How to introduce BESS (Battery Energy Storage System) in Thailand? Strategy for entering the Southeast Asian market

Thailand aims to achieve carbon neutrality by 2050 and net zero by 2065, and is accelerating the introduction of renewable energy and electricity storage systems. In this article, I will explain in detail the current state of the Thai market and entry strategies for businesses considering introducing BESS in Southeast Asia.

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What is BESS? Basic knowledge of electricity storage systems in Thailand

BESS is an important technology that stabilizes power grids and realizes efficient use of renewable energy. In Thailand, implementation is being promoted under the leadership of the government.

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The mechanism and main components of BESS (Battery Energy Storage System)

BESS (Battery Energy Storage System) is a system that stores electricity in a storage battery and supplies it when needed. The main components are composed of lithium-ion battery cells, battery management systems (BMS), power conversion systems (PCS), and energy management systems (EMS).

PTT, a major Thai energy company, visited Beta+ Thailand's BESS test center on February 20, 2025 to conduct product selection and evaluation tests related to residential and commercial energy storage.

https://www.a-beta.net/

Types and technical specifications of BESS adopted in Thailand

The mainstream BESS used in Thailand is lithium-ion batteries, and lithium iron phosphate (LFP) batteries are particularly widely used. LFP batteries are characterized by high safety, a long life span of 3,000 cycles or more, and a low risk of thermal runaway.

In Thailand's largest BESS project, a system with a capacity of 45 mW/136.24 MWh has been introduced, and a round-trip efficiency of 90.8% has been achieved. https://www.sciencedirect.com/science/article/pii/S2352152X2500564X

5 benefits BESS brings to the Thai electricity market

BESS has brought the following specific benefits to the Thai electricity market.

1. Power grid stabilization: frequency adjustment and voltage control to absorb fluctuations in renewable energy
2. Peak cut: Reduces demand charges by supplying stored electricity during times of high demand
3. Promoting the integration of renewable energy: Utilizing surplus electricity from solar power generation at night
4. Backup power during power outages: Continued power supply to critical facilities
5. Reducing Electricity Charges: Optimizing Electricity Costs Using the Hourly Rate System

Electricity rates in Thailand are 4.293 baht/kWh (0.132 US dollars) for residential use and 4.300 baht/kWh for business use as of 2024/12.
‍https://www.globalpetrolprices.com/Thailand/electricity_prices/

Current Status and Future Prospects of the Thai BESS Market

The Thai government is pursuing an aggressive energy policy, and the BESS market is rapidly expanding. It is also attracting attention as a major market in the Southeast Asian region.

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Thai Government's Energy Policy and BESS Implementation Targets (2025-2032)

Thailand's Energy Policy and Planning Authority (EPPO) approved the initial scope of the 2023-2032 BESS Promotion Action Plan in February 2023. This action plan aims to create a BESS industry ecosystem and large-scale demand, and includes strategies relating to the following four main aspects.

1. Promoting the use of BESS: integration of BESS into existing renewable energy projects
2. Migrating from a non-farm PPA structure to a partial farm or farm PPA structure
3. Promoting BESS integration in greenfield projects
4. Strengthening market competitiveness and supporting BESS manufacturers and operators

The Thai government has set the promotion of clean energy and securing domestic energy sources as priority issues in its 2025 energy policy.
‍https://www.lexology.com/library/detail.aspx?g=79f8d292-f3d7-401f-b1d1-f131d8649b44 https://solarquarter.com/2025/02/11/thailands-energy-policy-2025-focus-on-clean-energy-and-domestic-energy-security/

Market Size and Growth Forecast: Thailand's Position in Southeast Asia

Thailand occupies an important position in the BESS market attractiveness analysis of the five Southeast Asian countries (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam). The Thai government has set a target of making 30% of automobile production zero-emission vehicles by 2030, and is attracting large-scale investment in battery manufacturing.

Leading Chinese inverter manufacturer Sungrow has partnered with Thai renewable energy company Super Energy to provide a comprehensive solution including a 49.01MW photovoltaic inverter and a 45MW/136.24MWh BESS. This is considered one of the largest single BESS projects in Southeast Asia.
https://www.sciencedirect.com/science/article/abs/pii/S136403212300953X https://www.energy-storage.news/sungrow-is-supplier-to-thai-solar-plus-storage-project-featuring-southeast-asias-biggest-bess/

Analysis of key players and competitive environment

Major domestic and international companies have entered the BESS market in Thailand.

• Delta Electronics Thailand: We provide lithium battery energy storage systems and deploy systems with high energy density, battery management, and multi-layer safety protection features
• ITL Engineering: A leading large-scale energy storage system company with a track record of commercial ESS projects in Thailand
• Hitachi ABB Power Grids: Providing BESS and control technology for a 214MW industrial microgrid project

These companies provide products that comply with international standards in Europe, the United States, and Japan.

https://www.deltathailand.com/en/products/Infrastructure/Energy/ESS/BESS https://www.itl-engineering.com/service-bess https://www.energy-storage.news/hitachi-abb-power-grids-battery-storage-to-be-used-at-214mw-industrial-microgrid-in-thailand/

BESS related laws and regulations and support systems in Thailand

The Thai government is promoting the growth of the BESS market by improving the regulatory environment and expanding support systems. I will explain the systems that are important for businesses.

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Detailed explanation of the BESS Action Plan (2023-2032)

The BESS Promotion Action Plan (2023-2032) approved by Thailand's Energy Policy and Planning Authority (EPPO) is a comprehensive strategy to accelerate the development of the BESS industry. The plan plans to incentivize the market through increased demand from the government side.

As a specific measure, we are shifting renewable energy power purchase agreements (PPAs) from non-farm structures to partial farms or farm structures, and BESS integration into existing renewable energy projects is being promoted.
‍https://www.lexology.com/library/detail.aspx?g=79f8d292-f3d7-401f-b1d1-f131d8649b44

Business opportunities through the FIT system and Direct PPA

One of the most significant updates to Thailand's renewable energy system in 2024 is the introduction of direct PPA (power purchase agreements). The scheme allows private companies to directly purchase up to 2,000 MW of electricity from renewable energy producers through transmission grids operated by the Electricity Authority.

Under the FiT (fixed price purchase) system, 3.67 GW of additional capacity is scheduled to be procured between 2022 and 2030, and the breakdown is 2,632 MW of solar power, 1,000 MW of wind power, 6.5 MW of biogas, and 30 MW of industrial waste. However, combined solar and BESS projects have already been excluded because they have already met their purchase targets.
‍https://www.wfw.com/articles/thailand-powers-up-new-renewable-energy-incentives-and-opportunities-in-2024/

Permit and approval process and necessary procedures

The Energy Regulatory Commission (ERC) has jurisdiction over licensing of BESS projects in Thailand. ERC has the authority to adjust targets on an annual basis, and will make adjustments based on remaining capacity in line with the Electric Power Development Plan 2018-2037 Revision 1 (PDP2018 Rev.1).

Project applicants are required to submit a notice of participation along with a proposed deposit of 1,000 baht per kW.
‍https://www.wfw.com/articles/thailand-powers-up-new-renewable-energy-incentives-and-opportunities-in-2024/

Economic analysis of implementing BESS: ROI and payback period

The economy of a BESS investment is determined by the balance between electricity bill reduction effects and initial investment costs. We will analyze it based on actual data in the Thai market.

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Breakdown of BESS investment costs in Thailand

BESS costs in the global market have dropped drastically, and the average price of a 20-foot DC container in the US market in 2024 was 148 US dollars/kWh, down 18% from 180 US dollars/kWh in 2023. In China, the 2024/12 bid achieved a record low average price of 66.3 US dollars/kWh.

The main cost components of BESS are as follows:

• Battery pack (approximately 40-50% of overall cost)
• Power conversion systems (PCS)
• Balance of Systems (BOS)
• Installation/construction costs
• Operation and maintenance costs (20 years)

In the Southeast Asian market, cost reduction and longer life have been achieved by adopting lithium iron phosphate (LFP) batteries.
‍https://www.energy-storage.news/bess-prices-in-us-market-to-fall-a-further-18-in-2024-says-cea/
‍https://www.ess-news.com/2024/12/09/powerchina-receives-bids-for-16-gwh-bess-tender-with-average-price-of-66-5-kwh/

How to calculate the profit model and payback period (2-5 years)

The results of the 136 MWh BESS project in Thailand have demonstrated that an average annual plant utilization rate of 54.5% can be achieved, and steady state contract electricity can be supplied to cover peak demand for approximately 13 hours per day.

The following factors must be taken into account in calculating the payback period:

• The effect of reducing electricity costs due to peak cuts
• Reducing demand charges (industrial applications)
• Increase in self-consumption rate of renewable energy
• Revenue from system stabilization services (future potential)
  ‍https://www.sciencedirect.com/science/article/pii/S2352152X2500564X

Electricity bill reduction effects and demand charge countermeasures

The electricity rate system in Thailand is 4.293 baht/kWh for residential use and 4.300 baht/kWh for business use, and with the introduction of BESS, it is possible to optimize electricity costs using the hourly rate system.

In industrial applications, reducing demand charges (charges for maximum power demand) is a major economic advantage. By utilizing BESS, it is possible to reduce the purchase of electricity from the grid during peak periods and reduce basic charges.

https://www.globalpetrolprices.com/Thailand/electricity_prices/

Thai BESS implementation case and success factors

Multiple large-scale BESS projects are in operation in Thailand, and it is a model case for the Southeast Asian region. Let's take a closer look at actual use cases.

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45mW/136.24MWh Southeast Asia's largest project details

Chinese inverter manufacturer Sungrow has provided Thai renewable energy company Super Energy with a comprehensive solution including a 49.01MW photovoltaic inverter and a 45MW/136.24MWh BESS. This project is regarded as one of the largest single BESS in Southeast Asia.

Project features:

• By adopting liquid cooling technology, logistics and installation costs have been reduced
• Extended system life
• High level of protection suitable for Thailand's hot and humid climate
• Fully integrated system including energy management system (EMS) and monitoring

The president of Super Energy has rated the project as “a major step forward in technology to provide Thai people with 24/7 solar power.”
‍https://www.energy-storage.news/sungrow-is-supplier-to-thai-solar-plus-storage-project-featuring-southeast-asias-biggest-bess/

Examples of use in industrial microgrids (214 MW)

Hitachi ABB Power Grids provided BESS and control technology for an industrial microgrid project integrating 214 MW of distributed energy resources at Saha Industrial Park in Sriracha on the southwestern coast of Thailand.

This project includes:

• cogeneration gas turbines
• Rooftop and floating solar power
• battery energy storage system
• Digital control platform “e-Mesh”

Digitally enabled microgrids integrate disparate distributed resources and manage and optimize power output in real time across industrial parks.
‍https://www.energy-storage.news/hitachi-abb-power-grids-battery-storage-to-be-used-at-214mw-industrial-microgrid-in-thailand/

Achievements of photovoltaic+BESS hybrid systems

The introduction of hybrid systems combining solar power generation and BESS is progressing in Thailand. The 40-foot container solution designed by SCU for Thai customers realizes the following specifications:

• PCS Output:250kW
• MPPT module: 50kW
• LFP battery capacity: 230kWh (3 battery cabinets)
• EV charging stack: 240 kW

The system stores electricity generated by solar power generation in BESS and supplies it to EV chargers as needed. Charging during times when electricity charges are low and discharging during high hours reduces charging costs and achieves peak cutting and valley filling.
‍https://www.scupower.com/case/thailand-solar-bess-charging-station-all-in-one-solution/

BESS market comparison and regional strategies in Southeast Asian countries

The BESS market in Southeast Asian countries is at different stages of development, and understanding the characteristics of each country will lead to successful regional strategies.

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Success Factors Learned from Precedent Cases in Vietnam and the Philippines

Vietnam is the largest renewable energy market in the ASEAN region, second only to Indonesia and the Philippines. With GEAPP's cooperation, Vietnam's first BESS pilot project was realized. The project was developed in collaboration with Vietnam Electric Power (EVN), Asian Development Bank (ADB), Rocky Mountain Institute (RMI), and Vietnam Energy Research Institute.

In the Philippines, the world's largest photovoltaic+BESS project is underway, and a 20-year power supply agreement (PSA) has been signed by combining 3.5 GWp of solar power generation capacity with 4.5 GWh of battery storage. https://www.theedgesingapore.com/views/environmental-social-and-governance/ambition-action-mobilising-climate-finance-southeast-asia

Market opportunities and entry barriers in Indonesia and Malaysia

Indonesia needs an annual investment of approximately 62 billion US dollars to achieve its net zero target. The 60 MW Tembesi floating solar power plant, jointly developed by PT Sarana Multi Infrastruktur (PT SMI) and GeApp, has been installed across Batam, Galang, and Lempang.

In Malaysia, the BESS project with a storage capacity of 400 MWh, which is the largest in Sabah, is scheduled to be completed by 2030/6. This project marks Malaysia's milestone in addressing intermittent solar power generation.
‍https://www.theedgesingapore.com/views/environmental-social-and-governance/ambition-action-mobilising-climate-finance-southeast-asia
‍https://ember-energy.org/latest-insights/asean-insights-2024/state-of-transition/

Business opportunities brought about by ASEAN grid integration

ASEAN is promoting interconnectivity between electricity and gas, and regional grid projects such as the Laos-Thai-Malaysia-Singapore Electric Power Integration Project (LTMS-PIP) and the Borneo-Indonesia-Malaysia-Philippines Electric Power Interconnection Project (BIMP-PIP) are underway.

These projects aim to improve energy security and sustainability throughout the region by utilizing the diverse energy resources of each country, such as Indonesia's solar power potential (up to 2,900 GW), Laos's hydroelectric power generation capacity, and Vietnam's offshore wind power.
‍https://www.weforum.org/stories/2024/07/south-east-asia-energy-transition/

Issues and solutions when entering the BESS business

There are technical and financial challenges in entering the BESS business, but they can be overcome with an appropriate strategy. We will present practical solutions.

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How to reduce initial investment costs and financing options

Economies of scale play an important role in the BESS market. The following cost reduction trends have been identified in the 2024 global market.

• Battery pack price: drops to 60-70 US dollars/kWh in the Chinese market
• Further decline to 50-60 US dollars/kWh is predicted by 2030
• Reduction in manufacturing and transportation costs by standardizing 5MWH class container-type BESS

In terms of financing, it is possible to use concessional loans from international development finance institutions (World Bank, Asian Development Bank, etc.) and green bonds.
https://www.energy-storage.news/cost-shipping-energy-density-driven-convergence-to-5mwh-bess-form-factor-cea/

Securing technical personnel and local partnership strategies

GIZ Thailand held a technical workshop on BESS on 2025/6/11, and representatives from Thailand's major energy agencies (EPPO, ERC, EGAT, PEA, ENTEC) participated. At this workshop, knowledge was shared on BESS's role in system stability and energy transition.

The following approaches are effective in developing technical personnel.

• Technology transfer through cooperation with local energy agencies
• Practical learning through a joint project with EGAT (Electricity Generating Authority of Thailand)
• Conducting technical sessions with international experts

https://www.thai-german-cooperation.info/en_US/giz-hosts-workshop-on-battery-energy-storage-systems-bess-to-support-thailands-power-system-security-and-energy-transition/

Risk management: natural disaster countermeasures and the use of insurance

In the Southeast Asian region, frequent natural disasters, such as typhoons, pose risks to infrastructure and business plans. The BESS project in Thailand has adopted a system with an IP67 level of protection and fire mitigation measures.

The number of BESS safety incidents worldwide decreased drastically in 2024, with only 5 serious accidents (3 in the US, 1 in Japan, and 1 in Singapore). This shows the maturity of technology and improved safety measures. https://www.sourceofasia.com/southeast-asias-renewable-energy-vietnam-philippines-thrive/
‍https://www.ess-news.com/2025/01/29/voltas-2024-battery-report-falling-costs-drive-battery-storage-gains/

Practical advice for a successful BESS business in Thailand

Understanding local conditions and building the right partnerships is essential for success in the Thai market. We offer practical advice. Five points for local partner selection The following factors must be considered when selecting a local partner for a successful BESS business.

1. Technical Capabilities and Achievements: Companies with a track record of commercial ESS projects, such as Delta Electronics Thailand and ITL Engineering
2. Compliance with international standards: Ability to provide products and services that conform to European, American, and Japanese standards
3. Local networks: Relationships with power agencies such as EGAT, PEA, MEA, etc.
4. Maintenance/maintenance system: Long-term support system for a system life of 25 years or more
5. Financial strength and creditworthiness: Ability to carry out large-scale projects

ITL Engineering provides “customized ESS solutions tailored to customer business needs,” and clearly states that it emphasizes “25 years or more system life, warranty, and maintenance.”

https://www.itl-engineering.com/service-bess

Roadmap from project launch to operation

A typical roadmap for a BESS project in Thailand is as follows.

Planning phase (6-12 months)

• Conduct a feasibility study
• Preparing an ERC application and preparing a proposal deposit (1,000 baht/kW)
• Environmental impact assessment (for category B projects)

Construction phase (12-18 months)

• In the example of the South Thailand wind power generation and battery storage project, construction was completed in 2018/12, and commercial operation began on 2019/4/11

Operation stage

• Optimal control using an energy management system (EMS)
• Regular performance evaluations and maintenance

https://www.adb.org/projects/53174-001/main

Market trends and opportunities for business expansion after 2025

The following new technology development is listed as a priority area in the 2025 Thai Energy Policy.

• Hydrogen energy infrastructure and regulatory preparations
• Increased supply of raw materials for sustainable aviation fuel (SAF) production until 2026
• Utilizing oil fields for carbon capture and storage (CCS)
• Joint research with Japan at the Altit Oil Field (Gulf of Thailand)

In IEEE PES Dinner Talk 2024, it was reported that the three major power agencies (EGAT, MEA, and PEA) in Thailand's energy transition are preparing to invest in infrastructure to respond to increasing renewable energy.
‍https://solarquarter.com/2025/02/11/thailands-energy-policy-2025-focus-on-clean-energy-and-domestic-energy-security/

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