Sungrow and ERS Energy advance 1 GWh storage push across Malaysia and Philippines

Sungrow Power Supply Co., Ltd. (Shenzhen: 300274) and ERS Energy are advancing two major battery energy storage projects totalling approximately 1 GWh across Malaysia and the Philippines. The portfolio consists of a 441 MWh four-hour MyBeST installation in Bahau, Malaysia, and a 556 MWh four-hour system for ACEN in the Philippines, producing a combined announced capacity of 997 MWh. ERS Energy is serving as engineering, procurement and construction contractor, while Sungrow provides battery technology and related power-conversion capabilities. The projects matter because they are designed not merely to store renewable energy but to supply grid services in markets where solar growth is creating greater need for flexibility and system stability.

A four-hour 441 MWh battery corresponds to approximately 110 MW of nominal discharge power, while a four-hour 556 MWh system equates to roughly 139 MW. Together, the announced energy capacities therefore represent approximately 249 MW of four-hour capability before allowing for project-specific design differences. That combination of power and duration is better suited to shifting meaningful volumes of solar generation into evening demand periods than the shorter-duration batteries historically used primarily for frequency response.

Why are Malaysia and the Philippines moving toward much larger four-hour battery systems?

Both markets are adding renewable generation while operating electricity systems that still rely significantly on fossil-fuel generation for balancing and reliability. Solar generation peaks during daylight hours and falls rapidly toward evening, creating a widening requirement for dispatchable resources capable of bridging the gap between renewable output and demand.

Malaysia’s 441 MWh Bahau project forms part of the country’s MyBeST programme, an Energy Commission initiative designed around large-scale battery storage. The broader programme envisages hundreds of megawatts of battery capacity intended to strengthen grid stability and help the country integrate a larger share of renewable generation.

The Philippines presents a somewhat different commercial environment because batteries can participate in the Wholesale Electricity Spot Market and provide grid services in addition to energy shifting. Sungrow says the ACEN project will incorporate grid-forming functionality, which can help battery inverters contribute voltage and frequency support traditionally provided by synchronous fossil-fuel generators.

Why is energy storage now more financially important to Sungrow than photovoltaic inverters?

Sungrow’s first-half 2026 results underline how much the company’s revenue mix has changed. Group revenue fell approximately 29% to CNY30.91 billion, while attributable net profit declined about 32% to CNY5.26 billion. Energy-storage system revenue was approximately CNY15.46 billion, accounting for around half of total sales and exceeding the CNY12.39 billion generated by photovoltaic inverters and other power-conversion products.

Storage revenue itself declined 13.2% year over year, so the Southeast Asian projects arrive during a period when Sungrow needs fresh deployments rather than merely relying on past growth. The company nevertheless shipped around 25 GWh of storage systems during the first half, illustrating that it already operates at substantial global scale.

The strategic shift is significant because battery systems combine cells, power electronics, thermal management, controls and software, giving Sungrow a much larger equipment package to sell than a standalone solar inverter. Storage also broadens the customer relationship from renewable generation into grid stability and electricity-market optimisation.

What does Sungrow’s depressed share price say about the market’s expectations?

Sungrow shares closed at CNY84.98 on September 14, up 0.69% for the day. The 52-week range was CNY83.12 to CNY209.88, meaning the stock remained only about 2% above its annual low and roughly 60% below its 52-week high despite the modest daily gain.

That valuation backdrop shows why investors will demand more than storage-capacity announcements. Sungrow remains profitable, but first-half revenue and earnings contractions have shifted attention toward whether new international battery projects can stabilise growth and protect margins.

Southeast Asia offers substantial long-term potential because electricity demand is rising alongside industrialisation, data centres and renewable development. The commercial value for Sungrow depends on converting that regional need into repeat orders without sacrificing pricing or taking excessive project risk.

Why could grid-forming technology become more important than battery capacity alone?

Conventional grid-following inverters rely on an existing electrical waveform generated elsewhere in the power system. Grid-forming inverters can establish voltage and frequency references themselves, allowing batteries to perform some functions historically associated with rotating thermal generators.

That capability becomes increasingly important as solar and wind replace synchronous generation during larger portions of the day. A power system containing substantial inverter-based generation needs new ways to provide frequency stability, fault response and other services that were previously inherent in conventional power plants.

The Philippines project therefore gives Sungrow an opportunity to demonstrate a higher-value capability rather than compete only on battery price. If grid-forming operation performs reliably under real network conditions, the reference could strengthen Sungrow’s position as other Southeast Asian utilities procure longer-duration and more sophisticated storage systems.

Key takeaways from Sungrow and ERS Energy’s 1 GWh Southeast Asian storage projects

• Sungrow and ERS Energy are advancing approximately 997 MWh of BESS capacity.
• The Malaysian MyBeST project has 441 MWh of four-hour storage.
• The Philippine ACEN project has 556 MWh of four-hour storage.
• The two projects imply roughly 249 MW of combined four-hour discharge capability.
• ERS Energy is the EPC contractor.
• The Philippine project includes grid-forming functionality.
• Sungrow generated CNY15.46 billion of storage revenue in the first half of 2026.
• Storage now accounts for about half of Sungrow’s group revenue.
• Sungrow shares remain near their 52-week low despite a 0.69% September 14 gain.
• Project execution and repeat Southeast Asian orders will determine the longer-term commercial impact.