The United States Mission to Vietnam, through the US Agency for International Development (USAID), and Ho Chi Minh City People’s Committee on September 20 launched a project to accelerate renewable energy and energy efficiency solutions to the city’s urban energy challenges.
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| The US Acting Consul General joined USAID Vietnam Mission and Ho Chi Minh City People’s Committee for the launch of a new USAID project that will help HCM City accelerate its green growth. Source: USAID Vietnam |
Joining in the launch celebration were USAID/Vietnam Mission Director Aler Grubbs, HCM City People’s Committee Vice Chairman Vo Van Hoan, Acting Consul General Graham Harlow, General Director of HCM City Department of Industry and Trade Bui Ta Hoang Vu, and representatives from provincial departments.
“The United States is at the forefront of supporting Vietnam’s transition to a clean, secure, and market-driven energy sector,” said USAID/Vietnam Mission Director Grubbs at the event.
“Through our latest energy project, we are proud to partner with HCM City to power its green growth through more renewable energy and energy efficiency solutions. Together, we will attract green investments that bring a cleaner environment and lower energy costs to residents, and further cement HCM City’s role as a driver of Vietnam’s green economy,” Grubbs added.
The new, US$14 million project, called USAID Vietnam Urban Energy Security, works with the HCM City and Da Nang city governments to improve urban planning related to clean energy, mobilize investment, and integrate clean energy solutions into the power system. These include rooftop solar, electric vehicles, waste-to-energy, and other energy efficiency solutions.
For HCM City, the project plans to deploy at least 400 megawatts of clean energy, mobilize at least US$540 million in public and private investments, and take at least 15 innovative solutions to urban energy issues to market.
The project builds on prior years of USAID assistance to Vietnam for its clean energy transition. For instance, over the past five years, USAID support to government regulators, banks, investors, and private sector developers helped spur solar and wind investments in Vietnam totaling more than US$300 million.
In addition, USAID supported the Government of Vietnam in developing its Power Development Plan no.8, which sets the overarching vision and operating principles for Vietnam’s power sector from 2021 to 2030.
USAID worked closely with the Ministry of Industry and Trade (MOIT) to develop Minimum Energy Efficiency Performance Standards to reduce energy consumption in industrial production.
The project is also helping Danang to accelerate renewable energy and energy efficiency solutions to the city’s urban energy challenges.
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| Delegates at the event. Source: USAID Vietnam |
Fighting climate change and promoting the use of clean energy have always received special attention from the Vietnamese Party and State. The country has also signed and issued many documents related to these issues over the past years.
According to preliminary surveys and assessments, Vietnam’s potential of onshore wind power is about 217GW, and offshore wind power is over 160GW. The feature of offshore wind power is long operating hours and high efficiency.
International energy organisations calculated the potential of solar power in the country at 434GW, including terrestrial solar power with 309GW, offshore solar power with 77GW and rooftop solar power with 48GW.
As of the Government’s incentive mechanism, more than 16,400MW of solar power sources have been put into operation, including 7,755MW of rooftop solar power sources since 2019, most of them concentrated in the southern and central regions.
VNA citied data from the Vietnam Electricity (EVN) that, in 2021, the untapped electricity output of the aforementioned renewable energy sources, which has increased to 1.68 billion kWh including 1.25 billion kWh of solar power, had to be reduced by 430 million kWh as per the EVN programme.
Experts consider the increasing untapped output of renewable energy sources as “a huge waste” while other thermal power sources are in short supply, and the electricity price is increasing.
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