France, through AFD, supports the reinforcement of EVN’s power grid in Southern Vietnam

France, through AFD, supports the reinforcement of EVN’s power grid in Southern Vietnam

Over the past 3 years, Vietnam has increased its renewable energy capacity by 20 GW, totaling nearly 25% of its energy mix. Nevertheless, the country lacks the transmission infrastructure to integrate these renewable energies, in a context where the country is still facing the risk of electricity shortages.

Faced with these challenges, AFD granted EVN an 80 million euro non-sovereign loan in 2018 to strengthen the electricity distribution network managed by its subsidiary EVN Southern Power Corporation (EVNSPC) in the southern region of Vietnam. Work will be carried out on nearly 540 km of distribution lines and electrical substations (approximately 900 MVA). The project will contribute to the connection and transmission of electricity generated by renewable energy plants, thus relieving pressure on the existing grid. In addition, it will improve the quality of electricity supply for end users and reduce technical losses.

630 MW of renewable energy is expected to be connected to the distribution network, replacing part of the fossil generation and helping avoid 500 ktCO2eq per year. The estimated reduction in technical losses is 151 GWh per year. On this basis alone, the reduction of CO2 emissions is estimated at 68ktCO2eq per year.

Mr. Hervé Conan, Director of AFD Vietnam said: "With this project, AFD wishes to support EVN and Vietnam in the just and low carbon transition, but also in the implementation of the Paris Agreement and the Net Zero Emissions commitments by 2050 announced at high level during the COP26 . Today's signature will also pave the way for future collaboration between AFD and EVN, not only through non- sovereign financing but also at the level of EVN's subsidiaries dedicated to power transmission and distribution activities. AFD is committed to supporting EVN in upgrading the power grid and infrastructure to a more efficient, resilient and modern system."

Mr. Nguyen Xuan Nam, Vice President of EVN said, "On behalf of EVN, we thank AFD for its unwavering and continuous support to EVN over the past 20 years of cooperation. AFD is also a pioneer in providing non-sovereign financing to Vietnam. Our partnership with AFD is considered one of the most productive and successful, and it goes without saying that it is a testament to the quality of the relationship between a development agency and a state-owned enterprise. This project to strengthen EVN's power grid will enable better integration of renewable energy into the system and contribute to the implementation of Vietnam's Net Zero Emissions commitments in 2050."