The United States Agency for International Development (USAID) has announced the launch of the Vietnam Low Emission Energy Program II (V-LEEP II) to help the country strengthen energy security.

USAID facilitates private sector investment in solar energy in Vietnam.
(Photo: USAID)

This five-year, US$36 million program will accelerate Vietnam’s transition to a clean, secure, and market-driven energy system, USAID Vietnam Mission Director Ann Marie Yastishock said during the Indo-Pacific Business Forum in Hanoi on October 28.

For the past four years, the USAID Vietnam Low Emission Energy Program (V-LEEP) has worked with the Vietnamese Government to develop a Direct Power Purchase Agreement pilot program which will allow businesses to purchase clean power directly from solar and wind generators. It has also supported the Ministry of Industry and Trade to develop Vietnam’s Power Development Plan #8, which is expected to incorporate advanced energy solutions, more diversified sources of renewable energy, and a higher grid penetration to deliver this clean energy.

In addition, V-LEEP has worked with government regulators, banks, investors, and private sector developers to facilitate solar investments, resulting in solar energy now making up more than 10% of the country’s total generation capacity.

“As USAID V-LEEP comes to a close early next year, USAID/Vietnam remains committed to strengthening partnerships and developing innovative solutions for a clean, affordable energy future for Vietnam, by continuing our support through V-LEEP II,” said Director Yastishock.

USAID V-LEEP II will focus on improving government energy planning practices; increasing competition and private sector involvement in energy service provision; deployment of advanced, clean energy systems; and improving grid planning to incorporate clean energy transmission. It will also help Vietnam attract qualified investors for advanced energy projects and advise private firms to develop high quality and bankable projects.