Switzerland’s State Secretariat for Economic Affairs (SECO) has provided non-refundable assistance worth US$2.43 million for Vietnam Renewable Energy Development Programme (REDP).
The Ministry of Industry and Trade (MoIT) and SECO held a signing ceremony for the assistance in Hanoi on May 10.
Addressing the event, Deputy Minister of Industry and Trade Hoang Quoc Vuong expressed his hope that the programme will play an important role in developing clean energy, ensuring energy security and minimising the negative effects of climate change as well as boosting socio-economic development in Vietnam.
The programme’s objective is to increase the supply of electricity from renewable energy sources to the Vietnam national grid on a commercially sustainable basis in order to address rising demand and improve access in remote areas. It’s estimated that about 15-25 sub-projects will be financed under the REDP.
The REDP consists of three parts: building renewable energy projects, establishing a development policy framework, and developing future renewable energy projects.
The whole programme will cost US$318.3 million, including US$202.2 million from the International Development Association (IDA) under the World Bank (WB), US$2.43 million from SECO and the rest from corresponding domestic capital.
Also, at the signing ceremony, Victoria Kwakwa, the WB’s director in Vietnam, confirmed that the programme is important to Vietnam because it will add more sources of energy, protect the environment, promote socio-economic development, reduce exhaust fumes and deal with climate change.
According to the MoIT, there have been 7 small hydroelectric power projects with a total capacity of 94.2MW approved for borrowing US$55 million under the REDP framework. Ten other hydroelectric power projects with a capacity of 109MW have been registered with US$65 million in capital.
