The Southeast Asian market is rapidly emerging as a focal point within the global energy storage sector. Characterized by dispersed demand, the region’s energy storage orders are generally small in scale but high in volume, with a particularly notable surge in residential energy storage demand. This trend presents significant opportunities for Chinese energy storage companies seeking expansion overseas.
Several Chinese lithium-ion battery manufacturers, including EVE Energy, CATL, REPT, Gotion High-tech, Sunwoda, Lishen Battery, and Far East Battery, have already established a foothold in Southeast Asia. Companies involved in energy storage, such as Sungrow, Envision Energy, Hithium, and Wincle, have also achieved solid growth in the region.
The International Energy Agency (IEA) recently highlighted that Southeast Asia must increase its clean energy investment to $190 billion by 2035—approximately five times the current investment level—to meet its climate goals. Over the next few years, electricity demand across Southeast Asia is expected to grow at an annual rate of 4%, with clean energy sources, including wind, solar, and geothermal, projected to supply over one-third of the region’s energy demand growth by 2035. Despite Southeast Asia’s contributions to 6% of global GDP, 5% of global energy demand, and housing 9% of the world’s population, the region currently attracts only 2% of global clean energy investments.
An IEA representative further stated that Southeast Asia is set to become one of the primary drivers of global energy demand in the coming decade, potentially accounting for one-quarter of global demand growth.
According to research from CICC, regions like the US, China, and Europe—where variable renewable energy (VRE) penetration is between 10% and 20%—have already seen rapid growth in energy storage demand. However, in Southeast Asian countries like Thailand, the Philippines, Malaysia, and Indonesia, VRE penetration remains below 10%, indicating that energy storage demand in the region is still in its early stages. This presents a significant growth opportunity for Chinese energy storage companies.
Recent market developments demonstrate this potential. Sungrow, for instance, signed an agreement with Malaysian green energy company MSR-GE to supply a 100MW/400MWh battery energy storage system in Sabah, Malaysia. The project is scheduled to begin construction in September this year and complete by June next year, potentially becoming one of the largest energy storage projects in Southeast Asia. Additionally, in March this year, Sungrow partnered with Thailand’s private power producer GULF to supply solar inverters and liquid-cooled energy storage systems (utilizing PowerTitan technology) over the next seven years for projects totaling 3.5GWp.
Meanwhile, Wincle has entered partnerships in Vietnam and the Philippines, securing orders for energy storage products. Envision Energy completed the delivery of Singapore’s first 100MW-level energy storage facility—the Jurong Island storage project—positioning itself as a leading example of Chinese energy storage companies expanding globally.
In the residential energy storage sector, Chinese company Deye reports a market share of approximately 60% in Southeast Asia. The company’s half-year report further noted an explosion in demand across emerging markets, including Southeast Asia, in the first half of this year.
Due to Southeast Asia’s fragile electricity infrastructure and frequent power outages, demand for residential storage solutions remains strong. With lithium-ion battery prices continually declining, residential storage products are now more affordable for Southeast Asian households. For example, a 10kWh residential storage system typically sells for between 15,000 and 20,000 RMB.
As the world’s largest lithium-ion battery producer, China possesses substantial manufacturing capacity for residential storage products, enabling it to provide Southeast Asian markets with various storage capacities and configurations. For instance, Hithium introduced the Hero EE series, a cost-effective solution for grid-deficient and off-grid areas in Southeast Asia and Africa. Released in June, the HeroEE 2 residential storage product features a 2kWh capacity with a 314Ah battery cell and, when paired with solar panels, can achieve a levelized cost of storage around $0.05 per kWh (approximately 0.35 RMB).
However, as more Chinese energy storage companies enter the Southeast Asian market, competition is intensifying. Industry insiders revealed that “channel resources are crucial for doing energy storage business in Southeast Asia. Price competition is fierce, and while the market is large, profit margins remain thin.”
