Enabling Policies for Promoting Battery Energy Storage in ASEAN
Tuesday, 12 Jan 2021

Category

Policy Brief

Author

Monika Merdekawati, Beni Suryadi, Wiratama Dhaneswara Sungkono, Septia Buntara Supendi

Key Points

To reveal the enabling policies of battery energy storage application for higher renewable energy systems in ASEAN, this policy brief identifies the challenges and opportunities in each AMS by reviewing the current development and regulatory framework.

  • The renewables-based transformation would need a massive investment in electricity infrastructure to maintain the balance of supply and demand.
  • ASEAN has adequate policies to positively influence the attractiveness of energy storage through renewable energy investment, both on-grid and off-grid.
  • However, ASEAN has many untapped markets for energy storage applications.
  • Hence, to maximise the market potential and accelerate the low carbon transition in ASEAN, this policy brief recommends several enabling policies for energy storage.
  • To leverage the market potential and accelerate the transition to clean energy in ASEAN, the following recommendations for energy storage policies are made:
    1. In vertically integrated markets, should be considered as the alternative to extending the transmission infrastructure in the national power development plan,
    2. In wholesale markets, specific policies should be issued that address energy storage in order to clearly regulate the responsibilities of each stakeholder in the power industry,
    3. Battery energy storage should be incentivised in the renewable energy procurement process (e.g. auction, direct appointment),
    4. Renewable energy off-grid projects with battery energy storage should be incentivised as they substitute the need for grid extensions or fossil-fuel supply,
    5. Policies should be enacted to encourage behind-the-meter applications, especially in commercial and industrial buildings,
    6. Research and Development (R&D) funding should be created for the development of battery energy storage to enhance manufacturing capability in ASEAN

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