Vietnam has secured €547mn ($617mn) in financing this week for the country's power transmission network and the construction of a 1.2GW pumped storage hydropower project, as part of its just energy transition partnership (JETP) with developed nations.
Vietnam's national power transmission corporation and French public finance institution Agence Francaise de Developpement (AFD) signed a credit facility agreement of €67mn to build transmission lines and substations in two provinces. And six development finance institutions — including AFD and the European Investment Bank — will provide up to €480mn in financing to state-owned Vietnam Electricity, for the hydro project.
Vietnam signed the JETP with the EU, UK, France, Germany, the US, Italy, Canada, Japan, Norway and Denmark in December 2022.The US withdrew from the agreement earlier this year, after pulling out in of the landmark Paris climate agreement and other global climate pacts in January.
"The EU and UK remain fully committed to the JETP as co-leads", the UK government said today.
The JETP aimed to mobilise $15.5bn in public and private finance to support Vietnam's goals to reach net zero greenhouse gas emissions by 2050.
Vietnam incorporated the JETP into its recently-revised power plan, which sets out goals to ramp up renewable energy capacity. The country aims to increase the share of renewable power to 28-36pc by 2030, excluding hydropower. The plan suggests that by 2030, wind power could account for up to 16.1pc of capacity and solar power up to 31.1pc.
The IEA put wind and solar at 3.3pc and 10.3pc, respectively, of Vietnam's installed electricity generation capacity in 2022. The plan sees coal-fired power accounting for a maximum of 16.9pc in 2030. The share of coal-fired power in Vietnam's electricity generation mix was 40.2pc in 2022, IEA data show.
South Africa, Senegal and Indonesia also have JETP agreements. Indonesia last month secured $60mn in funding under its JETP to develop solar power.
