EVN proposed to clarify the effectiveness of solar power with battery storage

Vietnam Electricity Group (EVN) has just sent a document to the Electricity Department for comments on the plan to build a power generation price frame in 2026 for ground-mounted and floating solar power plants combined with battery storage systems (BESS).

EVN believes that installing a storage system will increase the total project investment, leading to a higher electricity price range than conventional solar power plants. This means that electricity buyers will have to pay higher costs for projects that incorporate storage.

In fact, according to the current price framework of the Ministry of Industry and Trade, solar power projects with battery storage enjoy a higher price of about 140-190 VND per kWh compared to projects without storage, equivalent to an increase of 11-14%.

However, according to EVN, the investment efficiency as well as the efficiency of the storage system with power system operation is currently “unclear”. Therefore, the group recommends that the Ministry of Industry and Trade clarify control rights and responsibilities, installation goals, mobilization mechanisms and responsibilities of the investor in ensuring the availability of the storage battery system.

EVN also requests management agencies to evaluate the actual needs of the power system before allowing the development of solar power or wind power projects combined with storage. This is to avoid excess investment as has happened in some countries in the region.

According to EVN’s calculations, the price range for ground-mounted solar power with storage is about 1,104-1,550 VND per kWh, depending on the area and the plan to determine the investment rate of the storage system. With floating solar power with BESS, the price ranges from 1,299-1,823 VND per kWh.

The highest price is nearly 1,830 VND per kWh with the floating solar power option in the North. Meanwhile, the lowest rate of more than 1,100 VND per kWh applies to ground-mounted solar power in the South.

To build the price frame, EVN assumes the storage system has a capacity equal to 10% of the solar power plant’s capacity. BESS investment rates are referenced from bidding projects of a number of domestic power companies, the Chinese market and the global average.

In addition, EVN said that some input parameters for calculation are currently for reference only. The Group requested the Ministry of Industry and Trade to get more opinions from consulting units and independent international organizations before approving the official price framework.

In the context of many localities being merged, EVN also proposed that the Ministry of Industry and Trade soon guide the division of provinces into the North, Central, and South when applying regional electricity price frames to avoid problems arising during the implementation process.

BESS storage battery is a type of electrical energy storage, charging and discharging to generate electricity when the power system needs it, playing a balancing role and ensuring stable operation of the power system. The revised Power Plan VIII targets the development of 10,000-16,300 MW of storage systems by 2030 to support the integration of renewable energy.