Wilhelm van Butselaar, VP Growth and Business Development APAC at Fluence, believes batteries play a key role in energy transition and help enhance grid stability. (Photo: Wilhelm van Butselaar’s LinkedIn)
Significantly reduced costs of solar and wind energy generation in recent years have accelerated global energy transition. However, the intermittent nature of renewables poses a major challenge to grid stability, an essential step toward achieving net zero.
Wilhelm van Butselaar, VP Growth and Business Development APAC at Fluence, a global leading provider of smart energy storage solutions, shared his insights of how to advance the deployment of energy storage technologies amid today’s uncertain geopolitical landscape and create a new path for energy transition.
Energy storage market grows 21% annually as energy security gains global attention
Battery energy storage systems (BESS) are far from being just a supporting player in the grid. According to Butselaar, they play a central role in the energy transition by enhancing grid stability, improving energy reliability, and enabling the effective integration of intermittent renewable sources like solar and wind energy into the electricity system.
A key advantage of BESS is their rapid response. By supplying power in real time and adjusting their power out in response to frequency, BESS can emulate the inertia of traditional generators, allowing them to mitigate grid fluctuations during outrages or frequency disturbances. In grids with high renewable energy penetration, the stabilizing role of BESS is irreplaceable, Butselaar noted.
From a global trend perspective, the energy storage market is expanding at a rapid pace of 21% every year, and it’s expected to reach an installation of 137 GW/442 GWh by 2030.
Butselaar highlights the irreplaceable role of BESS in stabilizing grid with high renewables penetration. (Photo: Fluence)
While Taiwan plays a critical role in the global AI supply chain, it faces challenges in energy transition, rising energy costs, and energy security. According to Martin Tzou, general manager of Fluence Energy Taiwan,
the adoption of energy storage can enhance energy independence, reduce reliance on the grid, and cushion the impact of electricity price fluctuations. In emergencies, BESS can also provide reliable backup power.
Taiwan has been actively developing BESS, with many successful applications already in place. When a powerful earthquake struck Hualien city, Taiwan on April 3, 2024, causing a generator trip, BESS acted as the first line of backup, discharging within 10 seconds with power output equivalent to that of a medium-sized thermal power unit. This provided valuable time for pumped hydro to come online, enabling the grid frequency to return to normal within 10 minutes.
Fluence has installed 610 MWh of energy storage capacity in the Philippines, making it the second-largest site in APAC. (Photo: Fluence)
Complex grid connection approval process remains a challenge across APAC
Headquartered in Virginia, Fluence operates globally and has established a strong presence across the Asia-Pacific region, where countries are rapidly advancing their energy transition. The company has set up offices in Taiwan, the Philippines and Australia, and recently opened a new branch in Japan this January to support the region’s energy storage market development.
Driven by the Philippine government’s strong policy push for renewables and energy storage, Fluence has installed 610 MWh of energy storage capacity in the country— its second-largest deployment in the Asia-Pacific region. According to Butselaar, such policy support not only accelerates deployment but also enhances the country’s investment appeal.
In the Philippines, BESS is recognized as an independent asset. Through a liberalized wholesale electricity spot market (WESM), the country provides operators multiple revenue streams, including ancillary services and electricity trading.
However, the Southeast Asian market also presents unique challenges. In the Philippines, these include a complex grid connection approval process, regulatory uncertainties on fire safety and cybersecurity, transmission constraints, shifting market rules, currency fluctuations, and exposure to natural disasters. Moreover, unlike other markets, the Philippines permits grid connection application only after project completion, which places greater risks on asset owners.
Southeast Asian markets such as Thailand, Malaysia, and Indonesia also grapple with transmission bottlenecks, grid instability, and high costs of traditional power generation. In response, Fluence has introduced modular and disaster-resilient designs tailored for tropical climates, such as BESS equipped with liquid cooling, enhanced insulation, and specialized coatings to ensure long-term performance and reliable operation under hot and humid conditions.
Amid the anti-ESG sentiment following President Trump’s return to office, Butselaar emphasized that investment in the sector remains unaffected. He pointed out that global energy storage market continues to grow robustly, with notable rising demand in the U.S.
Fluence began building out its US supply chain before the Inflation Reduction Act (IRA) was passed in 2022, securing a competitive edge through its localized supply chain strategy.
Fluence mitigates political and economic trade risks through a diversified supply chain strategy. According to Butselaar, the company is committed to delivering localized solutions that address the unique challenges of each market by tailoring its products to specific regional needs. Fluence aims to drive sustainable growth across the region it serves.
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