AC Energy Corp. and its partner, AMI Renewables, announced Monday they will pilot a utility-scale battery energy storage system (BESS) in Vietnam that aims to maximize the efficiency and reliability of renewable energy in the Southeast Asian country.

AMI AC Renewables, a joint venture between AC Energy and AMI Renewables, received a $3 million grant from the US Consulate in Ho Chi Minh City to develop the project.

The 15 MWh/7.5 MW Khanh Hoa Energy Storage project will be integrated into the joint venture’s operating 50 MW solar farm.

“Energy storage is the key to unlock the potential of renewables and is a vital component of the energy transition,” said Patrice Clausse, chair of AMI AC.

“We are very excited about the opportunities that lie ahead in harnessing this enabling technology, and together with AMI, we will aim to secure Vietnam’s renewable energy sources while helping the country achieve its sustainability goals,” Clausse added.

The project bodes well for AC Energy’s ambition to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.

The energy unit of the Ayala Group is planning to offload all its coal investments by 2030.

“Our solar plant in Khanh Hoa province is an ideal place to demonstrate how energy storage can help Vietnam reach its full renewable energy potential,” said Nguyen Nam Thang, CEO of AMI AC.