Vietnam’s commitment to sustainable energy development is evident in the Resolution No. 55-NQ/TW issued on February 11, 2020, by the Politburo. This resolution outlines the national strategy for energy development, setting clear objectives for 2030, with a vision toward 2045. It emphasizes that energy efficiency, conservation, and environmental protection are critical national priorities. To achieve these goals, the deployment of Battery Energy Storage Systems (BESS) is emerging as a key solution, aiding in the integration of renewable energy sources and ensuring grid stability.
1. Overview of Battery Energy Storage Systems (BESS)
1.1. Introduction to BESS
A Battery Energy Storage System (BESS) is designed to collect excess energy from various sources, store it in rechargeable batteries, and then release it when needed. The process is divided into three main steps:
Charging: During periods of surplus energy, such as midday when solar energy production is high, excess electricity is captured.
Storage: This energy is stored within batteries for later use, typically for about four hours.
Discharge: When demand exceeds supply, such as during the evening, stored electricity is discharged back into the grid to maintain stability.
1.2. The Suitability of BESS in Today’s Economy
BESS technology is incredibly flexible and scalable. It can be deployed in small-scale applications, such as residential homes, or large-scale industrial projects. For instance, the Tesla Powerwall, with a capacity of 13.5 kWh, provides continuous power for a household, while the Vistra Moss Landing Energy Storage Facility in California, with a capacity of 750 MW/3,000 MWh, can supply energy to at least 300,000 homes.
Furthermore, integrating BESS with renewable energy projects optimizes energy storage and mitigates intermittency issues associated with renewable sources. For example, the Edwards & Sanborn Solar and Energy Storage Facility, the largest of its kind in the U.S., combines nearly two million solar panels with the capacity to store 3,287 MWh of electricity, ensuring power is available even during periods of low sunlight.
Additionally, BESS technology facilitates rapid grid recovery after widespread power outages, a process known as “black start.” Unlike traditional diesel generators, BESS can quickly restore power while reducing carbon emissions, thus supporting a cleaner, more resilient energy infrastructure.
1.3. Innovations in BESS
BESS continues to evolve, with various types of batteries, including lithium-ion, leading the charge due to their high performance, energy density, and long lifespan. The price of lithium-ion batteries has significantly decreased in recent years, making BESS an increasingly viable solution for global energy storage needs.
2. Legal Framework for Battery Energy Storage Systems (BESS) in Vietnam
Vietnam has recognized the importance of energy storage systems, especially BESS, in supporting its renewable energy goals. Legal and policy frameworks have been gradually developed to foster this transition.
2.1. Vietnam’s Legal Landscape for BESS
The Vietnamese government has shown a strong commitment to renewable energy, including solar energy, through the Electricity Law of 2024, which introduces a separate chapter on renewable energy. This law encourages clean energy transition through macro policies, including tax incentives and support for renewable energy markets.
The concept of energy storage, particularly BESS, first appeared in Vietnam’s legal texts in 2022. The Politburo’s Resolution No. 55-NQ/TW highlighted the importance of BESS as a key enabler in the country’s energy transition, emphasizing its role in optimizing renewable energy use and reducing pressure on the power grid.
In 2023, Decision No. 1009/QD-TTg approved a political declaration to establish a partnership for just energy transition (JETP), including upgrading BESS infrastructure to meet the objectives outlined in the country’s power development planning. The declaration emphasizes developing energy storage technology, upgrading transmission networks, and promoting the integration of solar energy with storage solutions.The government has also issued Notice No. 356/TB-VPCP in 2024, directing the construction of mechanisms to encourage the development of rooftop solar combined with BESS. This legal document encourages households and businesses to install BESS systems, providing incentives such as tax reductions, low-interest loans, and financial support for installation.
2.2. Current Implementation and Future Prospects
Vietnam has already initiated pilot projects to explore BESS integration, particularly in regions with high renewable energy potential like Ninh Thuận, Bình Thuận, and Đắk Lắk. These projects focus on gathering data and developing storage infrastructure to support large-scale renewable energy adoption.
The Vietnamese government is also working on expanding BESS to mid-sized and small-scale applications, such as in the industrial and residential sectors. While the development of BESS has been slow, largely due to a lack of comprehensive policy and widespread adoption, the government is focused on creating a favorable environment for private investment in this area.
Moreover, Vietnam is actively attracting investment through Public-Private Partnerships (PPP) and international financing institutions like the Asian Development Bank (ADB) and the World Bank (WB). One notable project is the 50 MW/50 MWh BESS project by the Vietnam Electricity Group (EVN) in Hanoi, aimed at data collection and policy development for future BESS integration.
BESS technology is rapidly becoming a cornerstone of Vietnam’s energy strategy, aligned with the country’s broader goals of clean, sustainable energy development. Through a combination of progressive legal frameworks, government incentives, and the growth of innovative energy storage solutions, Vietnam is poised to integrate BESS into its energy infrastructure, ensuring a stable, green, and reliable power supply for the future. As the legal landscape continues to evolve, BESS will play an increasingly critical role in achieving the nation’s energy security and environmental objectives.
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