THE FUTURE OF ENERGYSTORAGE IN THE INDO-PACIFIC By Nofri Yenita Dahlan and Nguyen Duc Tuyen powering transitions The Future of Energy Storage in the Indo-Pacific Nofri Yenita Dahlan and Nguyen Duc Tuyen This report was produced by the National Bureau of Asian Research with supportfrom the Economic Research Institute for ASEAN and East Asia (ERIA). the national bureauofasian research The NBR Special Report provides access to current research on special topics conducted bythe world’s leading experts in Asian affairs. The views expressed in these reports are thoseof the authors and do not necessarily reflect the views of other NBR research associates or The National Bureau of Asian Research helps decision-makers better understand Asia andcraft concrete, actionable policy. NBR is an independent research institution based in Seattleand Washington, D.C. We bring world-class scholarship to bear on the evolving strategic Our research is conducted by a global network of specialists and tackles critical issuesidentified by stakeholders in anticipation of future challenges. The findings are a resultof independent scholarship and do not reflect institutional perspectives. Our rigorous Established in 1989, NBR is a legacy organization of Senator Henry M. Jackson, who foresawthe national need for an institution to study and inform public policy on Asia in both thepublic and private sectors. Building on Senator Jackson’s bipartisan approach, NBR engagespolicymakers looking for reliable Asia expertise through sustained interaction in high-trust,nonpartisan settings. Our experts and research have shaped congressional legislation and NBR receives support from foundations, corporations, government (including foreigngovernments of allies and liberal democracies), and public agencies, and philanthropicindividuals. NBR reserves the right to publish findings. We do not undertake classified or Todownload issues of the NBR Special Report,please visit the NBR websitehttp://www.nbr.org. This report may be reproduced for personal use. Otherwise, the NBR Special Report maynot be reproduced in full without the written permission of NBR. When information from This is the one-hundred-and-nineteenth NBR Special Report. NBR is a tax-exempt, nonprofit corporation under I.R.C. Sec. 501(c)(3), qualified to receivetax-exempt contributions. © 2025 by The National Bureau of Asian Research. For further information about NBR, contact: The National Bureau of Asian ResearchOne Union Square600 University Street, Suite 1012Seattle, Washington 98101 206-632-7370 Phonenbr@nbr.org E-mailhttp://www.nbr.org nbr special report#119 powering transitionsThe Future of Energy Storage in the Indo-Pacific TABLE OF CONTENTS 1Advancing Battery Energy Storage Systems (BESS) in the Asia-Pacific:Opportunities, Challenges, and Strategic Pathways Nofri Yenita Dahlan 23Scaling Up Hydrogen Energy in the Indo-PacificNguyen Duc Tuyen the national bureauofasian research nbr special report #119|september 2025 Advancing Battery Energy Storage Systems(BESS) in the Asia-Pacific: Opportunities, Nofri Yenita Dahlan NOFRI YENITA DAHLANis Professor of Electrical Engineering at Universiti TeknologiMARA and Director of the Solar Research Institute in Malaysia. Dr. Dahlan is alsoa Nonresident Fellow at the National Bureau of Asian Research. She can be reached EXECUTIVE SUMMARY This essay offers a comprehensive overview of battery energy storage systems (BESS)deployment and the investment landscape in the Asia-Pacific, identifies key challenges and MAIN ARGUMENT The global shift toward clean energy is accelerating, with the Asia-Pacific region emergingas a key player in the energy transition. In recent years, countries across the region haverapidly expanded their deployment of renewable energy, particularly solar. This trend isdriven by falling technology costs, supportive policies, and growing access to internationalclimate finance. However, the variable nature of solar and wind energy has underscored thecritical need for energy storage solutions to ensure grid stability and reliability. BESS arenow central to enabling a flexible, resilient, and low-carbon power system. The Asia-Pacific POLICY IMPLICATIONS •To best utilize BESS in achieving the clean energy transition, governments shouldestablish clear and stable regulatory frameworks to de-risk BESS investments.•Expanded public-private financing mechanisms to lower capital costs and scaledeployment can and should play a key role in facilitating BESS development and adoption.•As BESS gains greater usage, regional cooperation for BESS supply chains, standards, The global shift toward clean energy has been gaining significant momentum, and theAsia-Pacific region is emerging as one of the most dynamic arenas for this transition.Characterized by rapid economic growth, urbanization, and rising energy demand, theregion includes both major energy producers and consumers. Home to approximately 60% of the wor