EVN AND ADB COLLABORATE ON PILOT BESS PROJECT - A NEW CHAPTER IN RENEWABLE ENERGY IN VIETNAM

Key Highlights of the Meeting:

• Nguyen Tai Anh, Deputy General Director of EVN, together with representatives of various EVN departments, engaged in detailed discussions with ADB on the draft proposal for the BESS project.
• The BESS project aims to provide ancillary services including power and frequency control, which are increasingly crucial in the context of Vietnam's growing reliance on renewable energy.
• Participation of experts from ADB, the Global Energy Alliance for People and Planet, Rocky Mountain Institute, and the Vietnam Energy Institute enriched the dialogue.

The BESS Pilot Project Overview:

• Proposed to be installed at a transformer station in Northern Vietnam, the BESS pilot project aims to provide crucial support services including peak shaving and frequency control amid rapid increases in renewable energy (RE) and power shortages in the region.
• The project's benefits include reducing RE curtailment, lowering power losses, and easing the investment pressure on transmission grids.

ADB's Support and Evaluation:

• Hyunjung Lee, ADB's Senior Energy Economist, highlighted the cooperative efforts of EVN in exchanging views and contributing to the BESS project draft in Vietnam.

The BESS Project's Impact and Collaborative Effort:

• Jointly developed by ADB and the Rocky Mountain Institute, with support from the Global Energy Alliance for People and Planet and the Vietnam Energy Institute, the BESS pilot project is anticipated to reduce CO2 emissions by 23,717 tons over its lifecycle.
• Nguyen Tai Anh from EVN noted the flexibility and rapid deployability of BESS as a solution for storing excess energy during low demand periods and releasing stored energy during high demand, enhancing the grid's flexibility and addressing the variability of RE sources.

Exploring BESS in Resolution 1009/QĐ-TTg: A Closer Look

Resolution 1009/QĐ-TTg, issued by the Vietnamese government, signifies a pivotal step in the nation's energy strategy, particularly focusing on the development and integration of BESS technology. This resolution forms a crucial part of Vietnam's broader plan to enhance its energy infrastructure, particularly in the context of increasing reliance on renewable energy sources.

1. Support for the Energy Storage System (ESS):

• Objective: The aim is to bolster the ESS to meet the targets set in the Power Development Plan VIII. This includes enhancing the capability of officials and technicians regarding connection requirements, developing a policy framework for ESS, and assessing the demand for BESS and other storage solutions.
• Implementing Body: The Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, and EVN are designated as the key bodies for implementation.
• Funding: Financial resources are anticipated from international partners, development partners, and Vietnamese commercial banks.
• Timeline: The project is set to unfold from January 2024 through December 2026.

2. Investment in Energy Storage:

• Content: a) A pilot BESS project of 50MW/50MWh capacity by EVN to explore ancillary services, inform pricing mechanism design, and establish technical standards. b) Additional pilot projects include a 7MW/7MWh BESS integrated into a 50MW solar farm and a 105MW/105MWh BESS integrated within a 400MW solar farm. c) The completion of the Bac Ai 1,200 MW pumped-storage hydroelectric plant, including an upper reservoir and a 500 KV transmission line spanning 18.8km.
• Implementing Body: The State Capital Management Committee at Enterprises, PVN, EVN, and private enterprises are involved.
• Funding: Similar to the ESS support, funding is expected from international and development partners, as well as local banks.
• Timeline: This phase is projected to run from January 2024 to December 2029.

The strategic focus on BESS within Resolution 1009/QĐ-TTg underscores Vietnam's commitment to enhancing energy storage capabilities, vital for stabilizing the grid as the country increases its share of renewable energy. This move not only aims to reduce CO2 emissions and reliance on traditional energy sources but also seeks to modernize the national grid, making it more resilient and capable of handling the fluctuating nature of renewable energy sources.

As EVN collaborates with international partners like ADB and draws upon the expertise of institutions like the Rocky Mountain Institute, this initiative is set to pave the way for a more sustainable and energy-secure future for Vietnam. Keep an eye on this space for further updates as the BESS project unfolds, marking a significant chapter in Vietnam's renewable energy journey.

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