HCMC – The United States Agency for International Development (USAID) announced US$860,000 in assistance for three renewable energy projects in Vietnam during the fourth Indo-Pacific Business Forum late last week.
The new funding supports USAID’s ongoing efforts to reduce risks 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.
Specifically, the funding will support the TSV and Asia Renewables’ onshore wind farms (350 MW) in the Central Highlands province of Gia Lai. This will include producing an optimized wind turbine generator layout design, conducting a finance-grade pre-construction energy yield assessment, preparing pre-construction documentation and developing the necessary tendering package for construction.
Besides, it will assist the INGINE Pacific’s pilot off-grid ocean wave energy technology on Ly Son Island, Quang Ngai Province, including conducting an environmental and social impact assessment.
The assistance will help INGINE Pacific minimize the risk of interruptions to project implementation, optimize project management for more efficient and cost-effective operations, and maximize local development benefits such as encouraging the practice of good corporate citizenship.
Vietnam boasts 3,000 kilometers 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.
Bamboo Capital Group’s (BCG) offshore wind farms in Ca Mau (300 MW) and Tra Vinh (200 MW) provinces will receive support to conduct feasibility studies and environmental and social impact assessments that meet international standards 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.
According to USAID, with a growing private sector and international manufacturing and export base, Vietnam has one of the most dynamic emerging economies in the Southeast Asian region. However, the 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 improve access to health services, greater financial inclusion, increased energy sustainability and stronger public-private partnerships.