Inside Vietnam’s 16.3 GW Energy Storage Ambition: Why BESS Matters for Renewables

Vietnam is moving toward a more integrated energy transition model in which renewable power generation, battery energy storage systems (BESS), smart grids and battery recycling develop alongside one another.

With the revised Power Development Plan VIII (PDP8) and a new legal framework supporting energy storage, BESS is expected to play an increasingly important role in improving grid flexibility, maximising renewable energy utilisation and supporting Vietnam’s target of achieving net-zero emissions by 2050.

Renewable Growth Creates Greater Demand for Energy Storage

The revised PDP8 identifies renewable energy as a central pillar of Vietnam’s future power system. By 2030, renewable energy excluding hydropower is expected to account for 28%–36% of total installed power capacity, while solar power capacity is projected to reach 46,459–73,416 MW.

At the same time, Vietnam plans to develop 10,000–16,300 MW of energy storage capacity, including both BESS and pumped-storage hydropower.

The planned expansion reflects a growing need for flexibility as Vietnam increases its reliance on weather-dependent renewable generation.

Unlike conventional power plants, which generally generate electricity for immediate consumption, energy storage allows surplus electricity generated during periods of high renewable output to be stored and dispatched when electricity demand increases.

This can improve the utilisation of renewable power while reducing the need to rely on higher-emission generation sources during periods of peak demand.

Tran Quoc Tam, General Director of Vietnam Lien Thanh Electromechanical Joint Stock Company (LITHACO), described BESS as the “memory” of the power system, storing excess solar electricity generated during the day for use in the evening or during peak demand periods.

BESS can also contribute to frequency and voltage regulation, reduce pressure on transmission infrastructure and improve overall energy management efficiency.

Electricity Demand Adds to the Storage Opportunity

Vietnam's electricity demand is expected to continue increasing as the country expands data centres, artificial intelligence infrastructure, electric vehicles and high-tech industries.

Against this backdrop, coordinated investment in electricity generation, transmission networks and energy storage will become increasingly important to maintaining energy security while supporting Vietnam’s emissions reduction and green growth objectives.

The development of BESS therefore extends beyond simply supporting renewable energy projects. Storage could become an increasingly important component of Vietnam’s broader electricity infrastructure as the country manages rising electricity consumption and a growing share of variable renewable generation.