Energy Storage System in Vietnam: Recommendation on technology, financial and legal mechanism support


Recently, the proportion of Renewable Energy (RE) sources in Vietnam increased rapidly to 25% after the government issued FIT policies to subsidize RE such as wind power, especially solar power. However, the rapid increase in these renewable energy sources creates certain difficulties in the operation of the grid, leading to the need to increase the reduction of generating capacity or curtailment.

In this context, ESS has the potential to help meet these challenges and accelerate Vietnam’s energy transition. ESS offers a solution to these problems by storing the surplus supply from RE, reducing congestion. In addition, ESS can also provide services as monetizable energy storage benefits, including energy arbitrage, ancillary services, and transmission network support such as voltage and frequency control, power reserves or black start. Besides, non-monetizable benefits may include improved air quality, power resilience during natural disaster, reduced land use and job creation,