The European Commission and the Ministry of Industry and Trade (MoIT) officially launched the European Union (EU) – Viet Nam Energy Facility worth 108 million euros on Tuesday in Hanoi.

Tran Tuan Anh (left) and Stefano Manservisi (right) discuss the EU’s Energy Sector Policy Support Programme. 

This is a technical assistance facility to support implementing the EU’s Energy Sector Policy Support Programme, aimed at enhancing access to sustainable energy in rural areas in Việt Nam and contributing to a more sustainable energy sector through promoting efficient, clean and renewable energy available to all citizens.

At the launching, the European Commission Director-General of International Co-operation and Development, Stefano Manservisi, said: "Our ambitious programme of 108 million euros will not only support the Government of Việt Nam in its objectives on electricity supply to rural, mountainous and island areas to provide reliable and sustainable electricity access to up to 1.2 million households, but it will also enhance the governance of the energy sector to facilitate the shift to a more sustainable energy development path in Viet Nam.”

“While the EU response cannot address all these challenges, it can together with other development partners influence policies and choices that aim at making the sector cleaner and more sustainable," Stefano added.

The energy sector of Viet Nam has developed rapidly and sustainably over the past years, which is a key factor to maintain the high socio-economic growth of the country. The Government of Viet Nam is committed to ensuring provision of power to the whole country, including in the remote areas where 2 per cent of the population still do not have access to electricity, said MoIT minister Tran Tuan Anh.

In this context, the Vietnamese Government highly respects and appreciates the EU for its support in sustainable energy development in Viet Nam through its Multi-Annual Indicative Programme for Viet Nam 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 Viet Nam signed on December 1, 2017, Anh added.

The EU indicative grant allocation of 346 million euros supporting the energy sector in Viet Nam 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. It reaffirms the European Union’s leading role in supporting the fight against climate change and in the promotion of renewable energies.

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. In addition, the project aims to supply electricity for one island district and two island communes.

The EU-Viet Nam Energy Facility, set up with co-financing by the EU and the German Federal Ministry for Economic Co-operation and Development-BMZ in the framework of Phase II of the Renewable Energy and Energy Efficiency Project, will be operated by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, a provider of international co-operation services for sustainable development, in close collaboration with the MoIT.   — VNS