From dialogue to implementation: Promoting grid modernization and BESS development in Vietnam.

Overview of the Session. (Source: Global Energy Alliance)

This meeting is the next step in concretizing the cooperation contents between the two sides, focusing on modernizing and digitizing the power grid, developing Battery Energy Storage Systems (BESS), enhancing the flexibility and reliability of the power system, sharing knowledge, and developing domestic capacity.

New requirements for Vietnam's power grid.

At the seminar on September 30th, experts noted that the rapidly increasing demand for electricity, coupled with the growing proportion of renewable energy and distributed energy sources, is placing new demands on the operational capacity of the power system.

Location and intended use are factors that can determine the value that BESS can bring. Depending on the needs of each area, storage systems can be deployed near load centers, in areas with large renewable energy sources, or at points where the power grid is often under high pressure. This layout and operation will determine how BESS can contribute to balancing supply and demand, reducing pressure on the grid, and improving the efficiency of existing infrastructure.

Furthermore, one of the key requirements is to improve "grid visibility"—the ability to observe, collect data, and understand what is happening on the power grid. As the number of BESS systems increases, the challenge is no longer just installing more storage systems, but also how to effectively monitor and integrate multiple BESS systems into the power grid.

Power utility companies need digital data and tools to monitor grid conditions, forecast changes, and make appropriate operational decisions.

Promoting digital solutions in BESS management.

To address this problem, the Global Energy Alliance is developing a centralized energy management and operational scheduling platform for BESS. The platform allows for monitoring and optimization of multiple BESS systems deployed at different locations and voltage levels. Based on grid operating conditions and signals such as electricity price forecasts, the platform can help determine the appropriate timing and methods of charging and discharging for each system.

This approach aims to optimize the operational value and economic efficiency of distributed storage systems, while also providing additional information for power system management and operation.

The platform is a practical application of digital technology in energy storage management and can provide useful information and experience for broader efforts to enhance system visibility, improve operational flexibility, and support the effective integration of BESS into the power system.

“BESS is more than just hardware. As the number of storage systems increases, software, data, and orchestration capabilities will significantly determine how much value these systems create for the grid,” said Biswarup Ghosh, Global Director for Future Grids at the Global Energy Alliance.

Building domestic capacity for the BESS ecosystem.

One notable topic discussed at the session was the proposal to launch a high-quality Center for BESS (Business Energy Supply, Energy Efficiency, and Security) initiatives. This would serve as a platform for Vietnamese agencies, organizations, businesses, and training institutions to learn from experience and collaborate on capacity building and access to funding in the implementation of energy transition initiatives.

According to the direction outlined at the Session, if implemented appropriately, the Center could become a hub for research, training, testing, and sharing of knowledge and experience in energy storage technology based on technical results and a network of stakeholders formed from previous BESS activities; while also supporting capacity building for management agencies, power companies, businesses, universities, and research organizations in Vietnam.

The Electricity Authority and its partners will continue to discuss in detail the operational model, scope of functions, resources, and implementation roadmap of the Center, to ensure it aligns with the actual needs and development requirements of Vietnam's power system.

“The increasing role of energy storage batteries creates a need for enhanced domestic expertise within agencies and organizations responsible for planning, managing, deploying, and operating these systems. The High-Quality Center will be a place to build expertise, share experiences, and develop the capabilities that Vietnam needs as BESS is deployed on an increasingly large scale,” shared Dr. Hoang Anh, Director of the Electrical Engineering Training Program, School of Electrical and Electronics Engineering, Hanoi University of Science and Technology.

Vietnam also needs to continue researching how BESS can be implemented. Depending on market structure, pricing mechanisms, and intended use, BESS can provide a wide range of services, from time-shifted energy and peak load support to system operation support services.

Clearly defining the services, mobilization mechanisms, operating methods, and payment systems will be areas requiring further research to facilitate the development of BESS in line with the needs of Vietnam's power system.

From national-level cooperation to application at power units.

Collaborative activities between the Global Energy Alliance and Vietnamese partners are expanding from policy dialogue and technical support to specific applications at the power sector level.

In addition to the Memorandum of Understanding signed with the Vietnam Electricity Corporation, on September 29th, the Global Energy Alliance also signed a Memorandum of Understanding on energy transition and grid modernization with Ho Chi Minh City Power Corporation (EVNHCMC).

In the initial phase, the two parties will implement a six-month “Utility Charter” program to assess EVNHCMC’s existing system, identify priorities, and develop an implementation roadmap.

Potential areas of collaboration include building digital twins of the distribution grid, managing distributed energy sources, and developing BESS solutions.

Deployment at the power unit level provides an opportunity for digital solutions and data storage technologies to be evaluated under real-world operating conditions, while also contributing data and experience to the modernization of Vietnam's power grid.

The Electricity Department ( Ministry of Industry and Trade ) and the Global Energy Alliance exchanged the signed Memorandum of Understanding. (Source: Global Energy Alliance)

Towards Vietnam's role in modernizing the regional power grid.

These activities are part of the Global Energy Alliance's Grids of the Future program, which focuses on connecting grid digitalization, distributed renewable energy, and energy storage solutions with the specific conditions of each country.

In Vietnam, the combination of national-level dialogue, digital tool development, application within power companies, and domestic technical capacity building is creating a foundation for power grid modernization solutions to be tested, refined, and implemented in practice, paving the way for expansion to the region.

“Vietnam has great potential to become an important center for grid modernization in Southeast Asia. This is an opportunity for Vietnam to develop solutions that meet domestic needs, while accumulating experience that can be shared and applied more widely in the region,” said Ms. Minh Nguyen, Country Director for Vietnam, Global Energy Alliance.

“Modernizing Vietnam’s power grid requires continuous technical cooperation and coordination across the entire energy sector as the system increasingly integrates renewable energy sources and new technologies. Through cooperation with the Global Energy Alliance, we are jointly identifying practical priorities in areas such as grid digitalization and battery storage systems, while strengthening the necessary technical foundation to support deployment,” emphasized Mr. Tang The Hung, Deputy Director of the Electricity Department, Ministry of Industry and Trade.

In addition to the aforementioned priority areas, the Electricity Department hopes that the Task Force will continue to research and propose new cooperation initiatives, based on Vietnam's actual needs and the strengths of international partners. The goal is to ensure that the contents of the Memorandum of Understanding are implemented effectively, yielding concrete results and supporting agencies and businesses in carrying out their activities.

Both sides aim to build the Task Force into a regular, flexible, and effective exchange mechanism, thereby enhancing the sharing of knowledge, experience, technology, and mobilizing necessary resources for Vietnam's energy transition process.

Through future collaborative activities, the Electricity Authority and the Global Energy Alliance aim to make practical contributions to the modernization of the power system, the development of energy storage, and the enhancement of the integration of renewable energy sources, while supporting Vietnam in meeting the requirements for developing a safe, reliable, flexible, and sustainable power system in the new era.