Supporting Hydroelectric Electricity Production Increase in Vietnam

27.12.2023 Press and information team of the Delegation to VIETNAM

Overall objectives

The project aims to extend and maximise the power generation of the existing Ialy hydro-power plant in the Gia Lai Province.

Specific objectives

1) Reinforcing energy security in South Vietnam to cope with the increase in daily power consumption.

2) Supporting the development of renewable, low-carbon energy, therefore contributing to GHG emission reduction.

Brief summary / description

The Ialy Power Plant was commissioned in 2000, with 2 intakes, 2 penstocks and 4 turbines of 180 MW each for an existing installed capacity of 720 MW. The project will increase its size by 360 MW to a total of 1080 MW and contribute to increasing the generation of renewable energy in Vietnam. The programme contributes to the Global Gateway strategy, as it falls within the ‘climate and energy’ component of the strategy.

Expected results

The extension project includes one intake, one penstock and two turbines of 180 MW each in order to reach a total installed capacity of 1080 MW. The Technical Assistance (TA) will contribute to optimising operation and maintenance processes, and improve the health, safety and security standard of the infrastructure work. In addition to contributing to increasing the renewable energy generation in Vietnam, the extension of Ialy Hydro Power Plant - a base load plant - will compensate the operation/construction of similar capacity fossil fuel base load plants in Vietnam. The project therefore contributes strongly to Vietnam’s energy transition and, as such, to climate change mitigation.

Total budget (EUR)

204,140,000 (EU’s grant blended with AFD’s loan)

EU contribution (EUR)

2,140,000 (grant)

Duration

2018 – 2025

Implementing organisation

AFD

Funding instrument

DCI Regional: Asia Investment Facility (blending)

Benefitting zone

Vietnam (Gia Lai province)