EVN Team Europe Energy Transition Facility (ETEF)

28.12.2023 Press and information team of the Delegation to VIETNAM

Overall objectives

To provide Technical Assistance (TA) to support Vietnam Electricity (EVN) in (i) the implementation of its energy transition strategy and (ii) the preparation and implementation of EVN projects linked to Vietnam’s COP26 commitments towards carbon neutrality and coal phasing out.

Specific objectives

1) Better prepare EVN for its transition and increase confidence of investors in EVN’s Roadmap and its consistency with COP26 and Just Energy Transition Partnership (JETP) Vietnam commitments (including its corporate disclosure and reporting activities);

2) Accelerate due diligences and identify the gaps and mitigate the risks (appraisal/implementation) for large energy transition projects;

3) Reduce the gaps between EVN practices and international standards in project appraisal and project implementation;

4) Promote gender equality through EVN’s internal organization or by supporting the development of gender sensitive renewable energy projects;

5) Accelerate funding mobilization for the energy transition.

Brief summary / description

This Action responds through a #TeamEurope approach to the implementation of the Just Energy Transition Partnership with Vietnam (JETP) agreed in December 2022, and shall enable EDFIs, to move from a project per project approach to a programme-based approach to support key prioritized investments by EVN. This initiative is highly relevant to and well aligned with in the context of the EU’s Global Gateway strategy, especially under its climate and energy thematic priority. Two projects under the ETEF (Bac Ai pump storage hydropower plant and Tri An hydropower plant extension) are also flagship projects under Global Gateway strategy.

This programme falls within the Priority area 1 “Climate-responsive digital circular economy” of the EU - Vietnam Multiannual Indicative Programme 2021-2027 (MIP). The action is fully in line with the MIP's specific objectives "Greener, smart, and more efficient energy consumption and production".

The Facility is structured along five following components supported by the EU contribution:

1) Technical assistance for EVN’s strategic Energy Transition investment projects preparation

2) Technical assistance for EVN’s strategic Energy Transition investment projects implementation

3) Technical assistance for EVN‘s capacity building (procedures and skills improvements) on Energy Transition project management

4) Technical assistance on EVN’s decarbonation strategy to support EVN to elaborate and implement its energy transition strategy, including EVN’s responsiveness and readiness to the increased demand from private investors in the field of RE generation & Facility coordination.

5) Energy transition investments: financed with loans of EDFIs (AFD, KfW and EIB).

Expected results

Strengthen policy dialogue on EVN energy transition achievements and alignment to Vietnam 2045 roadmap and commitments made at COP26, and strengthen EVN capacity in project appraisal and implementation. The facility also aims to reinforce power infrastructures, especially advanced infrastructures necessary for the integration of intermittent RE and to improve clean/green/renewable energy and energy efficiency.

Total budget (EUR)

1.27 billion (EU’s grant blended with AFD’s loan)

EU Contribution (EUR)

16,640,000 (grant)

Duration

2023 - 2031

Implementing organisation

AFD

Funding instrument

NDICI Bilateral (EFSD+)

Benefitting zone

Vietnam