Following numerous discussions on solar power development mechanisms in Vietnam, a recent focal point of interest for citizens and businesses is Deputy Prime Minister Tran Hong Ha’s proposal for policy drafters to calculate the pricing mechanism for electricity bought from energy storage systems.

Installing solar panels combined with Battery Energy Storage Systems (BESS) will help avoid wasting excess electricity during peak sunny periods, supplementing power during evenings. Importantly, storage batteries contribute to stabilizing the power grid, mitigating fluctuations due to weather conditions.

To encourage individuals and businesses to invest in storage batteries, experts suggest financial support policies, particularly researching appropriate pricing mechanisms for reselling electricity back when national grid demand peaks, especially in the evening.

Dual benefits of storage installation After multiple meetings on Vietnam’s solar power development mechanisms, the latest focus for citizens and businesses is Deputy Prime Minister Tran Hong Ha’s suggestion for policy drafters to calculate the pricing mechanism for buying electricity from storage systems.

Mr. Ha proposed that the Ministry of Industry and Trade study methods to incentivize and financially support individuals installing rooftop solar panels combined with energy storage devices for resale to the Vietnam Electricity (EVN) at peak rate times.

In discussions with Tuoi Tre about Vietnam’s new energy storage mechanism, businesses agree that regulations on installing storage devices are crucial, potentially mandatory for large-scale solar power plants to ensure grid stability.

Le Anh Vu, director of an energy company, notes that while storage costs have reduced, the initial investment in solar and storage systems is still considerable, making return on investment slower. Therefore, investing in storage for electricity resale to the national grid may not be effective without a pricing mechanism that values electricity from storage systems higher during peak hours.

Previously, electricity prices from solar systems were fixed, but now higher prices during peak hours are necessary to encourage businesses to store electricity during low-demand times and sell during high-demand periods. Only then will individuals feel confident investing in storage, according to Mr. Vu.

Similarly, Nguyen Thuy Ngan, SolarBK’s brand director, points out that despite business interest in storage, high costs and unclear policies have led to hesitancy.

Ngan emphasizes the need for supportive tax and fee policies to reduce installation costs, enabling businesses to confidently invest in storage.

Regulations needed for storage ratios in solar installations In an interview with Tuoi Tre, Pham Phuoc Binh, director of Bincon Corporation, states that integrating solar power with storage will address renewable energy instability issues, especially solar’s volatility.

He highlights that irregular power supply can strain EVN’s grid management, but storage batteries can alleviate some of these challenges. However, Binh stresses the importance of technical considerations for safe operation and rational investment.

Specifically, systems combining solar power with storage utilize integrated inverters with charging and programming systems optimized for solar radiation and grid interaction.

Therefore, existing solar power systems, already grid-connected, must calculate replacement costs, especially integrating new storage systems with higher capacities than new investment projects. Additionally, space considerations are crucial for safe installation, particularly ensuring fire safety.

Nguyen Van Tuan, director of a solar installation company in Ho Chi Minh City, views storage batteries as foundational for grid stability, providing backup power for EVN during electricity shortages, especially at night or during summer peaks.

To maintain system stability, Tuan recommends regulations requiring a suitable storage ratio (e.g., 10-20% of total installation capacity), ensuring consistent power supply even during adverse weather.

Cost of storage batteries

Responding to Tuoi Tre, Tran Thi Thu Van, SolaX Power’s national director, notes significant reductions in storage battery costs recently, making it feasible for individuals to invest under 100 million VND for systems with capacities around 6-7 kW.
Elva Wang, Southeast Asia director at Trina Solar, states that storage battery prices have dropped by 50% since last year, with common systems costing around $3,000 – $5,000 for 5 kW storage.

New electricity consumption record

On June 21st, the Vietnam Electricity Corporation (EVN) reported record highs in maximum capacity and daily electricity consumption nationwide for June, driven by increased demand during recent sunny periods.
Data from the National Power System Dispatch Center shows peak capacity reached 49,533 MW at 1:30 PM on June 19th, with total consumption on June 14th hitting 1.025 billion kWh nationwide.
EVN notes that without recent evening rain, record electricity consumption could have been even higher, placing significant strain on supply.