Weichun Li of TÜV Rheinland says integrating storage and charging could be the key to scaling the industry and achieving profitability. (Photo: TÜV Rheinland)
Across the Asia-Pacific region, the race to decarbonize power systems has accelerated, yet the pace of energy storage deployment remains uneven. From China’s vast grid-scale projects, Taiwan’s bottleneck, and emerging corporate adoption in Southeast Asia, markets are evolving under distinct policy and economic conditions.
Weichun Li, TÜV Rheinland’s Global Head of Power Electronics and General Manager of Solar and Commercial Products of Greater China, offers a panoramic view of how the region’s storage landscape is taking shape, and why pairing storage with charging could be the missing link to scale the industry and make it profitable.
TÜV Rheinland, a global provider of testing, inspection, and certification services, focuses on supporting the development and market readiness of emerging technologies, helping to advance the transition toward sustainable energy systems.
Southeast Asia: The emerging growth frontier
Across the region, Southeast Asia has emerged as the next major growth hub after China and Japan. Countries such as Indonesia, Malaysia, Thailand, Vietnam, and the Philippines are viewed as large potential markets, driven by rising energy demand and the steady expansion of renewable capacity.
A key strength, Li noted, lies in the spillover of China’s manufacturing capacity. Facing domestic overcapacity and low-price competition, Chinese producers have brought quality yet affordable products into Southeast Asia, sharply reducing system installation costs.
However, the region still faces weak grid infrastructure and incomprehensive regulations. “Once renewables connect to the grid, stability becomes a big challenge,” Li said. Many markets also lack clear safety and installation standards. Yet he remains optimistic. “Being a latecomer is not necessarily a disadvantage,” he added. “Southeast Asia can learn from the successes and mistakes of more mature markets.”
Japan: Mature, liberalized, and subsidy-driven
At the other end of the spectrum, Japan represents a mature and advanced storage market. Li considers it one of the most developed in Asia, underpinned by a liberalized electricity system and strong policy continuity. Its economic structure resembles that of Taiwan and Europe, where most assets are privately owned, allowing individuals and companies to install storage systems independently.
This structure naturally supports behind-the-meter energy storage applications. “Japan’s market logic centers on maximizing value, whether on the grid side or the user side,” Li said.
Japan provides direct subsidies for energy storage, such as the Sustainable Innovation Initiative (SII), creating a stable and attractive environment for investment. Combined with its openness to emerging technologies, this makes Japan one of the region’s most appealing high-value markets, Li suggests. Although smaller in scale than the global “Big Three”— China, Europe, and the United States — Japan remains an important high-tier market within Asia’s energy transition landscape.
China: Scale and supply chain powerhouse
China remains the backbone of Asia’s energy storage ecosystem, Li believes. As one of the world’s three largest storage markets, it anchors the region with its vast domestic demand, rapid development, and strong industrial base.
Unlike Japan, China’s growth is policy-driven rather than subsidy-based, relying on government support for renewables and electric vehicles. Intense internal competition has driven down costs and fueled the export of technology and equipment throughout Asia, especially to Southeast Asia.
Taiwan: Stalled growth and a possible new path
While China powers regional supply and Southeast Asia emerges as the next frontier, Taiwan’s storage market remains caught in the middle, structurally promising yet slowed by fragmented policy and regulation.
Although industry players have referred to 2025 as the starting point for behind-the-meter energy storage growth, Li described this view as more aspirational than factual. “We haven’t seen a true boom in growth yet,” he said. Developers are turning to user-side projects largely because grid-side competition has become saturated and unprofitable, rather than as a result of genuine market momentum.
The biggest hurdles, Li said, lie in regulation and implementation. Policy continuity is fragile, as political transitions have led to inconsistent renewable targets and limited long-term support. Slow progress in distributed solar deployment has further restricted storage development, keeping growth well below its potential.
Yet Li believes the market still holds a path forward. Integrating storage with electric-vehicle charging could open a new window for Taiwan’s seemingly stalled progress. With more than 100,000 EVs already on Taiwan’s roads, the demand for charging stations is a stable consumption base for stored energy.
Weichun Li at the launch of TÜV Rheinland’s 2025 White Paper on Electric Vehicles and Charging. (Photo: Wendy Lo)
Storage-charging integration creates higher value
“Storage-plus-charging should be the first step, and the best choice, for Taiwan,” Li said. He suggests that energy storage should move beyond single-function arbitrage and shift toward integrated, high-value applications.
Currently, most stand-alone behind-the-meter energy storage systems generate revenue by charging during off-peak hours and discharging during peak hours. However, the profit margin remains narrow, and high installation costs make the model economically unattractive to investors.
Li believes a stronger path forward lies in integrating storage with charging infrastructure. By pairing batteries with EV chargers, operators can purchase power when prices are low and resell it to drivers at higher rates.
In markets such as China, this price differential can reach three to five times the standard retail tariff, dramatically improving project returns. This dual-revenue mechanism could make storage projects commercially viable not only in Taiwan but across emerging Asia-Pacific markets.
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