Battery Energy Storage Systems (BESS) are a key focus in Vietnam's next phase of energy transition. (Nguồn: Shutter Stock)

The context is also shifting. Across Southeast Asia, energy demand is projected to account for around 25% of global growth by 2035. ASEAN has committed to raising the share of renewable electricity to 45% by 2030, a target that demands more clean capacity and grids capable of managing it reliably at scale. Vietnam, as one of the region's most dynamic economies, sits at the center of that challenge.

The next phase of Vietnam's energy transition will be defined by how well battery storage, digitalization, and grid modernization function as a single system. Treating these as separate priorities risks missing what the transition requires: coordinated transformation that turns renewable capacity into reliable, affordable power.

Making the system work

Battery energy storage systems are central to that integration. They support renewable absorption, provide essential grid services, and give operators the flexibility to manage variability at scale. Their value depends on how they are deployed alongside grid modernization and digitalization as part of a unified approach.

The stakes extend beyond the grid. As energy systems become more integrated with essential services such as healthcare and disaster response, their reliability directly affects how communities withstand climate shocks. In climate-exposed areas across Vietnam, this connection between grid resilience and human security is direct.

Under Vietnam's revised PDP8, the country is targeting between 10 and 16.3 GW of battery storage by 2030. In the near term, around 1.2 GW of grid-connected BESS is being prioritized, with early deployments focused on system balancing and operational learning. These steps signal both progress and the scale of what comes next.

Reaching this level of deployment requires progress across regulatory frameworks, technical standards, market mechanisms, and investment readiness. Early projects are generating insights, but translating these into system-wide outcomes requires structured alignment and clear pathways for scale.

Deploying storage at this level is as much an institutional challenge as a technical one. Utilities are looking for support in commissioning, system configuration, and long-term asset management. Interest in digital tools, including digital twins, is also growing as a way to improve system visibility and performance across the asset lifecycle.

This shift moves the transition from isolated pilots to integrated system transformation. The Grids of the Future approach reflects this, placing distribution-level modernization, digitalization, and storage at the center, with a focus on how they enable utilities to plan, operate, and scale effectively.

A key part of operationalizing this in Vietnam is the BESS Task Force, led in coordination with the Global Energy Alliance for People and Planet, which bridges early implementation with longer-term policy and market development. Drawing on EVN-led pilots and technical studies, it helps ensure that initial deployments contribute to scalable outcomes.

The Global Energy Alliance for People and Planet works alongside governments, utilities, and partners across Vietnam and Southeast Asia to support this transition. Through the Task Force, it convenes stakeholders across policy, technical design, market integration, and financing, helping ensure that technical analysis translates into coordinated policy outcomes aligned with national priorities.

GEA representatives at the 9th Steering Committee Meeting of the Vietnam Energy Partnership Group (VEPG), Q1 2026, on developing a legal framework for BESS. (Source: Bao Cong Thuong)

From strategy to impact

In Vietnam, this work is taking shape through collaboration with the Ministry of Industry and Trade and EVN, alongside efforts to strengthen the BESS Task Force and advance grid digitalization. An early priority is supporting initial battery storage deployments that can serve as practical reference points for future scale-up, while helping utilities build operational experience and technical readiness.

Beyond individual projects, the broader focus is on creating the conditions for long-term deployment. This includes strengthening institutional capacity, supporting project preparation, and advancing the regulatory and technical foundations needed to enable wider adoption of battery storage across the power system.

Parallel efforts supported by the United Nations Development Programme (UNDP) demonstrate how these system-level investments translate on the ground. Distributed solar PV systems integrated with battery storage are being deployed in public health facilities, supporting uninterrupted care during power disruptions and strengthening local resilience.

These initiatives are expected to directly benefit around 2,800 people and indirectly support approximately 64,000, with a focus on equitable access, including women and vulnerable groups in climate-sensitive areas. This approach reflects a broader effort to align energy systems with development outcomes, including stronger healthcare delivery, improved disaster preparedness, and more inclusive pathways for communities most exposed to climate risks.

The deployment of distributed solar power systems combined with battery storage at public healthcare facilities is expected to indirectly support 64,000 people. (Source: GEA)

There is growing focus on how BESS participates in the broader power system, including ancillary services and integration into Vietnam's evolving wholesale electricity market. Clear participation models, pricing mechanisms, and revenue streams will be critical to building a bankable market for storage.

Capacity building remains a priority as utilities prepare to operate more complex systems. The proposed Battery Energy Storage Center of Excellence reflects the need to strengthen technical expertise across stakeholders.

Institutional readiness depends on strong environmental and social governance. Structured stakeholder engagement, grievance mechanisms, and transparent benefit-sharing are increasingly integrated into project design to support long-term sustainability and trust.

This transition will be defined by how systems are planned, coordinated, and built to last. It requires alignment between policy and execution, and sustained collaboration between government, utilities, and partners, including organizations such as the Global Energy Alliance for People and Planet and UNDP, working alongside national institutions.

Vietnam has demonstrated what is possible when ambition is matched with coordinated action. The opportunity now is to build on that foundation, advancing storage, digitalization, and grid modernization as parts of a single system. Done well, this transition strengthens reliability, supports essential services, and reinforces community resilience within a broader agenda of long-term development and inclusion.