Vietnam energy storage subsidies

Does Vietnam need a battery energy storage system?

Vietnam currently lacks a regulatory and pricing framework for battery energy storage systems (BESS) to provide ancillary services, which has hindered interest in PDP8’s modest target of 300 MW BESS by 2030.

Why is Vietnam revising its long-term power development plan?

Vietnam is revising their long-term power development plan less than two years after its release, as previous capacity expansion targets have become unrealistic. The urgency to fill immediate supply gaps leaves planners with limited options: a razor-sharp focus on renewables, battery storage, and electricity imports from now until 2030.

Does Vietnam need electricity imports from Lao PDR?

Electricity imports from Lao PDR remain a key part of Vietnam’s strategy to relieve capacity stress. The government has made noticeable efforts to address policy gaps to expedite project development and approvals.

How long will Vietnam's master power development plan last?

Vietnam’s energy planners have gone back to the drawing board, revising the country’s master power development plan, PDP8. Released in 2023, it was meant to last at least five years, laying out the national power system blueprint up to 2030. However, the core targets have quickly proven to be unattainable.

What does the PDP8 revision mean for Vietnam's power sector?

The PDP8 revision comes as little surprise to those following Vietnam’s power sector, given the slow pace of PDP8 implementation so far. However, it serves as yet another reminder of the all-too-frequent gap between aspirational policy targets and what the state can actually execute.

Are Vietnam's transmission lines the busiest in the region?

Our TZ-APG v1 model shows that Vietnam’s domestic transmission lines are potentially the busiest in the region, given the two load centers in the north and south and the development of renewable energy in the resource-rich central region. This occurs regardless of the level of integration in the regional grid.