Storage in the energy transition in Asia-Pacific | PFI
As Asia gears up for a shift to renewable energy, energy storage has come to the fore. But the transition to cleaner power can be a bumpy ride. To navigate the uncertain
PHOTO: BT FILE [SINGAPORE] Electricity prices in Asia will be influenced more and more by the costs of integrating renewable energy, as well as battery storage solutions, into the power grid, indicated a recent report by BMI, the country risk and analysis research arm of Fitch Solutions.
In comparison, hydro was around $25 USD per MWh in Lao PDR, and solar between $44-50 USD per MWh in Viet Nam and Thailand. Wind costs $43-73 USD per MWh in the Philippines, Thailand and Viet Nam. Across Southeast Asia, spatial and temporal analyses demonstrate that wind and solar power generation complement each other during different months.
The Philippines has become the most policy driven battery storage market in Southeast Asia. Through Green Energy Auction Program (GEA) 4, the Department of Energy has integrated storage as a mandatory element of large-scale renewable tenders. This decision has created a multi gigawatt pipeline of projects that have a clear commercial path.
The costs of thermal coal will have a diminishing influence on electricity prices in Asia, as the share of power generation by renewable energy sources is expected to go up over the next decade, said BMI. Instead, electricity prices will increasingly reflect renewables integration, battery energy storage systems, and grid infrastructure costs.
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