Vietnam moves toward time‑of‑use residential electricity tariffs and studies storage payment models

The Ministry of Industry and Trade said it is considering a pilot of time‑of‑use pricing for household electricity use. Currently, tiered rates apply to all residential customers, while peak‑off‑peak pricing is used only for industrial and commercial users. The proposal would target high‑consumption homes and those operating large appliances, requiring the replacement of single‑rate meters with electronic meters capable of measuring consumption in normal, peak and off‑peak periods. The ministry highlighted technical and social‑impact assessments before any nationwide rollout.

Meanwhile, energy analysts outlined how other countries compensate battery energy storage systems (BESS) and pumped‑hydro storage. Payment mechanisms include markets for ancillary services such as frequency control (e.g., Australia’s FCAS), dynamic regulation and containment services (United Kingdom), and capacity payments (United States). These examples are presented as possible frameworks for Vietnam as it reforms its electricity market and integrates more renewable generation.

Both discussions aim to reduce peak‑load pressure, encourage shifting of electricity use to off‑peak hours, and provide appropriate revenue streams for storage assets that enhance grid flexibility.