Experts are urging Vietnam to develop Battery Energy Storage Systems as the country accelerates towards renewable energy sources to guarantee energy security and sustainable development. “The institute under the Ministry of Industry and Trade proposed that Battery Energy Storage Systems would be essential for integrating renewable energy into both power generators and the national grid,” says Institute of Energy under the Industry and Trade ministry.
Vietnam’s eighth National Power Development Plan (PDP8) is also upbeat on energy storage and aims at 2,700 MW of energy storage capacity by the end of 2030, of which it envisions 2,400MW from pumped-storage hydropower and 300MW from battery storage. As such, only one project is currently under construction, the 1,200MW pumped-storage hydropower project in Bac Ai. This leaves enough targets unmet, while shedding light on what support BESS can offer the power system.
ESS does not provide electricity but stores it to realize when needed. Countries are already establishing their legal frameworks, such as the United States, Thailand, China, and India for its integration into their power grids at various levels.
For Vietnam, “which has a power system that reaches the high-risk threshold at 44 percent of maximum capacity on regular days and 88 percent during holidays,” the LLC for National Power System and Market Operation says. Researchers at Hanoi University of Technology have found that storage systems offer the best fiscal value as compared to traditional power sources such as those provided by a gas turbine engine or a diesel, all of which point to economic empowerment.
Storage is also necessary to consolidate renewable energies, and to lessen the pressure on the national grid for continuous power, explained Deputy Director of Vu Phong Energy Group, Pham Dang An. However, that kind of system requires financial and technical policies ensuring safety and good quality.
Despite the advantages, there are barriers as well. According to Ha Duong Minh, a researcher at the International Centre for Development and Environment in France, installation and operational costs are too high, and this makes it difficult to adopt a BESS. Electricity prices in Vietnam will have to double before investments in a storage system could become profitable.
