The US Agency for International Development (USAID) on Friday announced a new project promoting urban energy security in Vietnam as the US government seeks to get more involved in the Southeast Asian country’s energy sector.

USAID Deputy Administrator Glick donated PLEXOS software to MOIT. Photo: US Embassy

The launch of the project took place at an event that was attended by visiting USAID Deputy Administrator Bonnie Glick, USAID/Vietnam Mission Director Michael Greene, leaders of the Vietnamese Ministry of Industry and Trade (MOIT)’s Electricity and Renewable Energy Authority, and Ho Chi Minh City’s Department of Industry and Trade.

The $14-million USAID Vietnam Urban Energy Security project will last from 2019 to 2023 and will promote deployment of advanced, distributed energy solutions in select urban areas in Vietnam, including Ho Chi Minh City, the US Embassy in Hanoi said in a statement.

The project will address Vietnam’s rapidly growing energy demand and air pollution in urban areas by working with city governments and creating business opportunities for entrepreneurs. The project will support deployment of advanced distributed energy solutions such as household rooftop solar technology, next generation battery storage technology, and cleaner forms of transportation.

Energy demand in Vietnam is currently increasing by 10% annually, making it critical for the country to use modern, clean energy technologies to sustain its impressive economic growth and protect human health and the environment.

Since 2017, USAID and MOIT have worked together to modernize national energy policies including introduction of a Direct Power Purchase Agreement (DPPA) mechanism and expanding renewable energy and natural gas utilization under the eighth Power Development Plan (PDP8).

Also at the event, USAID Deputy Administrator Glick donated PLEXOS software and associated hardware to MOIT. These tools will allow MOIT to simulate electrical utility operations over a multi-year period to set optimal generation and transmission targets.

Business leaders also expressed their desire to work with USAID and the Vietnamese government to generate increased private sector investment in the energy sector and assist the country to meet its energy security goals.