The U.S. Agency for International Development (USAID) has launched a $36 million project designed to promote the use of clean energy in Vietnam.
U.S. Vice President Kamala Harris first announced the project during her visit to Vietnam in August 2021. Meanwhile, Marc Knapper, U.S. Ambassador to Hanoi, joined Vietnamese Deputy Minister of Industry and Trade Dang Hoang An and USAID Mission Director Ann Marie Yastishock for the June 3 project launch in the capital.
Named Vietnam Low Emission Energy Program II (V-LEEP II), the project builds on the success of V-LEEP I, which ran from 2015 to 2020.
“The U.S. government is proud to be a partner to Vietnam in its clean energy transition journey,” said Knapper. “We applaud your commitment at COP-26 to transition to a net-zero emissions economy by 2050, with international support. This USAID V-LEEP II program will be a cornerstone of U.S. support to Vietnam in achieving your climate change commitments.”
Under the initial project, USAID worked with Vietnam’s Ministry of Industry and Trade (MoIT) on the development of its National Power Development Plan VIII and the design of the direct power purchase agreement (DPPA) pilot program.
The DPPA will allow businesses in Vietnam to purchase electricity directly from private firms producing renewable energy, instead of through local power utilities. V-LEEP I also worked with the private sector to mobilize more than $311 million to build 300 megawatts of wind and solar projects, USAID said in a release.
V-LEEP II will continue its work with MoIT to increase clean energy deployment, through mobilization of private sector investment, project design support for developers, and technical assistance for lenders.
The new project, USAID said, aims to support 2,000 megawatts of renewable energy commissioned between 2020 and 2025 through private sector engagement. Through the project, the agency and Vietnam’s government will also continue collaboration to improve energy planning and operations practices to enhance energy sector performance.