An overview of the meeting. (Source: Global Energy Alliance)

The meeting marked the next step in translating the cooperation areas agreed by the two sides into concrete action, focusing on power grid modernisation and digitalisation, the development of Battery Energy Storage Systems (BESS), improving the flexibility and reliability of the power system, knowledge sharing and domestic capacity building.

New requirements for Vietnam’s power grid

At the 30 September dialogue, experts noted that rapidly rising electricity demand, combined with the growing share of renewable energy and distributed energy resources, is placing new demands on the operational capabilities of the power system.

The location and intended use of a BESS can determine much of the value it delivers. Depending on the needs of each area, storage systems can be deployed close to load centres, in areas with large renewable energy resources, or at points where the grid frequently comes under pressure. Their configuration and operation will determine how BESS can help balance supply and demand, reduce pressure on the grid and improve the utilisation of existing infrastructure.

Another important requirement is to enhance “grid visibility” - the ability to monitor, collect data on and understand what is happening across the power grid. As the number of BESS installations increases, the challenge is no longer simply to install more storage systems, but also to monitor and coordinate a large number of BESS units effectively across the grid. Electricity utilities need data and digital tools to monitor grid conditions, anticipate changes and make appropriate operational decisions.

Promoting digital solutions for BESS management

To support this effort, the Global Energy Alliance is developing a centralised energy management and operational scheduling platform for BESS. The platform enables the monitoring and optimisation of multiple BESS installations deployed across 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 approach for charging and discharging each system.

This approach is intended to optimise the operational value and economic efficiency of distributed storage systems, while providing additional information to support the management and operation of the power system.

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 not just a hardware story. As the number of storage systems increases, software, data and coordination capabilities will significantly determine how much value these systems can create for the grid,” said Biswarup Ghosh, Global Director for Grids of the Future at the Global Energy Alliance.

Building domestic capacity for the BESS ecosystem

A notable proposal discussed at the meeting was the establishment of a High-Quality Centre for BESS. This would provide a platform for Vietnamese agencies, organisations, businesses and educational institutions to learn from experience and pursue cooperation on capacity building and access to financing in implementing energy transition initiatives.

Under the direction outlined at the meeting, if appropriately developed, the Centre could serve as a focal point for research, training, testing, knowledge sharing and the exchange of experience in energy storage technologies, drawing on technical results and stakeholder networks developed through previous BESS activities. It could also support capacity building for regulators, electricity utilities, businesses, universities and research institutions in Vietnam.

The Electricity Authority and its partners will continue discussions on the Centre’s operating model, functions, resources and implementation roadmap, ensuring that these are aligned with the practical needs and development requirements of Vietnam’s power system.

“The growing role of battery energy storage creates a need to strengthen domestic expertise among the agencies and organisations responsible for planning, managing, deploying and operating these systems. The High-Quality Centre will provide a platform to build expertise, share experience and develop the capabilities Vietnam needs as BESS deployment expands,” said Dr Hoang Anh, Director of the Electrical Engineering Training Programme at the School of Electrical and Electronic Engineering, Hanoi University of Science and Technology.

Vietnam also needs to continue examining the services that BESS can provide. Depending on market structures, pricing mechanisms and intended uses, BESS can deliver a range of services, from time-shifting energy and supporting peak demand to providing system operation support services.

Clearly defining these services, mobilisation mechanisms, operating arrangements and payment mechanisms will require further study to create conditions for BESS to develop in line with the needs of Vietnam’s power system.

From national-level cooperation to applications at electricity utilities

Cooperation between the Global Energy Alliance and its Vietnamese partners is expanding from policy dialogue and technical assistance to practical applications at electricity utilities.

In addition to the MoU signed with Vietnam’s Electricity Authority, the Global Energy Alliance on 29 September also signed an MoU on energy transition and power grid modernisation with Ho Chi Minh City Power Corporation (EVNHCMC).

During the initial phase, the two sides will implement a six-month “Utility Charter” programme to assess EVNHCMC’s existing systems, identify priorities and develop an implementation roadmap.

Potential areas of cooperation include developing a digital twin of the distribution grid, managing distributed energy resources and developing BESS solutions.

Implementation at the utility level provides an opportunity to assess digital solutions and storage technologies under real operating conditions, while generating additional data and experience for the modernisation of Vietnam’s power grid.

The Electricity Authority under the Ministry of Industry and Trade and the Global Energy Alliance exchange the signed Memorandum of Understanding. (Source: Global Energy Alliance)

Towards a role for Vietnam in regional power grid modernisation

These activities form part of the Global Energy Alliance’s Grids of the Future programme, which focuses on connecting solutions for grid digitalisation, distributed renewable energy and energy storage with the practical conditions of individual countries.

In Vietnam, the combination of national-level dialogue, digital tool development, utility-level applications and domestic technical capacity building is creating a foundation for modern power grid solutions to be tested, refined and deployed in practice, laying the groundwork for wider regional application.

“Vietnam has significant potential to become an important hub for power grid modernisation in Southeast Asia. This is an opportunity for Vietnam to develop solutions suited to its domestic needs while building experience that can be shared and applied more widely across the region,” said Minh Nguyen, Country Director for Vietnam at the Global Energy Alliance.

“Modernising Vietnam’s power grid requires continuous cooperation and technical coordination across the energy sector as the system integrates an increasing share of renewable energy and new technologies. Through cooperation with the Global Energy Alliance, we are jointly identifying practical priorities in areas such as grid digitalisation and battery energy storage systems, while strengthening the technical foundations needed to support implementation,” stressed Tang The Hung, Deputy Director General of the Electricity Authority under the Ministry of Industry and Trade.

In addition to the priority areas outlined above, the Electricity Authority would like the working group to continue studying and proposing new cooperation initiatives based on Vietnam’s practical needs and the strengths of international partners. The aim is to ensure that the MoU is implemented in a substantive manner, with concrete outputs that support agencies and businesses in carrying out relevant activities.

The two sides aim to develop the working group into a regular, flexible and effective mechanism for dialogue, thereby strengthening the sharing of knowledge, experience and technology and mobilising the resources needed for Vietnam’s energy transition.

Through future cooperation, the Electricity Authority and the Global Energy Alliance aim to make a practical contribution to modernising the power system, developing energy storage and enhancing the integration of renewable energy sources, while supporting Vietnam in meeting the requirements for a safe, reliable, flexible and sustainable power system in the new development phase.