Voith Consortium Wins Major Contract for Vietnam’s First Pumped Storage Plant – 1,200 MW Bac Ai Project

Heidenheim – Technology group Voith, together with Chinese company Powerchina, has been awarded the contract for the electromechanical equipment of Vietnam’s first pumped storage power plant. The 1,200 MW Bac Ai project is scheduled to start operations in stages by the end of 2030.

Global expansion of pumped storage capacity has accelerated markedly. According to the International Hydropower Association (IHA), plants with a record capacity of 11.7 GW were commissioned in 2025, up from 8.4 GW the previous year. China is driving the trend, while other Asian countries are also investing in additional storage capacity.

Voith to Supply Turbines and Generators for 1,200 MW Pumped Storage Plant

The Bac Ai pumped storage plant is being built in Vietnam’s Khánh Hòa province. The plan provides for four machine sets with a capacity of 300 MW each. The consortium of Voith Hydro Shanghai and Powerchina Zhongnan Engineering will supply the main electromechanical equipment. Voith leads the consortium and will deliver pump turbines, motor generators, turbine governors, and excitation and control systems, among other components.

According to state-owned utility Vietnam Electricity (EVN), the contract is worth around VND 4.46 trillion (around USD 174 million). The figure refers to the entire consortium. Voith’s share is not known. Total investment in the pumped storage plant amounts to around VND 21.1 trillion (around USD 823 million).

An international financing package of almost EUR 480 million is planned for the project. The French development bank has already signed a loan agreement worth EUR 76 million. According to EVN, as of November 10, 2026, details of a loan agreement with Germany’s KfW still had to be agreed.

The contract for the electromechanical equipment was signed on October 26, 2026. The first machine unit is scheduled to be connected to the grid in December 2029, with the remaining units following by December 2030. Full completion is planned for May 2031.

Vietnam Plans Up to 6,000 MW of Pumped Storage Capacity

Bac Ai is currently Vietnam’s only pumped storage plant under construction. The national Power Development Plan VIII (PDP8), revised in April 2025, envisages pumped storage plants with an installed capacity of 2,400 to 6,000 MW by 2030. Even to reach the lower end of that target, Vietnam would need to realise at least a further 1,200 MW of pumped storage capacity by 2030.

At the same time, Vietnam plans a significant expansion of renewable energy. By 2030, between 46.5 and 73.4 GW of solar capacity and 26.1 to 38.0 GW of onshore and nearshore wind energy are to be installed. The government also plans battery storage with a capacity of 10,000 to 16,300 MW.

Global Pumped Storage Market: 243 GW Under Construction – China Dominates

The international project pipeline shows the further growth potential of the global pumped storage market. According to the IHA, projects with around 243 GW are under construction worldwide. A further 188 GW are in planning or pre-financing, and announced projects add another 190 GW. In total, the global pumped storage pipeline amounts to around 620 GW.

China accounts for the bulk of this. Pumped storage plants with around 218 GW are under construction there, equal to just under 90 percent of the global construction pipeline. Outside China, ongoing construction projects add up to roughly 25 GW by calculation.

The Bac Ai contract also shows that large pumped storage projects involving European power plant technology suppliers are being realised outside the dominant Chinese market.

Source: IWR Online, 11 Nov 2026