An energy storage project costing nearly $3 million will be built in Khanh Hoa Province as part of a new joint venture.

Funded by the U.S. Mission Vietnam, the project aims to demonstrate how it can reduce power losses and help Vietnam integrate more renewable energy into the nation’s power system.

AMI AC Renewables, a joint venture between AMI Renewables of Vietnam and AC Energy of the Philippines, signed an MOU with American corporation Honeywell in Ho Chi Minh City on Tuesday to integrate a Honeywell Battery Energy Storage System into a 50-megawatt peak solar farm in Khanh Hoa, according to a U.S. Consulate General statement.

The power plant will be the first in Vietnam to deploy the Battery Energy Storage System.

Nguyen Nam Thang, CEO of AMIAC Renewables, said at the signing ceremony there was a determination to put the project into operation before the third quarter of 2024.

He said the project would be able to demonstrate its practical benefits such as stabilizing the power grid, storing curtailed electricity, and becoming a pilot project for organizations to study.

He added that he hoped this could lead to new policies, regulations, and pricing mechanisms for the new auxiliary services to enhance efficiency, grid infrastructure safety, and bring major socioeconomic benefits.

U.S. Consul General Susan Burns, who witnessed the signing of the agreement, said: “We hope that the experience and data this pilot project yields can inform the development of a comprehensive policy and regulatory framework for energy storage, pave the way for its wider adoption, and spur additional private sector investment in this innovative technology.”

According to the U.S. Mission, the project is part of its commitment to the Just Energy Transition Partnership with Vietnam.

Vietnam signed the partnership with several international partners last year to support the nation’s clean energy transition and deliver net-zero emissions by 2050.

According to vnexpress