HCMC – The European Union (EU) has announced a 430-million-euro support package for Vietnam’s Bac Ai pumped-storage hydropower project in Khanh Hoa Province, marking a key initiative under the Vietnam Just Energy Transition Partnership (JETP).
The announcement was made on October 9 during the second Global Gateway Forum held in Brussels, Belgium, according to the Government news website (baochinhphu.vn).
The event was attended by EU Commissioner for Energy Jozef Síkela, Deputy Prime Minister Bui Thanh Son, and representatives from various countries and international organizations.
Síkela described the Bac Ai project as a milestone in Vietnam–EU cooperation, aimed at building a greener, more stable, and sustainable energy system while encouraging private investment and supporting green growth.
A pumped-storage hydropower plant functions as a large-scale renewable energy storage system, storing electricity when supply exceeds demand and releasing it back to the grid during peak consumption periods.
The Bac Ai project is Vietnam’s first of its kind. The first turbine is expected to begin operation in December 2029, followed by the fourth unit in December 2030, with full completion slated for May 2031.
Once operational, the project is expected to enhance grid stability and flexibility, expand renewable energy capacity, and help Vietnam meet its carbon reduction goals.
The 430-million-euro package will be implemented through the Team Europe initiative, comprising the EU, its member states, and European development finance institutions such as the French Development Agency (AFD), the European Investment Bank (EIB), Germany’s KfW Development Bank, Italy’s Cassa Depositi e Prestiti (CDP), and PROPARCO, the private sector arm of AFD.
Between 2021 and 2027, the EU plans to allocate at least 293 million euros to Vietnam. With contributions from European partners, total funding for JETP-related initiatives in the country is expected to exceed 2.8 billion euros, focusing on green infrastructure, sustainable energy transition, and enhanced power connectivity across ASEAN.
