50 percent credit guarantee for energy efficiency projects in Vietnam

Summary

Vietnams energy consumption has been soaring in the past decade. The majority of its electricity is generated from burning coal, natural gas, and oil. Currently, the industrial sector of Vietnam constitutes up to 47 percent of national electricity consumption, becoming the dominant energy consumer. Vietnam Scaling Up Energy Efficiency Project (VSUEE) is led by the Department of Energy Efficiency and Sustainable Development, under the Ministry of Industry and Trade (MoIT)

The total grant, thus, amounts to US$86.3 million. The project sets its goals for the 2019-2025 period as follows:

Projected energy or fuel savings: 577 GW. Projected lifetime fuel savings: 398 GW. Projects developed: 100. Targeted number of bankable energy efficiency projects developed: 100. It can be concluded that the VSUEE is mainly about infrastructure finance, with a modest contribution to energy policies and reform.