Overall objectives

To contribute to a sustainable energy transition in Vietnam.

Specific objectives

1) Improved energy efficiency;

2) Larger share of renewable energy in the energy mix;

3) Improved performance of the Viet Nam Energy Information System (VEIS).

Brief summary / description

In order to sustain its ambitious socio-economic development pathway, Vietnam needs to further develop its provision of reliable and sustainable energy services. In light of Vietnam's climate change commitments, the need for mainstreaming environmental protection and concerns about energy security, the Partner aims to accelerate its energy transition towards a higher share of clean and renewable energy, while at the same time improving energy performance and reducing energy losses.

The programme contributes to the implementation of the Just Energy Transition Partnership (JETP) with Vietnam supporting the country's low-emission and climate resilient development, as well as supporting it to accelerate the just transition and decarbonisation of the electricity system, and develop new economic opportunities to support Vietnam's transition towards net zero future.

The action will be implemented mainly through a Sector Reform Performance Contract. Complementary support measures will be provided to enhance institutional capacities and the legal and technical framework, support the development of the private sector and increase overall awareness on the benefits of energy efficiency and renewable energy solutions.

Expected results

Induced outputs contributing to Specific Objective (Outcome) 1:

1.1 Legal and technical frameworks on economical and efficient use of energy are amended and/or supplemented;

1.2 Network of energy efficiency and cleaner production units is expanded;

1.3 Average percentage of energy consumption for the industrial sectors/sub-sectors is reduced;

1.4 Designated Energy Users apply the Energy Management System as regulated.

Induced outputs contributing to Specific Objective (Outcome) 2:

2.1 Existing mechanisms to encourage investment in developing renewable energy power generation (i.e. FIT) are revised;

2.2 Direct Power Purchase Agreements (DPPA) are allowed and the electricity market is progressively adjusted to allow for an optimised generation and uptake of renewable energy;

2.3 On-site renewable or hybrid energy supply for remote, deep-lying and offshore areas are supported.

Induced outputs contributing to Specific Objective (Outcome) 3:

3.1 Legal framework set up and prepared for information infrastructure investment;

3.2 VEIS organisational capacity and infrastructure are strengthened.

Total Budget (EUR)

142,000,000

EU Contribution (EUR)

Budget support: 121,000,000

Complementary support measures:

• EU - Vietnam Sustainable Energy Transition Facility (the EVSET Facility)
• IEEP - Accelerating energy efficiency in larger industries through energy management systems, system optimization and the promotion and adoption of energy efficiency in small and medium-sized enterprises
• AIS4EE - Accelerating Innovative Start-ups for Energy Efficiency
• PAR3E – Public Awareness Raising in Renewable Energy and Energy Efficiency in Vietnam

Duration

2021 – 2027

Implementing organisation

Budget support: Ministry of Industry and Trade on behalf of the Government of Vietnam

Complementary support measures:

• The EVSET Facility: STANTEC
• IEEP: UNIDO
• AIS4EE: Global Green Growth Institute (GGGI)
• PAR3E: Oxfam 

Funding instrument

DCI Bilateral

Benefitting zone

Vietnam

Reference

https://setp.vn/