Overseas promotion of energy storage power supply

Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.

According to public data5, only 2% of new energy storage projects that were put into operation in 2022 were located in Southeast Asia. The major energy storage markets in the region include Malaysia, Singapore, Vietnam, the Philippines, and Indonesia.

Globally, energy storage project development is increasingly driven by the utility-scale segment, with mandates and targeted auctions driving gigawatt-hour projects in markets like China, Saudi Arabia, South Africa, Australia and Chile.

In the future, as global demand for clean energy continues to rise and China's new energy industry continues to gain in competitiveness, it is expected that China will export a greater volume of new energy products to Southeast Asia, although it needs also to address the risks arising from trade policy uncertainty.

The support from the Chinese government not only lowers the threshold and risk of "going global" for new energy enterprises, but also promotes international technology exchange and cooperation.

For inverters, China's exports to Southeast Asia have grown slowly, with an average annual rate of around 16.6% between 2019 and 2023, though the share of the country's total inverter exports has declined from 8.7% to 4.4%. What should be noted is that China's overall photovoltaic product exports are increasing in quantity but declining in price.