The key to renewable energy resilience in Southeast Asia

THE International Energy Agency’s 2024 report has revealed a stark reality: global growth in electricity demand is expected to average 3.4 percent between 2024 and 2026. More than 60 percent of The world’s energy comes from fossil fuels. Key economies such as the United States, China and Japan rely on fossil fuels for more than half of their energy supply.

The situation is even more dire in Southeast Asia, where 80% of the energy mix is ​​dominated by these limited resources. This alarming scenario requires immediate action to avert an imminent energy crisis and the adverse effects of climate change, raising concern and motivating us to act.

Meeting growing energy demand with BESS

As the world moves towards a sustainable future, the need for innovative energy solutions has never been more pressing. This is where battery energy storage systems (BESS), combined with renewable energy sources, are poised to revolutionize the way we harness and use renewable energy sources.

In an era where cities are becoming smarter and environmental sustainability is a top priority, traditional reliance on non-renewable energy sources like fossil fuels is no longer sustainable. Although abundant and clean, solar and wind energy face intermittent limitations and grid stability. BESS, a revolutionary technology, offers a versatile and efficient solution to bridge the gap between energy production and consumption.

BESS is able to complement renewable energy sources such as solar energy, ensuring a reliable and flexible power supply.

During the day, when solar power generation reaches its peak, the excess energy generated is stored in batteries for later use. Once the battery is full, excess energy is sold back to the electricity grid. This stored energy can then be deployed during periods of low solar production or high demand, effectively balancing the grid and reducing reliance on fossil fuels. When the battery energy is exhausted, it will be powered by the electricity grid.

BESS can provide a stable and constant energy supply despite disruptions or outages. For businesses, especially those that have already invested in solar energy, BESS helps optimize energy consumption, reduce costs and strengthen sustainability efforts.

How BESS can impact Southeast Asia

In a region historically dependent on imported fossil fuels, BESS offers a decentralized energy model that allows nations to harness their abundant renewable resources.

Furthermore, the adoption of BESS provides Southeast Asia with an opportunity to overcome the limitations of traditional energy infrastructure and embrace a sustainable energy future. As the region grapples with rapid urbanization and industrialization, BESS offers scalable modular energy solutions that quickly adapt to changing needs.

As many Southeast Asian countries embark on the transition to cleaner energy and roll out roadmaps to guide their factories and targets, solar power and BESS convergence are emerging as a viable solution to start their transition.

By allowing businesses to engage in energy arbitrage – purchasing energy at lower prices during off-peak periods and storing it during peak periods – BESS promotes economic efficiency and sustainability.

For example, ENGIE’s collaboration with Luik Natie in the Port of Antwerp shows the tangible impact of BESS deployment, with significant energy savings achieved through the integration of BESS, solar panels and wind turbines . This enabled Luik Natie to produce 1.7 MWp of photovoltaic energy generated by 5,000 solar panels, increasing the total on-site renewable generation capacity to 4.7 MW.

While existing energy infrastructure has served as a cornerstone, it now presents challenges in global energy transition efforts. By complementing these systems with BESS technology, countries can strengthen their resilience and reduce their vulnerability to market volatility while aligning with carbon emissions reduction targets.

As Southeast Asia charts this path of transformation, collaboration between governments, industries and communities becomes paramount. Stakeholders can accelerate the adoption of BESS through innovation, investment and knowledge sharing, driving a cleaner and more inclusive energy future.

The writer is responsible for solar energy for commercial and industrial projects, ENGIE Southeast Asia