EU provides Vietnam with $500 million for hydropower project, aiming at energy transition
The $500-million EU package aims to enhance Vietnam’s power stability, expand renewables and advance the country’s net-zero goals.
THE HANOI TIMES — The European Union (EU) has announced a support package worth 430 million euros (US$500 million) to advance the Bac Ai Pumped Storage Hydropower Project, a key initiative under Vietnam’s Just Energy Transition Partnership (JETP).
The announcement came on October 9 at the second Global Gateway Forum in Brussels, Belgium. The event gathered EU Commissioner for Energy Jozef Síkela, Vietnamese Deputy Prime Minister Bui Thanh Son and representatives from participating countries and partners.
The second Global Gateway Forum took place in Brussels, Belgium, from October 9 to 10. Photo: VGP
Commissioner Síkela called the Bac Ai project “a cornerstone of joint efforts between Vietnam and the EU to build a greener, more stable and sustainable energy system.”
He said the EU, through the Global Gateway initiative, is “turning commitments into concrete actions for people, for the planet and for shared prosperity.”
The support package is part of the Team Europe framework, which includes the EU, its member states and major development finance institutions such as the French Development Agency (AFD), the European Investment Bank (EIB), Germany’s KfW Development Bank, Italy’s Cassa Depositi e Prestiti (CDP) and PROPARCO, AFD’s private sector investment arm.
The Bac Ai Pumped Storage Hydropower Project is one of Vietnam’s largest energy transition investments under JETP. It aims to improve grid stability and support higher renewable energy integration.
It reflects the Global Gateway approach, which combines public and private finance, applies high standards and builds long-term partnerships for sustainable infrastructure development.
Located in the south-central province of Khanh Hoa, the Bac Ai project appears in the National Power Development Plan for 2021–2030, with a vision to 2050 (Power Plan 8), approved by the Prime Minister.
The plant will have a capacity of 1,200 MW, with four turbine–generator units of 300 MW each. The total investment is about VND21.1 trillion (US$828 million), funded by loans and capital from Vietnam Electricity (EVN).
Unit 1 will be completed in December 2029, Unit 4 in December 2030 and the entire project in May 2031.
Between 2021 and 2027, the EU will provide at least 293 million euros (US$340 million) in direct support to Vietnam.
European partners are expected to contribute over 2.8 billion euros (US$3.2 billion) under JETP, reaffirming Europe’s long-term commitment to Vietnam’s clean energy transition and green growth.
