Vietnam Energy Storage

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. It has been estimated that there will be a power shortage of nearly 400 million kWh in 2021, and it will reach a peak of 13.3 billion kWh in 2023, according to the report of Electricity of Vietnam (EN). 

Recently, Vietnam’s National Power Transmission Corporation (EVNNPT) shared that it is looking into Battery Energy Storage Systems (BESS) among several technology options as an appropriate solution. This technology can enhance power system flexibility and enable high levels of renewable energy integration. A recent report by the U.S. Trade Development Agency (USTDA) showed that BESS can be useful in fluctuation suppression, loading following, time-shifting, peak saving, energy-saving, and emergency power.

Pilot projects of this technology have been carried out globally for different purposes such as reducing greenhouse-gas emissions and supporting aging power facilities. The BESS market is still in its early stages but it has been growing rapidly, mainly in developed countries. Key factors behind this growth are the fall in battery prices, improved stability of power systems, integration of alternative and renewable energy sources, and BESS policy. 

As an example of how BESS could be useful for a country like Vietnam, currently the country has approximately 320 solar power projects (with a capacity of 34,000 MW) and 300 wind power projects (with a capacity of about 74,000 MW) proposed to be fed into the National/Provincial Power Development Plan between 2021 and 2023. None of which have energy storage solutions already identified.

For more information please contact: Nam Tran, Commercial Specialist, U.S. Consulate General in HCMC, E-mail: Nam.Tran@trade.gov.