The Future Energy Storage & System Integration Alliance (FESSIA) unveiled the key findings of its inaugural report, “Unlocking the Role of Utility-scale Battery Energy Storage Systems (BESS) in ASEAN electricity markets,” on Day 1 of Temasek’s Ecosperity Week 2026.
As variable renewable energy (VRE) deployment accelerates across Southeast Asia, system flexibility and BESS are becoming increasingly critical to maintaining grid reliability and energy security. Yet ASEAN’s energy storage market remains underdeveloped, with only around 1.4 GW currently in operation.
Liming Qiao, CEO and Founder, FESSIA, said: “The energy transition is entering a new phase where flexibility must become central to power-system planning, operations, and market design. The first phase of the transition is focused on deploying renewable energy. The last 10% will depend on whether power systems can integrate renewables reliably at scale.”
“BESS should not be viewed simply as a power bank. Its real value lies in the broader flexibility and system services it can provide, including ancillary services, energy shifting, renewable energy hybridization, and transmission and distribution deferral.”
“To unlock the full value of BESS, policy and market frameworks must evolve to properly value flexibility and create stronger investment signals for the next generation of energy infrastructure. This is where FESSIA’s route-to-market frameworks play a critical role in unlocking investment, enabling grid flexibility, and strengthening long-term energy security across ASEAN.”
Developed in collaboration with DNV, the report is one of the region’s first in-depth studies into utility-scale BESS deployment pathways across ASEAN. It examines how clearer policy frameworks, market mechanisms, and revenue models can help scale and monetize energy storage across the region, using the Philippines and Vietnam as case studies.
Key Findings From The Report
- High-value BESS use cases already exist where ancillary services currently provide the strongest economic case for BESS in Vietnam and the Philippines.
- Hybridization and energy shifting are already commercially viable in countries like Vietnam and the Philippines.
- In the Philippines, BESS ancillary services could reduce system costs by up to USD 275 million annually and unlock USD 2.25 billion in Solar + BESS revenues by 2030.
- In Vietnam, annual BESS investment could grow from USD 750 million in 2026 to USD 5.7 billion by 2030.
- Revenue stacking will be key to improving project bankability and accelerating deployment.
While BESS technology costs have fallen by nearly 90% over the past decade and global deployment continues to accelerate, ASEAN’s challenge is no longer technology readiness, but market readiness.
Dr. Matthew Rowe, Director, Power Grids Asia Pacific, DNV Energy Systems, said:
“Accelerating the energy transition across ASEAN requires electricity markets and regulatory frameworks to evolve to fully realize the system value that BESS can provide. In both the Philippines and Vietnam, many of the highest-value use cases for storage depend on clearer operational rules and mechanisms that properly recognize the fast-response and flexibility capabilities of BESS, with revenue stacking offering additional upside by strengthening project economics and reducing investment risk. DNV is pleased to support FESSIA in the development of this report, contributing insights to help accelerate energy storage deployment across the region.”
Building The Alliance
Unlike traditional industry alliances formed by companies first, FESSIA was established to help build the market and policy frameworks needed for the next phase of Southeast Asia’s energy transition. The alliance is now bringing together industry leaders to help shape the future of system flexibility and energy storage across ASEAN.
At its official launch in Singapore, FESSIA welcomed its inaugural members, including Trinasolar, Swiss sodium-ion energy storage systems developer PHENOGY, and strategic and technical partners Arup, DNV, and The Carbon Trust.
Helena Li, Executive President, Trinasolar, said: “Asia is at the epicenter of the global energy storage narrative. Surging power demand from the clean energy transition, digitalization, and data center growth necessitates immediate BESS deployment. Technology alone cannot drive comprehensive transformation. Robust policy frameworks, transparent market incentives, and a collaborative regional agenda are essential.”
Hum Wei Mei, Head of Asia , Carbon Trust, said: “The Carbon Trust is pleased to join as an inaugural member of FESSIA and looks forward to supporting the development of modern, flexible electricity grids underpinned by storage, digitalization and system integration. Critical developments like these are the key to unlocking the next phase of clean energy growth in Southeast Asia.”
Jhan Chan, Southeast Asia Energy Leader, Arup, said: “As grid constraints become an increasingly critical challenge, Arup sees energy storage as key to enabling higher renewable penetration and supporting a resilient, low-carbon energy transition across ASEAN.”
Peter E. Braun, CEO and Founder of PHENOGY, said: “ASEAN’s energy transition is a shared system challenge. Progress will depend on strong collaboration between industry, policymakers, and utilities to build resilient, future-proof energy systems that support growth, energy security, and sustainability across the region.”
The report launch and brand unveiling took place during Temasek’s Ecosperity Week 2026 in Singapore, where FESSIA hosted a partner event featuring leading energy transition figures, including Michael Liebreich, host of the Cleaning Up podcast.
The full report is undergoing peer review and will be available soon.
The report’s key findings are available for download at https://bit.ly/4eVlA5U.