clear regulations, bankable contracts and market mechanisms that recognise the value of flexibility will also be essential.