The EU and France pledge to support Vietnam in its energy transition

The EU is committed to continuing to support Vietnam in the implementation of projects under the Just Energy Transition Partnership (JETP). This will enable Vietnam to achieve its energy transition objectives.

The European Union (EU) ambassador to Vietnam, Julien Guerrier, and the French ambassador to Vietnam, Olivier Brochet, have just completed a working visit to Gia Lai province (Central Highlands), to examine the Ialy hydropower plant extension project. This project is emblematic of Vietnam's energy transition.

Implemented between 2021 and 2024 by the Electricité du Vietnam (EVN) group, the project involved extending the Ialy hydropower plant with the commissioning of two 180 MW turbines, for an additional installed capacity of 360 MW. Commissioned in December 2024, these two turbines bring the total capacity of the plants to 1080 MW.

Financed under the "Team Europe" format, the project combines a 74.7 million euro loan from Agence française de développement (ADF) for the equipment, and an EU grant of 2 million euros, also provided by AFD.

The EU grant provided EVN with technical assistance in acquiring international best practices in health - safety - environment (HSE) risk management, while optimizing hydroelectric infrastructure operation and maintenance practices.

The extension of the plant, which is due for completion in 2025, will sustainably boost the country's renewable energy production, contributing to a greener, more resilient future.

A major contribution

This project is a major contribution to Vietnam's energy transition. With economic growth in the region of 7-8% per year, nationwide demand for electricity is expected to increase by 12-14% per year.

The revised Power Development Plan VIII (PDP8) adopted in April 2025 plans to increase installed capacity to 183 GW by 2030.

To achieve the goal of zero net emissions by 2050, Vietnam plans to generate nearly 70% of its electricity from renewable energies, including hydropower.

Launched in 2021, the Global Gateway strategy frames the EU's external action in an ever-changing international context, to deepen its commitment to quality infrastructure in low- and middle-income countries around the world and strengthen the global economy.

At the project site, EU Ambassador to Vietnam Julien Guerrier stressed the importance of the Ialy hydropower plant project for the energy transition: "This project will enable a reduction of 68,000 tons of_CO2 per year, while adding 360 MW of production to the power grid. The EU will continue to support the energy transition with its member states as part of the 'Global Gateway' strategy, and as co-chair of the JETP international partners group".

For his part, France's ambassador to Vietnam, Olivier Brochet, reaffirmed France's support for JETP: "With an estimated investment of 500 million euros to support the energy transition, France via AFD is supporting another emblematic project in #Team Europe format: the Bac Ai project, Vietnam's first pumped storage hydropower project, starting in 2025, which will add 1,200 MW of electricity production while optimizing the potential of intermittent renewable energies".

The success of the Ialy hydropower plant extension project proves the strength of the partnership between the EU, France and the EVN Group for a shared low-carbon future.

Team Europe approach: The EU and its member states work together within #Team Europe to ensure that their joint external action is more than the sum of its parts. Together, they are one of Vietnam's leading grant donors.

EU grants to Vietnam are used in line with the country's socio-economic policies and support the government's efforts to restructure the economy to ensure long-term growth and well-being for its citizens.

Source: lecourrier.vn/