The United States Agency for International Development (USAID), Vietnam Urban Energy Security project and Vietnam Electricity (EVN) signed a Memorandum of Understanding (MOU) on December 14 to formalize a partnership that will support EVN’s efforts to expand Rooftop Solar (RTS) energy generation in Vietnam.

Energy demand in Vietnam is increasing by 10% annually, making it critical for the country to use modern, clean energy technologies to sustain its impressive economic growth, protect human health and the environment, and provide electricity services to over 20 million households.

Recognizing the importance of green growth, EVN has set high targets for increased RTS capacity by 2025 and is putting in place tools to help consumers understand how to adopt cleaner energy. However, increased RTS adoption poses new challenges to EVN’s revenue generation and introduces potential negative impacts to the grid, such as reduced voltage quality or power losses.

To address these challenges and ultimately increase RTS capacity, EVN will conduct utility financial impact analyses of various rooftop solar deployment scenarios in Da Nang city, which will be supported by USAID via this MOU.  As a result, policymakers and utility operators will be informed about short-term impacts in the early phases of their rooftop solar programs. Through this MOU, USAID will also help EVN evaluate rooftop solar systems in its electricity distribution network and build EVN’s capacity to mitigate adverse impacts to the grid. In addition, EVN will receive support designing and implementing innovative communication campaigns to promote solar rooftop system investment and installation.

“USAID is helping Vietnam transition to a more resilient energy sector, powered by renewable energy. We are excited to work with EVN and hope our extensive experience promoting clean energy in the region, access to technical expertise, and global convening power will help Vietnam realize its goals in renewable energy,” said Mission Director Yastishock.

Over the past five years, USAID has committed over US$40 million to support the energy sector in Vietnam and plans to commit an additional US$36 million over the next five years. USAID has been working closely with the Government of Vietnam and the power utility to adopt international best practices in the design and implementation of utility performance to ensure access to secure, sustainable, and reliable energy.