The rapid growth in electricity demand and the accelerating shift toward renewable energy are increasing pressure on Vietnam’s power system, highlighting the urgent need for large-scale energy storage solutions.
In Gia Lai province, pumped-storage hydropower is expected to play a central role in stabilizing the grid, improving renewable energy integration, and supporting long-term sustainable development.
Reporters from Gia Lai Newspaper and Radio & Television spoke with Deputy Director of the Department of Industry and Trade, Trần Thúc Kham, about the province’s strategy.
* Mr. Kham, as electricity demand rises rapidly and renewable energy accounts for a larger share of the power mix, what role does pumped-storage hydropower play in ensuring stable and proactive energy security?
Deputy Director of the Department of Industry and Trade, Trần Thúc Kham. Photo: Hải Yến
- We are entering a period of rapidly increasing electricity demand, aligned with ambitious economic growth targets. At the same time, the energy structure is shifting strongly toward renewable sources such as wind and solar power. This transition is inevitable, but it also introduces significant fluctuations into the system.
The challenge today is not only ensuring sufficient electricity supply, but also maintaining stable and efficient system operations. In this context, pumped-storage hydropower can be considered a critical “hinge” of the power system.
Its operating principle allows electricity to be stored on a large scale. When excess electricity is available—particularly during midday peaks in solar generation—the plant uses that power to pump water to an upper reservoir. When demand increases or renewable output declines, the stored water is released to generate electricity.
This mechanism helps maximize renewable energy use, reduce waste, and lessen dependence on conventional power sources. Pumped-storage hydropower plants can also adjust output very quickly, helping regulate frequency and stabilize voltage, which becomes increasingly important as renewable energy expands.
In that sense, pumped-storage hydropower is not simply a power plant. It is a system-regulation tool that supports proactive and sustainable energy security.
* Given Gia Lai’s strong wind and solar potential, how will pumped-storage projects support renewable energy development in the province?
- Despite the province’s significant renewable energy potential, development has faced limitations due to the grid’s absorption capacity. At times, wind and solar generation has been very high, but output could not be fully utilized because of low demand or transmission bottlenecks.
Pumped-storage hydropower can directly address this issue. With flexible operations, the system can absorb surplus electricity during off-peak hours and release it when demand rises. This reduces renewable energy curtailment and minimizes wasted electricity.
The biggest advantage is improving the grid’s ability to absorb renewable power. With stronger storage infrastructure, the province will have more capacity to attract additional renewable energy projects, particularly in areas where potential remains underdeveloped.
In addition, pumped-storage hydropower provides ancillary services such as frequency regulation, voltage control, and reserve capacity, helping maintain stable system operations despite fluctuations in renewable generation.
Over the long term, these projects will not only improve the efficiency of existing renewable plants but also establish a foundation for sustainable and well-regulated green energy development.
Operational model of the Vĩnh Thạnh Pumped-Storage Hydropower Project. Photo: ĐVCC
*The Vĩnh Thạnh Pumped-Storage Hydropower Project is the province’s first project of this kind and is currently undergoing preparatory procedures. What measures will Gia Lai take to balance energy development, environmental protection, and socio-economic benefits?
- The Vĩnh Thạnh Pumped-Storage Hydropower Project, located in Vĩnh Thạnh commune, has a planned capacity of 600 MW and a total investment of nearly VND11 trillion (approximately USD423 million). The project has already been included in the revised Power Development Plan VIII and related provincial planning frameworks.
The investor is currently finalizing appraisal documents, with construction expected to begin in 2027.
One advantage of the project is that it will utilize the existing Định Bình reservoir, helping minimize environmental impacts compared with building an entirely new facility. Its closed-loop pump-and-release cycle is also designed to avoid significant impacts on water resources.
However, our position is clear: energy development must go hand in hand with environmental protection. The project will be required to carry out comprehensive environmental impact assessments and maintain strict oversight during both construction and operations to ensure no harmful effects on ecosystems or local communities.
In socio-economic terms, the project is expected to contribute between VND320 billion and VND350 billion annually to the provincial budget (approximately USD12.3 million to USD13.5 million).
But beyond direct revenues, we believe the broader spillover effects are even more important.
The province will prioritize local employment, strengthen vocational training, and encourage local businesses to participate in the project’s service chain. Revenue generated from the project will also be reinvested into infrastructure, education, and other key sectors.
In the longer term, the project is expected to enhance Gia Lai’s competitiveness in attracting investment into renewable energy and green industries. With energy storage infrastructure in place, the province’s power system will become more flexible and more attractive to investors.
More importantly, the project reflects Gia Lai’s broader ambition to develop a synchronized green energy ecosystem that integrates power generation, storage systems, and grid infrastructure.
The objective is not only to increase the share of clean energy, but also to build a modern, secure, and highly adaptable energy system.
We are determined that Gia Lai will not only develop energy to meet immediate demand, but also create a flexible and sustainable green energy ecosystem that can support long-term growth.
The Vĩnh Thạnh Pumped-Storage Hydropower Project represents a new approach to energy development—one focused not only on electricity generation, but also on energy storage, regulation, and system optimization. This will be key to helping Gia Lai unlock its renewable energy potential and strengthen its position in the region’s green energy transition.
Petrolimex Gia Lai One Member Limited Liability Company will fully transition all of its retail fuel outlets to E10 RON 95-III and V biofuel from June 1, 2026, ending the sale of conventional gasoline across its entire network.
Gia Lai is restructuring its One Commune One Product (OCOP) program with a stronger focus on food products, prioritizing quality standardization, value-chain production, brand development and market expansion.
Cooperatives in Gia Lai province are accelerating a transition to organic pepper cultivation, aligning with stricter global market standards while boosting export value and long-term sustainability.
An alternate wetting and drying (AWD) irrigation model deployed across eastern communes during the 2025-2026 winter-spring crop has significantly reduced emissions, saved water and improved rice yields, according to provincial agricultural authorities.
Gia Lai province is intensifying efforts to attract investment and accelerate sustainable economic growth in 2026, targeting 170 new projects as part of its broader 2026-2030 development strategy focused on infrastructure expansion, administrative reform and green industrial development.
New rice varieties are significantly improving production efficiency and supporting more sustainable farming practices in Vietnam’s Gia Lai province, as farmers report higher yields, lower costs, and stronger market linkages.
Gia Lai province is accelerating its transition to low-emission agriculture, targeting carbon credit markets and long-term sustainability as part of its commitment to achieve net-zero emissions by 2050.
More than four decades after waves of post-reunification migration, Vietnam’s Central Highlands province of Gia Lai has transformed from sparsely cultivated land into a major agricultural production hub, driven by settlers who built new lives on basalt soil.
Farmers in the remote western districts of Gia Lai province are increasingly adopting clean agriculture practices, boosting product value, stabilizing market access and improving incomes through standardized, technology-driven production models.
The route, part of the eastern North-South Expressway for the 2021-2025 phase, will begin operations at 11:30 a.m., according to Cao Viet Hung, Deputy Director of Project Management Board No. 2 under the Ministry of Construction.
A surge in offshore fishing activity has brought unusually large oceanic tuna to Tam Quan fishing port in central Vietnam, including a specimen weighing more than 300 kilograms, as total catches nearly doubled year-on-year.
Once a barren and economically underdeveloped commune, Kon Chiêng is emerging as a growing hub for large-scale livestock investment, driven by proactive local governance and close coordination with businesses.
Authorities in Gia Lai province have launched a livestream campaign aimed at accelerating agricultural sales by connecting local producers with e-commerce platforms, officials said on April 24.
Authorities in Gia Lai province are intensifying efforts to help household businesses comply with new tax and financial regulations, despite many remaining exempt from personal income tax and value-added tax due to low revenue levels.
Gia Lai province reported strong public investment disbursement in the first quarter of 2026, allocating more than VND 1.763 trillion (about $72 million), equivalent to 12.3% of the Prime Minister’s target and 11.3% of the provincial plan.
Producers in Gia Lai province are accelerating the adoption of science and technology to upgrade the quality, consistency and market reach of products under the “One Commune, One Product” (OCOP) programme, positioning themselves for deeper integration into domestic and international supply chains.
Authorities in Gia Lai province have reaffirmed strong support for businesses as Vietnam rolls out an ambitious plan to develop 1,000 pioneering enterprises by 2030, aimed at driving innovation, productivity and global competitiveness.
Vietnam’s extension of a 2% value-added tax (VAT) reduction, lowering the rate from 10% to 8%, is delivering broad benefits to businesses and consumers, as authorities widen its scope and duration under Government Decree No. 174/2025/NĐ-CP.
Vietnam’s tax authorities are rapidly implementing a series of sweeping reforms in 2026 aimed at easing financial burdens on households and businesses, while stimulating production, consumption and overall economic growth.
The Standing Committee of the Gia Lai Provincial Party Committee has approved a VND 190 billion (approximately USD 7.8 million) investment to construct the Đăk Pơ Kơ Bridge, a project deemed critical to restoring transport links and supporting local trade.
Coffee farmers in Gia Lai are increasingly turning to weather index insurance as a practical tool to manage climate-related risks, helping stabilise incomes and strengthen the resilience of Vietnam’s coffee sector.
A migrant farmer from northern Vietnam has transformed aquaculture in a Central Highlands commune, turning commercial fish fry breeding into a key driver of income growth and poverty reduction.
Sweet potato farmers in Vietnam’s Phú Thiện commune are facing mounting financial losses after prices plunged by nearly half at the peak of the harvest season, driven by oversupply and weak market demand.
The authorities are stepping up efforts to tighten discipline in public investment management, aiming to address persistent inefficiencies and prevent waste across construction projects, officials said.
