HCMC – The Urban Energy Security project of the United States Agency for International Development (USAID) Vietnam and Vietnam Electricity (EVN) signed a memorandum of understanding on December 14 to formalize a partnership that will support EVN’s efforts to expand rooftop solar energy development in Vietnam.
Energy demand in Vietnam is increasing by 10% annually, making it critical for the country to use modern and clean energy technologies to sustain its impressive economic growth, protect human health and the environment, and provide electricity services to over 20 million households.
Recognizing the importance of green growth, EVN has set high targets for increased rooftop solar capacity by 2025 and is putting in place tools to help consumers understand how to adopt cleaner energy.
However, increased rooftop solar adoption poses new challenges to EVN’s revenue generation and introduces potential negative impacts to the grid, such as reduced voltage quality or power losses.
To address these challenges and ultimately increase rooftop solar capacity, EVN will conduct utility financial impact analyses of various rooftop solar deployment scenarios in Danang City, which will be supported by USAID via this memorandum. As a result, policymakers and utility operators will be informed about short-term impacts in the early phases of their rooftop solar programs.
USAID will also help EVN evaluate rooftop solar systems in its electricity distribution network and build EVN’s capacity to mitigate adverse impacts to the grid.
In addition, EVN will receive support to design and implement innovative communication campaigns to promote solar rooftop system investment and installation.
“USAID is helping Vietnam transit to a more resilient energy sector, powered by renewable energy. We are excited to work with EVN and hope our extensive experience in promoting clean energy in the region, access to technical expertise and global convening power will help Vietnam realize its goals in renewable energy,” said Ann Marie Yastishock, mission director at USAID Vietnam.
Over the past five years, USAID has committed over US$40 million to support the energy sector in Vietnam and plans to commit an additional US$36 million over the next five years. USAID has been working closely with the Government of Vietnam and EVN to adopt international best practices in the design and implementation of utility performance to ensure access to secure, sustainable and reliable energy.