Vietnam’s government officially released the Battery Energy Storage System (BESS) revenue framework, becoming the first ASEAN country to establish a complete market-oriented mechanism for energy storage. This breakthrough policy provides clear revenue expectations for energy storage investors and will drive rapid development of Vietnam’s energy storage industry.
Key Policy Points
The framework issued by Vietnam’s Ministry of Industry and Trade includes the following core elements:
- Multiple Revenue Mechanisms: BESS projects can generate revenue through capacity leasing, ancillary services, and peak-valley arbitrage
- Priority Dispatch Rights: Energy storage systems enjoy priority dispatch rights equal to renewable energy
- Electricity Pricing Mechanism: Establishment of time-of-use electricity pricing that reflects storage value, with peak-valley price ratios reaching 3:1
- Investment Protection: 10-year Power Purchase Agreement (PPA) guarantees to reduce investment risks
Market Impact
According to MESA analysis, this policy will bring the following market impacts:
- Investment Boom: Vietnam is expected to add 5-8 GWh of energy storage capacity in the next 5 years
- Technology Import: Attracting Chinese and Korean energy storage companies to accelerate deployment in Vietnam
- Regional Demonstration: Providing a reference model for other ASEAN countries developing energy storage policies
Expert Opinion
Prof. Ir. Dr. Jasrul Jamani Jamian stated: “Vietnam’s policy innovation marks a new phase for the ASEAN energy storage market. Malaysia is also actively studying and developing similar frameworks, expected to be announced within the year.”
Implications for Malaysia
Vietnam’s experience provides the following insights for Malaysia:
- Policy First: Clear revenue mechanisms are key to attracting investment
- Market-Oriented: Allowing energy storage to compete fairly in the electricity market
- Long-term Commitment: 10-year PPAs provide certainty for investors