Vietnam’s rural electrification program is assessed under Sustainable Energy for All Initiative

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    Experts engaged under the ongoing EU Technical Assistance Facility for the Sustainable Energy for All (SE4All) Initiative reviewed Vietnam’s Rural Electrification Program approved in 2013. EIR Global provided expertise in macroeconomics and public finance management with relevance for the assignment’s focus on rural electrification, renewable energy and energy efficiency.

    Energy is an essential/first necessity commodity for household welfare and country socio-economic development. Access to reliable and affordable modern energy services is also the key for essential public services, such as education, health and transport. However, many in developing countries do not have such access:  over 1.3 billion people (18% of global population) are without access to electricity and 2.6 billion people (38%) are without clean cooking facilities. The United Nation’s Sustainable Energy for All Initiative mobilizes international support to address this challenge. EU’s Technical Assistance Facility for SE4A  (EU TAF) provides ad-hoc support to advance this work.

    Vietnam has been one of the new Asian Tiger economies over the past 20 years with an annual average growth of over 6.8% from 1990 to 2013. Over the same period, the country’s real gross domestic product (GDP) per capita more than tripled—from US$301 in 1990 to US$1,029 in 2013 (in 2005 US$). With this remarkable economic growth comes the need to improve system efficiency in the power sector and increase further electrification rates, particularly in rural areas, through appropriate programmes with local impact and focus on exploiting Vietnam’s renewable energy potential.  Vietnam’s government approved in 2013 a program on electricity supply to rural, mountainous and island area covering period 2013-2020. The program seeks to increase electrification rates beyond 97% of its population.

    The EU TAF experts reviewed Vietnam’s Rural Electrification Program against its contribution to the goals of the SE4A as well as its consistency, relevance, credibility and financing modalities. Their recommendations will feed into the planning of EU’s technical assistance planning in the energy sector in Vietnam as well as overall donor coordination in the country.

    More information on EU’s Technical Assistance facility for Sustainable Energy for All Initiative is available here.