10:03 | 07/11/2019 Industry
(VEN) - The U.S. Agency for International Development (USAID) has announced a new $14 million, 4-year project promoting urban energy security in Vietnam.
The USAID Vietnam Urban Energy Security project (2019-2023) will promote deployment of advanced, distributed energy solutions in selected urban areas in Vietnam, including Ho Chi Minh City.
It will address Vietnam’s rapidly growing energy demand and air pollution in urban areas by working with city governments and creating business opportunities for entrepreneurs, USAID said.
Specifically, the project will support deployment of advanced distributed energy solutions including household rooftop solar technology, next generation battery storage technology, and cleaner forms of transportation.
It has been estimated that energy demand in Vietnam is currently increasing by 10 percent annually, making it critical for the country to use modern, clean energy technologies to sustain its impressive economic growth and protect human health and the environment, the agency said.
Since 2017, USAID and the Ministry of Industry and Trade (MOIT) MoIT have worked together to modernize national energy policies including introduction of a Direct Power Purchase Agreement (DPPA) mechanism and expanding renewable energy and natural gas utilization under the eighth Power Development Plan (PDP8).
The project inauguration event, held on November 1 in Ho Chi Minh City, was attended by USAID Deputy Administrator Bonnie Glick, USAID/Vietnam Mission Director Michael Greene, leaders of the Vietnamese Ministry of Industry and Trade (MOIT)’s Electricity and Renewable Energy Authority, and Ho Chi Minh City’s Department of Industry and Trade.
Glick donated PLEXOS software and associated hardware to MoIT, saying the state-of-the-art tools would allow the ministry to simulate electrical utility operations over a multi-year period to set optimal generation and transmission targets.
Business leaders attending the event also expressed their desire to work with USAID and the Vietnamese government to generate increased private sector investment in the energy sector and assist Vietnam in meeting its energy security goals.