How much does an ASEAN energy storage power supply cost

The ASEAN energy storage landscape is undergoing a significant transformation driven by the region's ambitious renewable energy goals and growing energy demands. The ASEAN Centre for Energy (ACE) projects the region's total final energy consumption to increase by 146% by 2040, highlighting the urgent need for robust energy storage systems.

Across ASEAN, solar and wind energy now offer some of the lowest Levelised Costs of Electricity (LCOE). For solar PV, LCOEs range from US$64 to US$246/MWh, with Vietnam achieving some of the lowest costs in the region. Wind power likewise presents significant potential.

To facilitate investments in renewables in ASEAN, it is critical to overcoming the barriers in renewable energy legislation, energy governance, and business environment. 28 Cooperation through the ASEAN Power Grid brings economic benefits to the region as a whole, and thus improves the affordability for energy transition.

Five ASEAN countries rely on coal for more than 40% of their power production. All countries combined, 44% of the electricity produced comes from coal in the region, with electricity-related CO₂ emissions rising 60% since 2015. Figure 1: CO2 intensity of electricity generation - 2023 Source: Enerdata - Global Energy & CO 2 data, Power Plant Tracker

The declining cost of renewable energy is unlocking significant potential for Southeast Asia's power sector. Vietnam, for instance, saw its solar capacity jump from 4.9 GW in 2019 to 17 GW in 2023. Across ASEAN, solar and wind energy now offer some of the lowest Levelised Costs of Electricity (LCOE).

Across scenarios, generation infrastructure will require a cumulative investment equivalent to 29.6%–44.6% of ASEAN's 2018 GDP (Gross Domestic Product). The investment requirements for the expansion plan, however, are unevenly distributed across countries, especially with the ambition to achieve a carbon-neutral power sector.