EU offers Vietnam €108 million to supply electricity to rural areas

This programme is under the framework of phase II of renewable energy and energy efficiency project.

"Our ambitious programme of €108 million, will not only support the Government 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 spoke at the launching ceremony.

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. Meanwhile, 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 sustainable, Manservisi emphasized.

Previously, EU supported in sustainable energy development in Vietnam through its Multi-Annual Indicative Programme (MIP) for the 2014-20 period and particularly the Financing Agreement for the Energy Sector Policy Support Programme to enhance access to sustainable energy in rural areas of Việt Nam signed on December 01, 2017.

Accordingly, 23 subprojects on electricity supply to rural and mountainous areas from national electricity grids will be invested in 23 provinces; two subprojects on electricity supply to rural areas from renewable energy sources will be deployed Cao Bang province and Bach Long Vi island. Furthermore, two underground submarine cable subprojects will supply electricity to Tran Island in Quang Ninh province and Nhon Chau island in Binh Dinh.

It is expected that at the end of the programme about 750 villages will be supplied with electricity, with about 60,000 households having electricity. Another goal of the programme is to supply electricity for one island district and two island communes.

The EU indicative grant allocation of 346 million euros supporting the energy sector in Vietnam for the 2014–20 period is the largest grant contribution provided by the EU so far to a single country in support of sustainable energy.