Vietnam has set some of the most ambitious clean energy goals in Asia. Under the Power Development Plan VIII and the Just Energy Transition Partnership, the country aims for renewable energy to account for 30 per cent of installed capacity by 2030 and up to 75 per cent by 2050. Achieving these targets will require not only investment and infrastructure, but also policies that create confidence for both domestic and international stakeholders.

In a talk with VIR last week, experts highlighted three interconnected technologies that will be central to this transition: OSW, battery storage, and green hydrogen. Each has potential in its own right, but together they form a system that can provide stability, flexibility, and resilience.

OSW represents Vietnam's strongest natural advantage, with long coastlines and favourable conditions compared with regional peers. Battery storage offers the ability to balance intermittent supply, while green hydrogen provides an option for long-term storage and decarbonisation of hard-to-abate industries.

“The trio of OSW, batteries, and hydrogen is particularly well suited to Vietnam,” noted Trung Ghi, partner and head of Energy and Utilities Practice for Southeast Asia at Arthur D. Little. 

He explained that while OSW is a promising resource, it cannot meet demand consistently without storage technologies. Batteries can bridge short-term gaps, and hydrogen can expand storage capacity from hours to months, creating a more reliable system overall.

Looking ahead, Vietnam's participation in the emerging Asian power grid will be critical. By exporting renewable energy to neighbours such as Singapore through subsea cables, the country could enhance both its economic stability and its geopolitical importance, he said. This will also spur the development of local supply chains, new jobs in OSW, and auxiliary industries to support subsea transmission.

However, ambition alone will not guarantee success. Developing a regulatory framework that gives clarity to investors is just as important as expanding infrastructure.

"Vietnam has taken encouraging steps, such as new feed-in tariffs for solar projects that integrate storage, but a more comprehensive policy framework is needed for OSW and hydrogen," Ghi emphasised.

Source: Vietnam Investment Review