Key Highlights

Battery energy storage systems (BESS) are becoming a core part of Asia’s powersector transition. Growing solar and wind capacity is increasing demand for flexible capacity, frequency control and reliable supply, while battery costs continue to fall. The report estimates around 100 GW of BESS deployment across Asia-Pacific by 2030, in addition to around 160 GW in China. For investors, the opportunity is highly market-specific. Project returns depend on the services a battery can provide, the rules and tariffs that pay for those services, the ability to combine revenue streams, grid-connection costs, counterparty quality and the availability of suitable finance. A low-cost battery does not compensate for weak tariff design, unavailable market access or an unbankable revenue profile.