The Government of Vietnam (GVN) increasingly recognizes that renewable energy (RE) and energy efficiency help sustain economic growth, ensure energy security, and protect human health and the environment. The GVN has set a target of 6.5 percent electricity generation from RE by 2020 and 10.7 percent by 2030. The GVN has also set a target for businesses to reduce their energy consumption by 10 percent by 2020. V-LEEP helps the GVN develop and implement a framework that supports the achievement of these ambitious targets. V-LEEP also works with the private sector to accelerate clean energy investment and solutions.

SUPPORT VIETNAM’S LOW EMISSION DEVELOPMENT STRATEGY

Through V-LEEP, USAID and the GVN work together to harmonize national strategies, laws, policies, and regulations that encourage rapid deployment of cost-effective clean energy. For example, V-LEEP is working with the Ministry of Industry and Trade (MOIT) to transform Vietnam’s power market to a greener and more sustainable sector through innovative policy measures and approaches, supported by modern methods and data analysis. V-LEEP is also helping MOIT with its 8th Power Development Plan (2021-2030), which will strengthen national power planning capacity and shape the future of Vietnam’s power sector.

ACCELERATE PRIVATE INVESTMENT AND ACCESS TO RENEWABLE ENERGY

As Vietnam seeks to power homes and businesses with its own abundant and clean natural resources such as wind, solar, and biomass, V-LEEP helps the GVN accelerate development of RE projects. V-LEEP works with project developers, investors, and financial institutions to increase project investment readiness, access funding resources, and enhance local technical and financial capacities. V-LEEP also collaborates with the Electricity Regulatory Authority of Vietnam to enable the use of Direct Power Purchase Agreements (DPPAs). DPPAs allow large corporations to procure electricity directly from RE producers and in turn expand RE markets.

ADOPT MODERN ENERGY EFFICIENCY TECHNOLOGIES & PRACTICES

Vietnam’s industrial sector consumed 40 percent of the country’s energy resources in 2015 and increasing their energy efficiency is a top priority for achieving energy security in Vietnam. To support this objective, V-LEEP helps the GVN strengthen its policy framework on energy efficiency by developing industrial standards to reduce industrial energy intensity (energy consumed to manufacture a product) and adopt new techniques to ensure compliance with and enforcement of existing regulations.