Thailand, Indonesia, Vietnam to boost pumped-storage hydropower - Nikkei Asia
Published December 18, 2025
Thailand, Indonesia, Vietnam to Enhance Pumped-Storage Hydropower
Thailand, Indonesia, and Vietnam are set to expand their investment in pumped-storage hydropower projects as part of a broader initiative to bolster renewable energy and enhance energy security in the region. This move comes as these Southeast Asian nations seek to transition away from fossil fuels and address the growing demand for electricity driven by economic development and population growth.
Pumped-storage hydropower is a proven technology that allows for the storage of energy generated during periods of low demand and its release during peak demand times. This capability is particularly valuable in the context of increasing reliance on intermittent renewable energy sources such as solar and wind power. By utilizing pumped-storage systems, these countries aim to stabilize their electricity grids and ensure a reliable power supply.
Thailand's Commitment to Renewable Energy
Thailand has set ambitious goals for renewable energy, aiming to generate 30% of its power from renewable sources by 2037. The country currently relies heavily on natural gas, which accounts for approximately 65% of its energy mix. The Thai government is actively promoting the development of hydropower, including pumped-storage projects, as part of its energy transition strategy.
One of the key projects under consideration is the construction of the Pak Mun Dam, which has the potential to serve as a significant pumped-storage facility. The government is also exploring partnerships with private investors to enhance funding and expertise in developing these projects. The focus on pumped-storage hydropower aligns with Thailand's goals of reducing greenhouse gas emissions and increasing energy independence.
Indonesia's Renewable Energy Expansion
Indonesia is also making strides in the development of pumped-storage hydropower as part of its commitment to increase the share of renewables in its energy mix. The country aims to achieve 23% of its energy from renewable sources by 2025, with hydropower playing a crucial role in this transition.
The Indonesian government has identified several potential sites for pumped-storage projects, particularly in mountainous regions where the geography is favorable for such developments. One of the notable projects is the Upper Cisokan Pumped Storage Power Plant, which is expected to have a capacity of 1,040 megawatts (MW) upon completion. This facility will not only enhance the reliability of the power supply but also support the integration of renewable energy sources into the grid.
In addition to new projects, Indonesia is also focusing on modernizing existing hydropower plants to improve their efficiency and capacity. This approach will help the country maximize its hydropower potential while minimizing environmental impacts.
Vietnam's Hydropower Development Strategy
Vietnam is taking significant steps to strengthen its hydropower infrastructure, with a particular emphasis on pumped-storage systems. The country has set a target of generating 15% of its electricity from renewable sources by 2030, with hydropower being a key component of this strategy.
The Vietnamese government is currently investing in several pumped-storage projects, including the Lai Chau Hydropower Plant, which has a total installed capacity of 1,200 MW. This facility is designed to enhance the stability of the national grid and accommodate the growing share of renewable energy sources.
Vietnam's focus on pumped-storage hydropower is also driven by the need to manage the variability of solar and wind energy generation. As the country continues to expand its renewable energy capacity, the integration of pumped-storage systems will be essential for maintaining grid stability and ensuring a consistent power supply.
Regional Collaboration and Investment
The collaboration between Thailand, Indonesia, and Vietnam in the development of pumped-storage hydropower projects underscores the importance of regional cooperation in addressing energy challenges. These countries are exploring opportunities for knowledge sharing, technology transfer, and joint investments to accelerate the deployment of hydropower systems.
International financial institutions and development banks are also showing interest in funding pumped-storage projects in the region. By providing financial support and technical expertise, these organizations aim to facilitate the transition to renewable energy and help Southeast Asian nations achieve their energy goals.
Challenges and Opportunities
While the expansion of pumped-storage hydropower presents significant opportunities for Thailand, Indonesia, and Vietnam, there are also challenges that need to be addressed. One of the primary concerns is the environmental impact of constructing new hydropower facilities, particularly in ecologically sensitive areas. Ensuring that projects are developed in an environmentally sustainable manner will be critical to gaining public support and minimizing negative consequences.
Additionally, securing financing for large-scale pumped-storage projects can be a hurdle, as these initiatives often require substantial upfront investment. However, with the increasing global focus on renewable energy and the potential for long-term returns, there is a growing interest from both public and private investors in funding these projects.
Conclusion
As Thailand, Indonesia, and Vietnam pursue their respective energy transition goals, the enhancement of pumped-storage hydropower systems will play a pivotal role in ensuring a reliable and sustainable energy future. By leveraging regional collaboration and investment, these countries are positioning themselves to meet the growing energy demands while contributing to global efforts to combat climate change.
The commitment to pumped-storage hydropower reflects a broader trend in Southeast Asia towards renewable energy development, highlighting the region's potential to become a leader in clean energy solutions. With continued investment and innovation, Thailand, Indonesia, and Vietnam are set to make significant strides in their renewable energy journeys.
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