31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Apr 28, 2021 / 17:20

US contributes to private sector-led energy transition in Vietnam

USAID-supported project in 2015-2021 helps mobilize private investments for renewable energy and improve compliance with industrial energy efficiency.

The United States Agency for International Development (USAID) has promoted the engagement of private sector in Vietnam’s energy transition over the past five years.

 USAID-supported Hong Phong 4 Solar Power Plant in Vietnam's central province of Binh Thuan. Photo: USAID Vietnam

The USAID Vietnam Low Emission Energy Program (V-LEEP) in the partnership with Vietnam’s Ministry of Industry and Trade (MoIT) has enhanced Vietnam’s capacity in developing long-term energy strategies, mobilizing private investments for renewable energy, and improving compliance of industrial energy efficiency.

V-LEEP contributed to developing 300 megawatts of wind and solar from six private sector-led projects thanks to the mobilization of US$311 million, reported at the project completion ceremony on April 28.

Over the last three years, these renewable energy projects, along with savings from energy efficiency improvements, have reduced about 730,000 tons of greenhouse gas emissions, or the equivalent of 365,482,807 kilograms of coal.

 US Chargé d’Affaires a.i. Christopher Klein at the event on April 28. Photo: US Embassy in Hanoi

US Chargé d’Affaires a.i. Christopher Klein said at the event that the growth of solar power in Vietnam over the last two years is inspiring, and Vietnam now stands as a leader in renewable energy across Southeast Asia.

He noted that “the private sector has driven much of this growth in solar development, highlighting the strong support from the Government of Vietnam for private sector-led development.”

Over the years, V-LEEP also collaborated with MoIT to provide technical support for Vietnam’s future power grid and the development of the Eighth Power Development Plan, which was recently published on the ministry's website for public comments.

The project also assisted with formulating a Direct Power Purchasing Agreement pilot program, which, after final approval, will enable private enterprises (such as Nike, AB InBev, Adidas) to partner with Vietnam to provide capital for new solar and wind development projects, and increase Vietnam’s contribution to climate change mitigation.

It has also supported MoIT in developing Minimum Energy Efficiency Performance Standards to reduce energy consumption in industrial production, furthering Vietnam’s ambitious energy efficiency goals.

USAID said it will maintain the momentum of V-LEEP and deepen its collaboration with MoIT through its new program, V-LEEP II. Over the next five years, USAID V-LEEP II will support Vietnam while continuing its transition to a clean, secure, and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector.