Are battery energy storage systems economically feasible in Vietnam?

However, in Vietnam, there is a widely held industry perception that Battery Energy Storage Systems (BESS) are not economically feasible at this moment, while the country's first pumped storage hydropower (PSH) project Bac Ai with a capacity of 1,200 MW will not be commissioned until 20289.

Why should Vietnam invest in solar power?

Vietnam can leverage domestic solar manufacturing to meet domestic demand, implement direct power purchase agreements (DPPAs) enabling private renewable supplies, accelerate grid and battery storage infrastructure, and avoid costly LNG imports by prioritizing renewables.

Should Vietnam recalibrate its power system?

As Vietnam grapples with rising power purchase costs and mounting utility losses, policymakers are under pressure to recalibrate the system to ensure long-term financial sustainability.

Does Vietnam have a strong electricity sector?

Vietnam's electricity sector has experienced substantial growth, becoming the second largest in Southeast Asia in terms of installed capacity, behind Indonesia.1The country has witnessed a significant increase in electricity consumption, with an average annual growth rate of 12% between 2000 and 2020.

Does Vietnam have a power shortage?

Vietnams total power demand is expected to grow 10% annually during the period 2021-2024, and power shortages are expected to increase in different regions of the country.

What is the largest electricity storage project in Vietnam?

The largest electricity storage project in Vietnam is the Bac Ai Pumped Storage Hydropower Project. Located in Ninh Thuan province, the project has a capacity of 1,200 MW and is expected to play a crucial role in stabilizing the grid when it completes in a few years.