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China ranks amongst the world's top three markets as investors seek greater certainty.

Execution risks and regulatory uncertainty are slowing investment in Asia's battery energy storage systems (BESS), even as demand continues to grow, according to a report by global law firm DLA Piper.

The report, Capital Unlocks Capacity, said investors are choosing markets with clear regulations, reliable revenue models, and lower project risks instead of focusing only on market size.

China ranked as the world's third most attractive market for battery energy storage investment, according to 14% of respondents, following the US (25%) and the UK (19%).

DLA Piper said demand for battery storage in Asia Pacific is growing as countries expand renewable energy, electrify more sectors, and build more data centres. However, the report noted that investors still want greater certainty before committing capital.

"Asia represents one of the most compelling long-term opportunities in the global energy storage market, but it is not a straightforward destination for capital," said Peter Armstrong, DLA Piper regional head of energy and natural resources for Asia.

He said investors are looking for markets where project risks are clear and developments can be completed with confidence. In many Asian markets, this still depends on strong local partners and clearer regulations.

The report said partnerships with local developers are becoming more important, especially in East Asia, where they help investors deal with permits, grid connections, and local rules.

China also remains a key part of the global battery supply chain and technology market. DLA Piper said it is the world's most attractive market for developers and project originators and continues to offer opportunities across the battery value chain.

However, the report said international investors still face challenges entering China's project development market, making local partnerships an important way to access opportunities.

Outside China, DLA Piper said India and parts of Southeast Asia are drawing more investor interest. It added that capital is flowing to markets with stable regulations, good grid access, and reliable revenue models.

"Across Asia Pacific, we are seeing strong underlying demand for storage, driven by renewables growth and rising power consumption," said Vincent Seah, country managing partner for Singapore and finance partner with DLA Piper.

He said investors are focusing on projects with reliable income, strong counterparties and well-managed risks, rather than simply investing in the biggest markets.