Vietnam is a fast growing economy with significant growth in energy consumption and double digit growth rates for electricity consumption. At COP21 in Paris in 2015, Vietnam pledged an unconditional 8% reduction target in greenhouse gasses in 2030 and a conditional 25% reduction target depending on international support.

In 2013 Vietnam and Denmark entered into a long-term cooperation agreement for the purpose of strengthening Vietnam’s transition to a low-carbon economy. The Danish Energy Agency (DEA) cooperates with the Ministry of Industry and Trade (MOIT) in Vietnam through the joint Danish/Vietnamese Energy Partnership Programme (DEPP). Based on the achieved results during the previous programme (2013-2016), the following focus areas were identified for DEPP II (2017-2020):

  • scenario modeling of the energy sector
  • integrating renewable energy in the power grid
  • energy efficiency in the industrial sector.

To strengthen bilateral collaboration, a Danish senior advisor is posted long-term at MOIT in Vietnam.

The present three-year programme is funded with DKK 21.6 million from the Danish Climate Envelope.

The government of Vietnam has adopted an ambitious strategy for renewable energy deployment in the power sector. To assist the implementation of this strategy, Denmark has helped develop capacity in the field of power sector planning, using Danish tools and approaches to effectively integrate large amounts of renewable energy. In 2017 a power planning model was developed for Vietnam and MOIT and DEA have jointly published the first Vietnamese Energy Outlook Report 2017 (EOR). The EOR indicates that it is possible to operate the Vietnamese electricity system with very high levels of renewable energy without incurring curtailment of RE generation.

Long-range energy planning

The objective of the first component of DEPP II is to develop Vietnam’s energy system in a more sustainable way through implementation of cost-optimized policy and planning by assisting the Electricity and Renewable Energy Authority (EREA) under MOIT to commission, develop, and analyze comprehensive long-term energy scenarios.

The Energy Outlook Report 2017 provides valuable information, which policymakers can consult when deciding on the long-term development of the Vietnamese energy sector. This is supported by Vietnam’s first ever Technology Catalogue, which was presented in May 2019, and provides Vietnamese authorities with high quality data about new and future electricity producing technologies. A new, updated Energy Outlook Report will be published by autumn 2019.

Renewable energy integration in the power system

A well-managed and regulated power system is crucial for the development of a low-carbon energy system. The second component of DEPP focuses on supporting the Vietnamese Electricity Regulatory Authority ERAV’s implementation of the 2013 Prime Ministerial decision on a power market reform.

The objective of the second component is through training to support Vietnamese authorities in preparation of a new grid operation paradigm that efficiently integrates a larger share of variable RE, like wind and solar,  into the electricity grid as targeted for in the Vietnam RE Master Plan. This will also support the Electricity Regulatory Authority of Vietnam (ERAV) in its key objectives; furthering energy security, maintaining a reasonable price for electricity and protecting the environment. Based on experiences from these activities, the Danish Energy Agency is supporting ERAV in improving the regulatory framework for forecasting and ancillary services.

Low carbon development in the industrial sector

The industrial sector is one of the most energy consuming sectors in Vietnam. For that reason, it is essential to optimize its energy efficiency. Vietnam has a comprehensive policy on the promotion of energy efficiency (EE), particularly with regards to large energy intensive industries.

The focus of the third component program is to further strengthen policy on energy efficiency in industry in order to exploit the potential for improving energy efficiency in the industry even more. Focus is on making possible adjustments of the legal basis and the implementation of the Law on Energy Efficiency and Conservation (LEEC) on national and local levels.

The Danish Energy Agency engages on national and provincial level with the objective of introducing a set of tools to MOIT and the DOIT’s, which then will be able to monitor the development in the impact of the LEEC, and if necessary use the data to propose adjustments to legal framework, guidelines and administration of the law across Vietnam.

Technology catalogue

As part of the cooperation on power sector planning a Technology Catalogue is developed to ensure high quality, updated and aligned data input on electricity producing technologies for the power system optimization. The cooperation is based on many years of Danish experience of developing Technology Catalogues. On May 16th 2019 the first Vietnamese Technology Catalogue was launched at an event in Hanoi. The Technology Catalogue can be downloaded below:

Vietnam Technology Catalogue (in English)

Data sheet for Vietnam Technology Catalogue (in English)

Vietnam Technology Catalogue (in Vietnamese)

Data sheet for Vietnam Technology Catalogue (in Vietnamese)

Funding from the Danish Climate Envelope

The Danish Energy Partnership Programme II (2017-2020) is funded through the Danish Climate Envelope Programme. The Danish Energy Agency cooperates bilaterally with four growth economies; China, Vietnam, South Africa and Mexico, which experience increasing carbon emissions and have large mitigation potentials.

The four programmes focus on decoupling these countries’ carbon emissions from their economic growth by reforming energy sectors towards more renewable energy and increased energy efficiency.

The Danish-Vietnamese Cooperation