Vietnam—Urban Energy Security (VUES)

Client: U.S. Agency for International Development

Duration: 2019-2024

Region: Asia and the Pacific

Country: Vietnam

Solutions: Environment

The Vietnam Urban Energy Security activity (VUES) comes as Vietnam stands on the cusp of an energy revolution: dramatic increases in investment in solar and wind energy, electric cars and motorcycles, and batteries domestically and across Southeast Asia demonstrate real potential for uptake. As Vietnam grapples with the need to meet its energy needs in the near term while simultaneously meeting its Nationally Determined Contributions under the Paris Agreement, the development of the nation’s eighth Power Development Plan offers a new opportunity to promote renewable energy.

In tandem with these national-level considerations, VUES supports the U.S. Agency for International Development’s investments in Vietnam’s energy sector by driving engagement down to the city level, complementing existing programming such as the Vietnam Low Emission Energy Program in alignment with USAID/Vietnam Country Development Cooperation Strategy, the USAID Private Sector Engagement Strategy, and Vietnam’s Journey to Self-Reliance.

VUES promotes the deployment of 400 megawatts of advanced and distributed energy solutions in urban centers, ranging from solar panels and storage batteries to energy-efficient vehicles. DAI will be raising at least $600 million, from private and public sources to meet the project’s energy goals.


Sample Activities

  • Use challenges and prize competitions to engage private sector actors with innovative ideas—for technologies like energy storage to smooth demand “peaks,” rooftop solar, energy efficiency, or electric public transit—by funding pilots and proofs of concept.
  • Use blended finance approaches for new energy project development.
  • Mobilize public and private sector investment for the deployment of advanced, distributed energy systems.

Select Results

  • Supported the Vietnam Electricity Corporation (EVN) to conduct a utility technical and financial impact analysis of various rooftop solar deployment scenarios, evaluate rooftop solar systems in its electricity distribution network, and build EVN’s capacity to mitigate adverse impacts to the grid.
  • Provided transaction advisory support to five major energy developers to deploy 400 MW of distributed energy systems
  • Facilitated lending from eight Vietnamese banks and financial institutions to mobilize $600 million for advanced distributed urban energy systems
  • Supported two cities to develop clean energy action plans to reduce carbon emissions to zero by 2050)
  • Supported two cities to provide cleaner energy and energy efficiency options, potentially benefiting 10.1 million citizens
  • Launched the Vietnam Innovation Exchange Program II to promote engagement between corporate entities and innovative energy startups in Ho Chi Minh City and Da Nang through product piloting and commercialization.


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