Analyst Insight: Asia Pacific Energy Storage Update

Energy storage systems (ESSs) provide critical services to the grid, including generation capacity, frequency regulation, and other ancillary services, making them essential enablers of the energy transition. As renewable sources are further integrated into the energy mix, new and innovative storage technologies will be required to manage the supply and demand imbalances associated with a renewables-powered grid. As a result, the storage market has witnessed significant advances in recent years as new opportunities emerge across a multitude of industry sectors and applications.

Many technologies covered in this Analyst Insight have existed for decades and achieved significant market penetration. Lithium-ion (Li-ion), for example, has become the default technology for new storage projects globally. Other technologies, such as flow batteries, pumped hydro storage, and advanced lead-acid batteries are providing competition. The wide range of available technologies allows different systems to compete and combine to provide increasingly important grid flexibility services. As the market matures and diversifies, and the demand for storage services grows, technological innovations will proliferate to expand this suite of services.

This Guidehouse Insights Energy Storage Tracker Analyst Insight provides an overview of the trends and opportunities in the Asia Pacific region, including market inflection trends, market drivers and barriers, a market overview of the Asia Pacific region, notable ESS projects in the Asia Pacific region, China’s 14th Five-Year Plan (FYP), Energy Storage Tracker highlights over the past two years, and conclusions and key recommendations for stakeholders in the energy storage industry. The report covers data from the Energy Storage Tracker released in 4Q22.