Vietnam Low Emission Energy Program II (V-LEEP II)

Vietnam has emerged as one of the world’s fastest growing per capita greenhouse gas emitters and the energy sector serves as the largest source of these emissions. The U.S. Agency for International Development’s (USAID) Vietnam Low Emission Energy Program II (V-LEEP II) supports Vietnam’s transition to a clean, secure, and market-based energy sector. 

INCREASING DEPLOYMENT OF ADVANCED ENERGY SYSTEMS 

The project works with the Government of Vietnam (GVN) to mobilize private sector investment in the deployment of advanced energy systems, such as rooftop solar and electric vehicles. This includes supporting project design for clean energy developers and providing training and expertise to lenders for clean energy investment. 

IMPROVING ENERGY SECTOR PERFORMANCE 

The program works to improve Vietnam’s energy planning and operations practices to enhance energy sector performance. The project supports Vietnam’s efforts to advance its Eighth National Power Development Plan (PDP-8), as well as provides support for integrating more variable renewable energy sources into the national power grid system. 

INCREASING COMPETITION IN ENERGY SECTOR 

The project promotes transparency and competition in energy procurement through implementation monitoring, and evaluation of the Direct Power Purchase Agreement Pilot Program, initiated in 2017 with USAID support. This pilot paves the way for private buyers to eventually be able to purchase renewable power directly from private sellers, instead of having to go through the state-owned utility, Vietnam Electricity (EVN), as an intermediary for such transactions. The project also provides workforce and provincial government training to select energy investment projects during Vietnam’s implementation of PDP-8.

PROMOTING INNOVATION, INCUBATION, AND INCLUSION 

The project provides grants to help demonstrate and commercialize innovations and mobilize private investment in advanced energy systems. The project also supports energy-related businesses to improve their recruitment and retainment of women employees and leaders in their companies.

IMPACT

Building on the success of V-LEEP, which helped spur solar and wind investments in Vietnam totalling more than $300 million, the program will contribute to the design, financing, construction and operation of new clean energy sources. This includes deploying a total of 2,000 megawatts (MW) of renewable energy and 1,000 MW of natural gas-fired power generation.

TARGETED LOCALITIES

The project works at the national level on policy development and provides support to projects across the country.