The 5th Vietnam Clean Energy Forum: Promoting policies and technologies for energy storage and industrial solar power

Overview of the Forum.

The Presidium of the Forum.

I. Overview of energy storage systems in Vietnam’s energy transition: roles, challenges, and key policy-technological solutions

In his opening remarks at the Forum, Mr. Nguyen The Huu, Deputy Director General of the Electricity Authority (MOIT) emphasized the critical importance of establishing a legal framework for energy storage projects, a vital component of a modern power system. With wind and solar power increasingly accounting for a larger share of the energy mix but remaining dependent on natural conditions, energy storage systems play a key role in balancing capacity, enhancing grid stability, and increasing flexibility.

Mr. Nguyen The Huu – Deputy Director General of the Electricity Authority (Ministry of Industry and Trade).

The Ministry of Industry and Trade is currently studying and finalizing the legal corridor, electricity pricing mechanisms, bidding frameworks, and development planning for energy storage systems within the scope of Power Development Plan VIII. In a presentation on the legal framework for energy storage, the Electricity Authority representative outlined the development orientation for the 2025–2035 period, positioning energy storage as a foundational element of the energy transition alongside wind power, solar power, hydrogen, and smart grids. The regulatory body is considering adjustments to electricity pricing mechanisms, developing time-of-use tariff structures (peak/off-peak hours), and encouraging industrial zones and export processing zones to invest in storage systems to optimize energy costs, improve supply reliability, and reduce carbon emissions.

Mr. Tran Cao Thang – Department of Electricity Market and Power System, Electricity Authority (Ministry of Industry and Trade).

Furthermore, the legal framework for Battery Energy Storage Systems (BESS) is currently being integrated into the guiding documents for the revised Power Development Plan VIII, which proposes classifying storage projects based on their functions: standalone storage, combined with renewable energy sources, or serving national grid dispatch purposes.

Mr. Nguyen Anh Tuan (B) – Vice Chairman of the Vietnam Energy Association.

A representative from the Vietnam Energy Association (VEA) delivered a presentation titled “Overview of energy storage system (BESS) demand - current status and application potential in Vietnam.” The report emphasized the planning for a large-scale battery storage capacity in the revised Power Development Plan VIII. With advantages such as rapid response times and short charge-discharge cycles, BESS can provide frequency regulation services and absorb excess power from renewable energy plants within 2 to 4 hours.

The report also reviewed the global development of BESS, highlighting significant technological advancements and sharp cost reductions over the past decade, which have increased the feasibility of BESS applications. However, given that BESS prices remain relatively high, a stable legal framework on pricing is necessary to attract investors to participate in the market.

Mr. Bui Duy Linh – New Energy and Renewable Energy Management Department, National System Operation and Market Operator Company (NSMO).

The third presentation, delivered by a representative from the National System Operation and Electricity Market Operator (NSMO), focused on the operational and technical aspects of BESS.

Under the theme “Power system operation with integrated Renewable energy and storage,” NSMO affirmed that BESS is not only a backup solution but also an important dispatch tool that helps balance frequency and power, stabilize voltage, and relieve pressure on transmission grids.

NSMO also stressed the need for mechanisms allowing storage units to participate in the electricity market (including spot markets and ancillary services), thereby creating economic incentives for private investment in this still emerging sector.

Mr. Vu Thang – Country Director in Vietnam, HiTHIUM Energy Storage Technology Co., Ltd., Xiamen (HiTHIUM).

HiTHIUM Energy (China), represented by its Country Director in Vietnam, introduced the “∞Power BESS” model - a flexible energy storage platform with scalable capacity ranging from several MWh up to hundreds of MWh. The company presented its advanced lithium iron phosphate (LFP) battery technology, integrated with a liquid cooling system, multi-layer safety features, and compatibility with both centralized and string inverter systems.

According to HiTHIUM, with a configuration of 6.25 MWh per 20-foot container, the ∞Power BESS system reduces installation footprint by 20% and construction costs by 10-15% compared to traditional designs, while maintaining high performance and absolute safety.

HiTHIUM affirmed that Vietnam is a strategic market in Southeast Asia and is committed to long-term cooperation in the fields of energy storage and green transition.

Mr. Dao Ngoc Chung - Technical Department, Hanoi Power Corporation (EVNHANOI).

Next, the Hanoi Power Corporation (EVNHANOI) presented a paper on “Application and Development Orientation of Energy Storage Systems in Urban Power Grids.” The presentation shared experiences from pilot projects deploying battery storage at substations and critical load areas, helping to reduce peak demand during high-load hours, contributing to grid stability and alleviating pressure on transmission and distribution infrastructure expansion.

EVNHANOI aims to integrate BESS with rooftop solar power at office buildings, hospitals, schools, and shopping centers to develop a “smart urban electricity” model, where energy storage plays a key role in intelligent load management and operational optimization.

Discussion Session: Overview of Energy Storage Systems in Vietnam’s Energy Transition: Roles, Challenges, and Policy-Technology Solutions for Development.

During the morning discussion session, invited representatives responded to and acknowledged challenging practical questions raised by Forum delegates, including some issues that could not be answered immediately.

A delegate from the Phú Thọ Department of Industry and Trade expressed concern about the allocation of BESS across provinces and sought clarification on which provincial authority would be responsible for appraising and granting investment licenses for BESS projects.

Solar power investors proposed a “one-stop” administrative procedure for processing applications, noting that currently, each province applies different procedures related to land allocation, construction inspection, and fire safety approval due to the lack of unified guidance.

One company also expressed the desire to upgrade existing solar power plants (classified as “transition” projects due to delayed FIT mechanisms) into integrated plants with BESS in order to qualify for the new pricing framework, replacing the current transitional tariff.

II. BESS and Solar Power Systems for Industrial Parks – Forecasting Expansion Potential, Investment Costs, and Technological Solutions for 2025-2035

Mr. Nguyen Huu Khoa – Standing Member of the Scientific Council, Vietnam Energy Review.

A representative from the Scientific Council of the Vietnam Energy Journal opened the afternoon session with an overview of the demand for solar power combined with BESS development in industrial parks during the 2025-2035 period. Rooftop solar in industrial parks has attracted significant attention from delegates, as Vietnam possesses a technical potential of tens of gigawatts peak (GWp); utilizing just 20% of factory rooftop areas could generate a substantial amount of electricity. When integrated with BESS, rooftop solar helps increase self-consumption rates, reduce the “duck curve” effect, and enhance load regulation capabilities.

However, legal barriers, internal electricity trading mechanisms, and access to finance remain unresolved. Therefore, clear guidelines are needed on internal Power Purchase Agreements (PPAs), Direct Power Purchase Agreements (DPPAs), green credit policies, and incentives to deploy smart Energy Management Systems (EMS) within industrial parks.

Ms. Nguyen Nhu Thanh Thu - Head of Industrial Zone Management Department at DEEP C Hai Phong, concurrently Head of Renewable Energy Department.

The presentation from DEEP C Hai Phong Industrial Park introduced the application of rooftop solar power within this eco-industrial park. DEEP C aims to use 30% renewable energy by 2030 and 50% by 2040, both through self-installation of solar power systems and by purchasing renewable energy from other companies via Direct Power Purchase Agreements (DPPAs).

Enterprises in the industrial park are increasingly concerned with Environmental, Social, and Governance (ESG) issues, the Carbon Border Adjustment Mechanism (CBAM), and the RE100 initiative, which promotes commitments to 100% renewable electricity usage. However, many companies are not large enough to consume the minimum 200,000 kWh/month required to participate in DPPAs, nor do they have the capacity to install rooftop solar systems independently.

DEEP C Hai Phong proposed removing barriers to enable enterprises to share rooftop solar power. Since installing systems only for internal demand results in small capacities, it is necessary to allow the interconnection of rooftop solar and BESS systems across multiple companies within the industrial park to optimize power generation and storage.

Mr. Nguyen Quang Tu - Solutions Manager, Huawei Technology Co., Ltd. (Vietnam).

A representative from Huawei Digital Power Technologies (Vietnam) presented the “AI Energy Management” solution - an AI-driven system for managing and optimizing the operation of BESS clusters. This solution automatically adjusts charge-discharge modes based on electricity prices and load conditions, while providing early warnings of potential technical risks.

Huawei shared that similar models have been successfully deployed in China and Europe, and they are currently collaborating on pilot projects with partners in Vietnam’s industrial parks. The application of AI in BESS control represents a significant advancement, enhancing system efficiency, extending system lifespan, and maximizing investment value for owners. To date, Huawei has signed contracts to supply 60 MW of BESS capacity in Vietnam.

Mr. Nguyen Ngoc Tu - Sales and Project Development Director, Southern Market Manager, IPC Construction Joint Stock Company.

IPC, a major renewable energy installation contractor in Vietnam, shared its experience in installing BESS and analyzed various usage scenarios alongside energy storage technologies. IPC also highlighted development trends for BESS applications in renewable power plants, industrial sectors, and residential households.

According to IPC, BESS prices have dropped rapidly in recent years. Solar power combined with BESS is now more cost-competitive than fossil fuel electricity, expanding opportunities for BESS adoption in Vietnam. To support this growth, there is a need for a spot market with shorter trading cycles and a broader electricity price framework, including the possibility of negative floor prices.

Mr. Dao Hoang Duy – Deputy General Director of Business and Marketing, GG Industries Joint Stock Company.

A representative from GG Industries Vietnam presented plans for a pilot industrial-scale BESS manufacturing system in the Central and Southern regions, aiming to transform Vietnam into a hub for manufacturing, assembling, and exporting energy storage systems for Southeast Asia by 2035.

Lithium iron phosphate (LFP) technology, which has matured and become widely adopted, has been continuously improved in quality and cost since 2010 and is expected to remain the dominant technology through 2030. The Energy Management System (EMS) can be programmed to meet customer needs, utilizing AI to control charge-discharge cycles and optimize revenue.

Mr. Vo Le Duy Duc – Energy Storage Sales Director, VinEnergo Energy Joint Stock Company.

VinEnergo Co., Ltd. (a subsidiary of Vingroup) introduced its strategy to develop a “Make in Vietnam” clean energy ecosystem, with battery energy storage systems (BESS) as a crucial link in the value chain from battery cell and module production to large-scale storage systems.

VinEnergo is building a battery cell manufacturing plant with an annual capacity of 5 GWh and a BESS system manufacturing plant with 2.5 GWh capacity in Vung Ang, Ha Tinh. VinEnergo’s storage systems target two main segments: industrial and industrial park storage, and large-scale storage for the national power grid.

VinEnergo emphasized that establishing a domestic BESS production chain will enable Vietnam to master the technology, reduce import costs, and open up opportunities to export clean energy products to the region.

Discussion Session: BESS and Solar Power Systems for Industrial Parks, Including Forecasts on Solutions, Technologies, and Investment Costs for BESS in the 2025–2035 Period.

During the afternoon discussion session on BESS and rooftop solar power in industrial parks, experts from the Vietnam Energy Association and business representatives exchanged views and clarified the following points:

1. Rooftop solar combined with BESS is a clearly emerging trend in industrial parks.

2. Appropriate measures and mechanisms are needed, following guidance from the Ministry of Industry and Trade, to promote rooftop solar in industrial parks.

3. Businesses can save on electricity costs and meet ESG criteria due to the competitive pricing of rooftop solar with BESS.

4. Developing BESS requires a clear legal framework to facilitate easier financing by banks for projects.

5. Lithium Iron Phosphate (LFP) batteries will remain the dominant technology until 2030, despite other technologies having their own advantages.

6. Vietnam faces challenges competing in battery cell manufacturing due to established competitors, but can focus on developing battery system control software and hardware.

7. The biggest barrier to BESS development in industrial parks lies in policies on BESS integration and electricity trading prices, rather than technical issues.

8. Although batteries have a long lifespan, degradation rates have not been fully verified.

9. Compared to pumped-storage hydropower -originally developed for grid stabilization-BESS primarily supports renewable energy with short-term storage and fast response capabilities; both technologies need to be developed in parallel.

III. Conclusion - Based on the presentations and discussion sessions at the Forum, the Vietnam Energy Association (VEA) draws the following key conclusions:

Mr. Nguyen Thai Son – Standing Vice Chairman of the Vietnam Energy Association.

1. BESS is an essential pillar in the energy transition: As the share of renewable energy (wind, solar) increases, energy storage systems are not only backup solutions but also crucial tools for grid balancing, ensuring stability, flexibility, and safety of the national power grid.

2. Rooftop solar potential in industrial parks is significant but hindered by policy barriers: With an estimated clean energy potential of up to 50 GWp, the main obstacles lie in BESS integration mechanisms, electricity trading policies (internal PPAs, DPPAs), and inappropriate electricity pricing.

3. A stable legal framework on pricing is key to attracting investment: Despite declining BESS technology costs, private investors require clear regulations and mechanisms allowing BESS participation in electricity markets (spot market, ancillary services) to ensure profitability and confidence. The lack of comprehensive pricing mechanisms that reflect the full value and benefits of BESS has reduced investment incentives and limited growth scale.

4. Developing domestic BESS production is a long-term strategic goal: Vietnam has taken strategic steps through companies such as T&T Energy and VinEnergo to achieve self-reliance in BESS manufacturing, aiming to become a hub for production and export of energy storage systems in Southeast Asia by 2035.

IV. Recommendations (Proposed Solutions):

1. Complete the legal framework and establish specific pricing mechanisms for BESS (top priority):

1.1.Urgently issue and publicize a clear legal framework and electricity pricing mechanism for energy storage projects, including classification of projects by functionality.

1.2. Develop incentive tariff structures for energy storage based on daily load curves (peak/off-peak pricing).

1.3. Expand the market: Research and implement mechanisms allowing storage units to participate in electricity markets (shorter cycle spot markets, ancillary services), and broaden the pricing framework (including negative price floors) to stimulate private investment.

2. Remove administrative barriers for rooftop solar in industrial parks and BESS:

2.1. Add BESS types and classification levels into legal regulations on construction.

2.2. Simplify procedures: Issue clear, unified guidelines to streamline planning amendments, investment approvals, appraisals, and permits for BESS and rooftop solar, covering land allocation, construction acceptance, and fire safety inspection under a “one-stop-shop” model.

2.3. Make sharing mechanisms more flexible: Allow enterprises within industrial parks to link and share rooftop solar capacity and BESS for optimized internal use, especially supporting smaller companies unable to participate in DPPA.

3. Support financing and technical standards:

3.1. Financial mechanisms: Establish a strong legal foundation to enable banks to provide financing for BESS projects, combined with green credit policies.

3.2. Safety and durability standards: Require experts and regulatory bodies to issue clear safety standards for BESS in industrial parks; regularly update technical standards and independently verify degradation rates and battery lifespan (e.g., 25 years) to increase investor and user confidence.

4. Encourage domestic industry development and technology application:

4.1. Improve preferential policies for supporting industries and high-tech sectors.

4.2. Promote investment in domestic production of equipment, components, and battery storage systems toward localization, reducing import costs, and enhancing technological capacity.

5. Promote pilot projects and technology applications:

5.1. Accelerate BESS projects by state-owned enterprises as pilots to serve as a basis for improving mechanisms, policies, and technologies.

5.2. Encourage pilot deployment of BESS combined with rooftop solar in industrial parks, applying smart energy management systems (EMS) and AI to optimize operations and increase revenue.

6. Develop a phased roadmap for BESS development (with parallel priorities):

Urgently research and propose a BESS development roadmap through two business models (pre-meter and post-meter BESS), defining roles, benefits, and investment levels for each electricity market development stage:

6.1. Short-term: Current wholesale market with gradually improving pricing mechanisms.

6.2. Medium-term: Expanded wholesale market with improved pricing policies.

6.3. Long-term: Fully competitive electricity market with modern, synchronized transmission, distribution, and IT infrastructure.

Based on these proposals, we believe that BESS combined with rooftop solar in industrial parks will develop on the right path, fully harnessing their potential, contributing to optimized power system operations, ensuring energy security, and promoting sustainable development.

Signing ceremony of cooperation agreements between Agencies and Businesses at the Forum:

Signing Ceremony of the Memorandum of Understanding on Cooperation between the Vietnam Energy Association and HiTHIUM Energy Storage Technology Co., Ltd., Xiamen (China).

Signing Ceremony of the Memorandum of Understanding on Cooperation between HiTHIUM Energy Storage Technology Co., Ltd., Xiamen, and DANSA Green Energy Technology Joint Stock Company.

Signing Ceremony of the Joint Venture Agreement for Energy Storage (BESS) Commercial Partnership in the Vietnamese Electricity Market between Pacific Joint Stock Company and Energy Trading and Investment Joint Stock Company (EJSC).

Some photos of partners at the Forum:

Some photos from the Conference Hall: