The new funding supports USAID’s ongoing efforts to reduce risk and transaction costs for project developers to encourage increased private sector investment in Vietnam’s renewable energy development - a key driver of economic growth and resilience.
A wind project in Gia Lai province (Photo: VNA)
Specifically, the new funding announced today will support the TSV and Asia Renewables’ onshore wind farms (350MW) in Gia Lai province, including producing an optimized wind turbine generator layout design, conducting a finance-grade pre-construction energy yield assessment, the preparation of pre-construction documentation, and the development of the necessary tendering package for construction.
It will also support the INGINE Pacific's pilot off-grid wave technology on Ly Son Island, Quang Ngai province, including conducting an environmental and social impact assessment, which will help INGINE Pacific minimize the risk of interruptions to project implementation, optimize project management for more efficient and cost-effective operation, and maximize local development benefits, such as encouraging the practice of good corporate citizenship. Vietnam boasts 3,000 km of coastlines and more than 3,000 islands and archipelagos, making wave power a potential prime energy source for the country’s clean energy transformation.
The Bamboo Capital Group's (BCG) offshore wind farms in Ca Mau (300MW) and Tra Vinh (200MW) provinces will also be assisted, including conducting feasibility studies and environmental and social impact assessments that meet international standards in order to assist BCG Energy as it seeks international financing.
The funding is being provided through USAID INVEST, a global USAID initiative that helps reduce barriers for investors to mobilize and channel private capital into high-impact areas.
With a growing private sector and international manufacturing and export base, Vietnam has one of the most dynamic emerging economies in the Southeast Asia region, however current investment in energy, infrastructure, and health is insufficient to meet the country’s growth and development objectives.
Through USAID INVEST, USAID seeks to stimulate increased international investment in Vietnam and to strengthen the capacity of the public and private sectors to work together to finance the country’s development priorities, including mitigating the impacts of climate change by supporting Vietnam’s transition to clean energy systems.
By engaging in multiple sectors, USAID INVEST activities will result in improved access to health services, greater financial inclusion, increased sustainability of energy, and stronger public-private partnerships./.