Vietnam Electricity begins building 1,200 MW pumped storage hydropower
State utility Vietnam Electricity (EVN) kicked off the construction of phase 2 of the 1,200-MW Bac Ai pumped storage hydropower plant on Saturday.
The project, located in Vietnam’s south-central province of Ninh Thuan, is the first of its kind in Vietnam.
With four turbines of 300 MW each, the project has an investment of VND21,100 billion ($826.6 million). EVN is the project investor and it is co-financed by many foreign institutions, such as AFD, EIB, JICA, KfW, CDP, and Proparco.

EVN holds a groundbreaking ceremony for phase 2 of Bac Ai pumped storage hydropower plant in Ninh Thuan province, south-central Vietnam, February 22, 2025. Photo courtesy of EVN.
Phase 1 of the project, which is the outlet works of the pumped storage hydropower plant, was completed in March 2021.
This project holds significant importance for the national power system, particularly as numerous renewable energy plants (solar and wind) with low stability are being integrated into the grid.
The primary function of the project is to generate electricity to cover the peak of the system’s load diagram, helping to balance fluctuations in the load curve by utilizing pump power during off-peak hours and generating electricity during peak demand periods.
EVN aims to put the first turbine into operation in December 2029, the second in April 2030, the third in August 2030, and the fourth in December 2030, and complete the whole project in May 2031.
Bac Ai pumped Storage hydropower plant and the upcoming Ninh Thuan 1 and 2 nuclear power plants, all in Ninh Thuan province- a renewable energy hub, are set to become the baseload power for Vietnam’s electricity system, Ninh Thuan Vice Chairman Trinh Minh Hoang said at the ceremony.
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