US contributes to advancing Vietnam’s energy sector

Through V-LEEP, MoIT and USAID worked together to enhance Vietnam’s capacity in developing long-term energy strategies, mobilize private investments for renewable energy, and improve compliance of industrial energy efficiency.

“We appreciate very much the strong relationship that has grown between Vietnam’s Ministry of Industry and Trade (MoIT) and USAID V-LEEP over the last five years. We are grateful for MoIT’s leadership and commitment to clean energy development, not just in words, but through real action,” said US Chargé d’Affaires a.i. Christopher Klein at the event, adding 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. 

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.”

V-LEEP contributed to the mobilization of US$311 million to successfully build 300 megawatts of wind and solar from six private sector-led projects. 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.

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 MOIT’s website for public comment.

V-LEEP 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.

The project has also worked closely with MoIT in developing Minimum Energy Efficiency Performance Standards to reduce energy consumption in industrial production, furthering Vietnam’s ambitious energy efficiency goals.

USAID 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 as it continues 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.