The Role of Battery Storage in APAC's Decarbonisation Strategies

The role of battery storage in driving the decarbonisation efforts across the APAC region by enhancing grid stability and by providing battery storage solutions.

FREMONT, CA: Energy, vital for human activities and economic growth, has long relied on fossil fuels. Solar and wind power, cleaner and more affordable, are gaining ground. Yet, their intermittent availability poses challenges. Battery energy storage systems (BESS or storage batteries) offer a solution by stabilising renewable energy, bolstering grid infrastructure, and curbing waste. Hybrid energy storage projects promise to expedite renewable energy adoption, enabling flexible energy distribution and improved returns for investors.

BESS is advancing rapidly, with certain battery technologies capable of storing energy for longer durations, ranging from 8 to 12 hours. Notably, the cost of lithium-ion batteries has plummeted by over 80 per cent in the past decade, primarily due to streamlined production processes. This cost decline mirrors the trajectory of solar PV, making it one of the most cost-effective electricity sources. However, mobilising investment in supporting infrastructure remains challenging due to policy uncertainties in some markets, emphasising the need for transparent targets and regulatory frameworks to accelerate progress.

In the Asia-Pacific (APAC) region, some regions faced constraints with unlimited curtailment despite abundant solar and wind resources. Overloaded transmission lines in these areas created bottlenecks, hampering the adoption of renewable energy.

BESS emerged as a crucial solution, capable of capturing surplus energy from solar and wind farms, thereby smoothing energy supply, reducing curtailments, and aligning with decarbonisation goals. Similarly, in a region with vast renewable energy resources, developers long grappled with regulatory uncertainties. A proposed rule change seeks to provide clarity on the R1 registration process, which is essential for project developers and allows generators to sell metered energy to retail customers. This change represents the first in a series of broader modifications to the connectivity roadmap, soon to be unveiled by regulators.

APAC region has set an ambitious target of achieving 36-38 per cent of its electricity generation from renewable sources by 2030, promising substantial opportunities for the industry. Moreover, some regions are actively investing in research and development to enhance BESS using innovative materials like zinc and sodium, aiming to boost its performance, safety, and cost-effectiveness.

While substantial efforts and investments are underway, tample room remainsto expedite the energy transition. The deployment of battery storage technology will play a pivotal role in elevating renewable energy utilisation. Vertically integrated players, combining development, financing, asset management expertise, and technical capabilities, are well-positioned to seize early market opportunities and drive this vital facet of the energy transition forward.