Viet Nam’s fast-growing economy is the main driver for the rapidly increasing electricity demand throughout the country over the past years. Viet Nam’s annual electricity production increased significantly, from 8.6 TWh in 1990 to 240.1 TWh in 2019. The annual increase in this period was between 12-15%, almost twice as high as the GDP growth rate. Viet Nam’s overall installed electricity generation capacity was 55 GW by mid-2019. Hydropower, coal and natural gas are still the dominant energy sources for power production.

According to the National Power Development Plan (PDP VII revised, March 2016), Viet Nam aims to increase its renewable energy share in power production substantially. The overall percentage figures for 2020 and 2030 include small hydro power.

However, the market for renewable energies in Viet Nam is still at a very early stage.

The main barriers to substantial private sector investments into both renewable energy and energy efficiency infrastructure include: i) low electricity price; ii) limited access to financing; iii) low capacities for commercial project development; iv) the lack of reliable data; v) the complex administration structure and legal framework.

The GIZ Energy Support Programme (ESP) is supporting the Vietnamese Government in developing renewable energy and energy efficiency markets by addressing the above barriers.

A number of projects have been implemented or are currently ongoing:
• Renewable Energy and Energy Efficiency (4E): 2015 - 2023
• Smart Grids for Renewable Energy and Energy Efficiency (SGREEE): 2017 - 2022
• Climate Protection through Sustainable Bioenergy Markets in Viet Nam (BEM):2019 - 2023
• Commercial and Industrial Rooftop Solar (CIRTS): 2021 - 2025
• Solar-Aquaculture Habitats as Resource- Efficient and Integrated Multilayer Production Systems (SHRIMPS): 2019 - 2023
• Clean, Affordable and Secure Energy for Southeast Asia (CASE): 2020 - 2024
• Project Development Programme (PDP): 2011 - 2023
• Support to the Up-scaling of Wind Power in Viet Nam (DKTI WIND): 2014 - 2018