Vietnam’s Clean Energy Moment: Four Projects Worth Watching
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Vietnam added solar capacity faster than almost any country in the 2020s. Now it is trying to do something harder: build a grid that can run on wind, sun and stored water without sacrificing reliability. Here are the projects and programs that best show where the country is headed.
The foundation: a big solar and wind base
Vietnam has real capacity to build on. IRENA data puts 2025 capacity at 6.2GW of wind, 19.3GW of solar and 24.7GW of hydropower. The government’s revised power plan sets much higher goals, targeting up to 73.4 GW of solar, 38 GW of onshore and nearshore wind, and 34.7 GW of hydropower by 2030. By the end of 2025, non-hydro renewables made up roughly 27.9% of installed capacity, with hydropower at about 28.1%.
1. Bac Ai: Vietnam’s first big pumped-storage plant
Solar and wind are only as useful as the grid’s ability to absorb them. That is why the Bac Ai project may matter more than any single wind farm. The 1,200MW facility, being developed by EVN, moved into its main construction phase in early 2026, with the first unit due in December 2029 and full commercial operation by the end of 2030. It is expected to provide peak shaving, frequency regulation and reserve capacity in southern and central Vietnam. Work on the main underground powerhouse began on January 22, 2026. The plant effectively works as a giant battery, pumping water uphill when power is cheap and releasing it at peak demand. EVN calls it the country’s first pumped storage hydropower facility.
2. Offshore wind: the big bet
Vietnam’s coastline is long and windy, and offshore wind is central to the long-term plan. The plan calls for 6,000MW by 2030 and about 17,000MW by 2035, rising to 113,000-139,000MW by 2050. Progress is still at an early stage. In January 2026, the government assigned nearly 64,000 hectares of sea to EVN and Petrovietnam for survey work. EVN received 24,000 hectares near the Long Chau archipelago and Bach Long Vi Island for the Bac Bo projects, while Petrovietnam received over 39,800 hectares off Lam Dong for the Nam Trung Bo 1 project.
Private developers are also pushing in. Vingroup’s energy arm has proposed a 3,000MW offshore wind facility in Ca Mau aimed at exporting electricity, and the province says up to 15,000MW of offshore capacity has been designated for it. That is a proposal, not an approved project, and the province urged the company to work through transmission solutions first. The long-discussed Thang Long project off Binh Thuan, once targeted to start generating power by 2025, is still listed as in development. The gap between ambition and delivery is the main risk for offshore wind in Vietnam.
3. Da Nang: a city-scale model
Smaller-scale plans may also prove influential. Da Nang aims to add more than 1 GW of renewable capacity in 2026-2030, covering small hydro, pumped storage, utility-scale and rooftop solar, onshore and nearshore wind, and biomass. The plan is notable for where it focuses: industrial zones, economic zones and the Free Trade Zone, with direct power purchase agreements between generators and large consumers. The city also wants 50% of government offices and households to install rooftop solar for self-consumption. If the model works, other cities could copy it.
The real test: delivery
Vietnam’s challenge is less about resources than about execution. Transmission lines, storage and clear rules for selling power directly to industrial buyers will decide whether these projects reach the grid. Analysts also note that legacy issues from earlier solar and wind projects still weigh on investor confidence. Bac Ai suggests Vietnam can build the storage side, and Da Nang shows the demand side is ready. Offshore wind will be the hardest of the three to deliver, and the one with the most to gain.
