EU to supports Vietnam in providing sustainable electricity to 1.2 million households in disadvantaged areas

(VNF) - 1.2 million households in disadvantaged localities will be provided with reliable and sustainable electricity access, it is one of the goal of the EU – Vietnam Energy Facility. The programme was jointly launched by the European Commission and the Ministry of Industry and Trade on Feb 27.

European Commission Director-General of International Cooperation and Development, Stefano Manservisi (R) and Minster of Trade and Industry, Tran Tuan Anh, at the press conference launching EVEF (source: EU in VN)

This programme aims to enhance access to sustainable energy in rural areas in Vietnam and contribute to a more sustainable energy sector by promoting efficient, clean and renewable energy available to all citizens.

The EU-Vietnam Energy Facility (EVEF), set-up under the co-financing by the EU and the German Federal Ministry for Economic Cooperation and Development-BMZ in the framework of Phase II of the Renewable Energy and Energy Efficiency Project, will be operated by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in close cooperation with the Ministry of Industry and Trade.

EVEF will serve as a technical assistance facility in support of the implementation of the European Union (EU)'s Energy Sector Policy Support Programme worth of 108 million euro.

Speaking at the launching ceremony, European Commission Director-General of International Cooperation and Development, Stefano Manservisi, said: "Our ambitious programme of €108 million, will not only support the Governement of Vietnam to achieve its objective of the 2013 – 2020 programme on electricity supply to rural, mountainous and island areas to provide reliable and sustainable electricity access to up to 1, 200,000 households in rural areas, but it will also enhance the governance of the energy sector to facilitate the shift to a more sustainable energy development path in Vietnam.”

European Commission Director-General of International Cooperation and Development, Stefano Manservisi, speaks at the press conference (source: EU in VN)

According to Manservisi, Vietnam is one of the most exposed countries in the world to climate change, is facing major energy challenges to maintain the path of its socio-economic development.

“While the EU response cannot address all these challenges, it can together with other development partners influence policies and choices that would aim at making the sector cleaner and more sutainable," he emphasized.

According to Minister of Industry and Trade, Tran Tuan Anh, the energy sector of Viet Nam has been developed rapidly and sustainably in the last few years. This development is a key factor to maintain the high socio-economic growth of the country.

The minister noted the Government of Vietnam’s commitment to its socio-economic development, ensuring provision of power to the whole country including in the remote areas where 2% of the population still do not have access to electricity.

“In this context, the Government of Viet Nam highly respects and is thankful to the EU for its support in sustainable energy development in Viet Nam through its Multi-Annual Indicative Programme for Viet Nam for the period 2014 – 2020 and particularly the Financing Agreement for the Energy Sector Policy Support Programme to enhace Access to Sustainable Energy in Rurla Areas of Viet Nam signed on 1 December 2017," he said.

In Vietnam, the EU is committed to further contribute to a more sustainable energy sector by promoting efficient, clean and renewable energy. Its indicative grant allocation of 346 million euro supporting the energy sector in Vietnam for the period 2014 – 2020 is the largest grant contribution provided by the EU so far to a single country in support of sustainable energy. It reaffirms the European Union's leading role in supporting the fight against climate change and in the promotion of renewable energies.

Vietnam has been considered as one of the world’s fastest-growing economies in recent years. The country’s high economic growth rate has led to increasing demand for energy. The demand is expected to increase in the upcoming period, driven mainly by further industrialisation and increased urbanisation, population and economic growth.

Meanwhile, in the world, renewable energy such as wind, solar, and biomass power, has become a strongly emerging trend.

In terms of renewable energy, "Vietnam has the chance to make more effective changes, save billions of US dollars, give people a better quality of life, and create many jobs in this sector", said John Kerry, honorary president of the Carnegie Endowment for International Peace.

However, it is still a nascent industry in Vietnam, despite the country’s great potential for growth, especially in solar energy.

The country’s energy policies have primarily focused on building up power generating capacity through investments in coal, gas and medium and large-scale hydropower. Sustainable energy development remains modest. In 2015, the share of renewable energies was 2% (without large hydropower) of the total installed power capacity.

As the cost of renewable energy technology tends to decrease, the transition towards a green economy will help contribute to cushioning impacts of climate change. Besides, more renewable energy sources and efficient energy use will improve the quality of air for residents, and create thousands of new jobs through the development of green technologies./.

( Phi Yen )