The European Union (EU) has officially announced a financial support package of up to €430 million (over VND 13,000 billion at current exchange rates) for the Bac Ai Pumped Storage Hydropower Plant project.
The Bac Ai Pumped Storage Hydropower Plant is not only a key project under the Just Energy Transition Partnership (JETP) but also the first and only project of its kind in Vietnam to date.
This announcement was made on the afternoon of October 9th (Belgian time) at the second Global Gateway Forum, held in Brussels, Belgium, from October 9th to 10th.
This event marks a significant milestone in energy cooperation between Vietnam and Europe, contributing to the promotion of green and sustainable energy transition, aiming towards the Net Zero goal by 2050.
“The Bac Ai Pumped Storage Hydropower Plant plays a pivotal role in the collaboration between Vietnam and Europe, aiming to build a stable, sustainable, and green energy system, while encouraging private investment and fostering green growth. Through the Global Gateway Forum, the EU is translating commitments into tangible actions, for the benefit of people, the planet, and shared prosperity.” – stated Jozef Síkela, European Commissioner for Energy, at the Forum.
Why is the Bac Ai Pumped Storage Hydropower Plant Vietnam’s “first and only” project?
The Bac Ai Pumped Storage Hydropower Plant was approved by the Prime Minister in the National Power Development Plan for the 2021-2030 period, with a vision to 2050. It is Vietnam’s first pumped storage hydropower project, classified as a Group A, special-grade energy project, located in Bac Ai and Ninh Son districts, Ninh Thuan province (formerly).
The plant is invested by Vietnam Electricity (EVN) with a total installed capacity of 1,200 Megawatts and a total investment of over VND 21,100 billion.
According to the plan, the plant’s second phase commenced on February 22, 2025, with the first turbine scheduled for completion in December 2029, the last turbine in December 2030, and the entire project becoming operational by May 2031.
The project’s uniqueness lies in its pumped storage hydropower technology – an advanced energy storage method, likened to a “giant battery” – unprecedented in Vietnam.
The Bac Ai Pumped Storage Hydropower Plant is Vietnam’s first pumped storage hydropower plant, currently under construction. Illustrative image
Unlike conventional hydropower, which only converts hydraulic energy into electricity in one direction, pumped storage hydropower operates bidirectionally: (1) Pumping water from a lower reservoir to an upper reservoir to store excess energy, and (2) Releasing water through turbines to generate electricity during peak demand.
This technology was first developed in Italy and Switzerland in the 1890s and is currently experiencing a global revival due to its ability to stabilize power grids and efficiently store renewable energy.
In Vietnam, the Bac Ai Pumped Storage Hydropower Plant is expected to enhance the stability of the national power system, facilitate the expansion of renewable energy, reduce carbon emissions, and promote sustainable development.
Notably, this multi-trillion-dong plant is closely linked to the Ninh Thuan Nuclear Power Plant project – another key initiative.
The stable baseline power from the nuclear plant will be used to pump water for storage, helping to balance the system, generate peak-load electricity, and optimize investment efficiency for both projects. The synchronized implementation of these two projects will contribute to ensuring national energy security, supporting the transition to a green economy, and fulfilling commitments made at COP26.
With the Bac Ai Pumped Storage Hydropower Plant, Vietnam is entering a new era of energy storage, where pumped storage hydropower technology plays a crucial role in balancing electricity supply and demand, especially as the share of renewable energy sources like wind and solar increases.
According to the Atlas of the Australian National University, the global potential for storage from similar projects is up to 86 million GWh (equivalent to about 2,000 billion EV batteries), and Vietnam can leverage this to reduce dependence on fossil fuels, lower CO2 emissions, and enhance rapid power recovery capabilities.
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