EU Earmarks EUR346M to Help Vietnam Develop Renewable Energy

The European Union has earmarked EUR346 million to support Vietnam in developing the energy sector in a sustainable way, said Marcus Comaro, deputy general director of the Directorate General for Development and Cooperation of the European Commission. The funding is part of the EU’s new EUR400 million development co-operation program for Vietnam during the 2014-2020 period, Mr. Comaro said at a February press briefing in Hanoi. Though Vietnam has significant domestic energy resources and is an energy exporter, it will become a net energy importer as of 2015 and would import half of its energy resources as of 2030 due to the country’s rapid economic growth and industrialization. Energy is being used inefficiently and energy production and distribution are poorly managed in Vietnam. The EU support will contribute to a more sustainable energy sector by promoting clean and renewable energy sources, he noted. The financial support will also be focused on access to energy in rural areas. A significant share of the rural population has intermittent access to the national grid and still relies on biomass to meet its energy needs. About 800,000 households, mainly in mountainous areas and on islands are still living without electricity. The Vietnamese government has prioritized wind power development to deal with the electricity shortage. The country’s master plan for power development aims to increase the combined capacity of all wind power plants to about 1,000MW by 2020 and 6,200MW by 2030. (VIR Mar 2-8 p4)