USAID VIETNAM LOW EMISSION ENERGY PROGRAM (V-LEEP)

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USAID VIETNAM LOW

EMISSION ENERGY PROGRAM

(V-LEEP)

Quarterly Report for Year 4 Quarter 3 (April – June 2019)

July 15, 2019

This report is made possible by the support of the American people through the United States Agency for

International Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting

LLP and its implementing partners and do not necessarily reflect the views of USAID or the United States

Government.

USAID VIETNAM LOW

EMISSION ENERGY

PROGRAM (V-LEEP)

Quarterly Report for Year 4 Quarter 3 (April – June 2019)

Prepared for:

USAID/Vietnam, Environment and Social Development Office

Prepared by:

Contract No. AID-440-TO-15-00003

July 15, 2019

This report is made possible by the support of the American people through the United States

Agency for International Development (USAID). The contents of this report are the sole

responsibility of Deloitte Consulting LLP and its implementing partners and do not necessarily

reflect the views of USAID or the United States Government.

TABLE OF CONTENTS

Acronyms and Abbreviations .................................................................................................. i

Executive Summary ................................................................................................................. 1

Báo Cáo Tóm Tắt ..................................................................................................................... 3

V-LEEP Overview – Purpose and Approach .......................................................................... 5

Progress and Achievements – Significant events and Activities ......................................... 6

Component 1: Low Emission Strategy Development for the Energy Sector ............................. 6

Component 2: Enhance Capacity and Improve Enabling Environment for

RE Development ................................................................................................................... 10

Component 3: Increase Energy Efficiency Adoption and Compliance ................................... 16

Cross-Cutting Technical Activities: Gender ........................................................................... 19

Project Management ............................................................................................................. 20

Subcontracting and Key Personnel ....................................................................................... 20

Reports, Deliverables, and Communications ......................................................................... 20

Progress by Performance Indicators .....................................................................................20

Cooperation with Other USG and Donor Programs ..............................................................24

Clean Energy Investment Accelerator (CEIA) ........................................................................ 24

Hawaii Natural Energy Institute (HNEI) ................................................................................. 25

USAID Clean Power Asia Program ....................................................................................... 25

USAID Greening the Grid (GtG) Program.............................................................................. 25

USAID Resources to Advance Low Emission Development Strategies

Implementation (RALI) Program ............................................................................................ 25

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ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank

BCG Bamboo Capital Group

BESS Battery Energy Storage System

BIDV Bank for Investment and Development of Vietnam

CEC Central Economic Commission

CEIA Clean Energy Investment Accelerator

CfD Contract for Differences

DPPA Direct Power Purchase Agreement

EE Energy Efficiency

EESD Energy Efficiency and Sustainable Development

EPTC Electric Power Trading Company

ERAV Electricity Regulatory Authority of Vietnam

EREA Electricity and Renewable Energy Authority

ESCO Energy Service Company

EVN Electricity Vietnam

FDI Foreign direct investment

FY Fiscal Year

GGAP Green Growth Action Plan

GIZ Gesellschaft für Internationale Zusammenarbeit

GtG Greening the Grid

GVN Government of Vietnam

HNEI Hawaii Natural Energy Institute

IEVN Institute of Energy Vietnam

KWh Kilowatt hour

LoS Letter of Support

MOC Ministry of Construction

MOF Ministry of Finance

MOIT Ministry of Industry and Trade

MPI Ministry of Planning and Investment s

MW Megawatt

MWh Megawatt hour

NDC Nationally Determined Contribution

NPT National Power Transmission Company

NREDS National Renewable Energy Development Strategy

NREL National Renewable Energy Laboratory

PDP-8 Eighth Power Development Plan

PIC Project Investment Checklist

PM Prime Minister

PV Photovoltaic

Q Quarter

RDMA Regional Development Mission for Asia

RE Renewable Energy

REC Renewable Energy Certificate

RPS Renewable Energy Portfolio Standard

RTS Rooftop Solar

SHB Saigon - Hanoi Commercial Joint Stock Bank

SPC Southern Power Company

USAID United States Agency for International Development

V-LEEP Vietnam Low Emission Energy Program

VWEM Vietnam Wholesale Electricity Market

Y Year

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EXECUTIVE SUMMARY

Since its launch in 2015, the US Agency for International Development (USAID) Vietnam Low

Emission Energy Program (V-LEEP) has supported the full hierarchy of Vietnam’s enabling

environment to embed renewable energy (RE) and energy efficiency (EE) within national

strategies, commitments, policies, plans, and programs. Concurrently, V-LEEP has helped

private enterprises design, finance, and implement clean energy projects.

To help enshrine clean energy as a national priority, in the third quarter of its fourth year (Q3

Y4) V-LEEP continued a collaboration with the USAID Resources to Advance LEDS

Implementation (RALI) program to help the Ministry of Industry and Trade (MOIT) finalize its

Green Growth Action Plan (GGAP) and Nationally Determined Contributions (NDCs) for

greenhouse gas (GHG) reductions under the Paris Agreement of the United Nations Framework

Convention on Climate Change.

V-LEEP has continued to cement these national-level commitments within Ministerial-level

strategies, policies, and plans by helping MOIT formulate and refine:

A Renewable Energy Development Strategy (REDS) Action Plan that presents the full

suite of government policies and programs to advance RE. In Q3 Y4, V-LEEP continued

to help MOIT’s Electricity and Renewable Energy Authority (EREA) improve the draft

legislation documents for a Prime Minister (PM) Decision on the road map to implement

REDS.

The Eighth Power Development Plan (PDP-8) that will establish targets and approaches

for improvements in Vietnam’s electricity sector. In Q3 Y4, V-LEEP submitted the final

version of its recommendations to MOIT on how PDP-8 can adopt advanced planning

methods that allow proper consideration of techniques to smoothly integrate large

quantities of variable RE sources into the national power grid. In addition, V-LEEP

presented detailed recommendations for how it could continue to support PDP-8, with an

emphasis on helping MOIT adopt new modeling techniques.

A Direct Power Purchase Agreement (DPPA) mechanism that will attract private sector

finance to bring large quantities of large-scale RE to the national power grid; help meet

Vietnam’s clean energy commitments while reducing the fiscal strain on its budget; and

reinforce Vietnam as an attractive destination for foreign direct investment (FDI) by

ensuring that private enterprises are able to meet their global sustainability

commitments. In Q3 Y4, V-LEEP finalized its technical analyses of DPPA models and its

recommendations for a DPPA pilot program; and helped ERAV convene a Public

Consultation at which the Government of Vietnam (GVN) announced its determination to

authorize a DPPA pilot program by the end of 2019.

A Renewable Energy Portfolio Standards (RPS) mechanism that employs a well-tested

and flexible market mechanism which encourages RE deployment. After consulting with

MOIT and other stakeholders, V-LEEP developed a draft outline for an RPS

implementation road map for Vietnam. Due to other priorities of MOIT, V-LEEP

suspended work on RPS during Q3 Y4.

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Revisions to the Solar Feed-in-Tariff (FIT) that untangle implementation barriers that

impeded solar rooftop systems and encourage developers to incorporate battery energy

storage systems (BESS) in solar FIT projects. During Q3 Y4, V-LEEP presented its final

technical reports on RTS and on BESS, which EREA approved, thus completing these

two technical activities. During Q3 Y4, V-LEEP continued related work with MOIT to

design and launch a comprehensive, multi-party approach to promote RTS in Vietnam.

Minimum Energy Performance Standards (MEPS) that establish energy intensity targets,

and enforcement and compliance mechanisms that help ensure their uptake and

effectiveness in Vietnam’s industrial enterprises. V-LEEP helps MOIT’s Energy

Efficiency and Sustainable Development (EESD) department conduct energy

benchmarking studies and develop MEPS for the sugar sector, cement sector, and

textile sector. V-LEEP also helps enterprises within the iron and steel sector comply the

MEPS requirements. During Q3 Y4, V-LEEP completed data collection and

benchmarking analyses for the cement sector, conducted data collection for the textile

sector, and continued to help a MOIT working group review a draft MEPS circular for the

sugar sector. V-LEEP also developed the detailed plan to help two selected provinces

implement a MEPS circular for the iron and steel sector.

As V-LEEP helped Vietnam refine its strategies, policies and regulations to encourage clean

energy, it concurrently worked with private enterprises to help them leverage these reforms.

Through the end of Q3 Y4, V-LEEP’s Component 2 team has helped to mobilize approximately

$268 million of investments that will bring 272 megawatts (MW) of large-scale grid-connected

RE into operation.

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BÁO CÁO TÓM TẮT

Kể từ khi ra mắt năm 2015, Chương trình Năng lượng phát thải thấp Việt Nam (V-LEEP) của Cơ

quan Phát triển Quốc tế Hoa Kỳ (V-LEEP) đã hỗ trợ các cơ quan của Việt Nam trong xây dựng

môi trường thúc đẩy việc lồng ghép NLTT và sử dụng năng lượng hiệu quả trong các chiến lược,

cam kết, chính sách, kế hoạch và chương trình quốc gia. Đồng thời, V-LEEP cũng hỗ trợ các

doanh nghiệp thiết kế, huy động tài chính và thực hiện các dự án năng lượng sạch.

Nhằm đảm bảo năng lượng sạch là ưu tiên quốc gia, trong quý thứ ba của năm thứ tư (quý 3

N4), V-LEEP tiếp tục hợp tác với dự án “Nguồn lực thúc đẩy triển khai chiến lược phát triển phát

thải thấp” (RALI), hỗ trợ Bộ Công thương (MOIT) hoàn thiện Kế hoạch hành động tăng trưởng

xanh (GGAP) và Đóng góp do quốc gia tự quyết định (NDCs) để giảm phát thải khí nhà kính

(KNK) theo Thỏa thuận Paris của Công ước khung của Liên Hợp Quốc về Biến đổi khí hậu.

V-LEEP tiếp tục củng cố các cam kết cấp quốc gia này trong các chiến lược, chính sách và kế

hoạch cấp Bộ thông qua việc hỗ trợ Bộ Công Thương xây dựng và hoàn thiện:

Kế hoạch hành động của Chiến lược Phát triển năng lượng tái tạo (REDS) tổng hợp các

chính sách và chương trình của chính phủ để thúc đẩy NLTT. Trong quý 3 năm thứ 4, V-

LEEP tiếp tục phối hợp với Cục Điện lực và Năng lượng tái tạo (EREA) của Bộ Công

Thương nhằm hoàn thiện dự thảo Quyết định của Thủ tướng về lộ trình thực hiện REDS.

Quy hoạch Phát triển điện lực 8 (QHĐ8) quy định các mục tiêu và phương pháp tiếp cận

để phát triển ngành điện Việt Nam. Trong quý 3 năm thứ 4, V-LEEP đã nộp báo cáo đề

xuất hoàn tất cho Bộ Công Thương về áp dụng các phương pháp quy hoạch tiên tiến

trong QHĐ8 để tích hợp một tỷ trọng lớn nguồn điện tái tạo có tính biến động vào lưới

điện quốc gia. Ngoài ra, V-LEEP đã trình bày đề xuất chi tiết cho nhiệm vụ hỗ trợ QHĐ8,

với trọng tâm nhằm hỗ trợ Bộ Công Thương áp dụng các kỹ thuật lập mô hình mới.

Cơ chế Thỏa thuận Mua bán điện trực tiếp (DPPA) sẽ thu hút tài chính của khu vực tư

nhân để tích hợp số lượng lớn các dự án điện tái tạo quy mô lớn vào lưới điện quốc gia;

đáp ứng các cam kết về năng lượng sạch của Việt Nam đồng thời giảm gánh nặng tài

chính cho ngân sách; đưa Việt Nam trở thành điểm đến hấp dẫn cho đầu tư trực tiếp

nước ngoài (FDI) thông qua việc đảm bảo rằng các doanh nghiệp kinh doanh có thể đáp

ứng các cam kết bền vững toàn cầu của mình. Trong quý 3 năm thứ 4, V-LEEP đã hoàn

thành báo cáo phân tích kỹ thuật về các mô hình DPPA và đề xuất cho chương trình thí

điểm DPPA; hỗ trợ ERAV tổ chức hội thảo Tham vấn cộng đồng. Tại hội thảo, Chính phủ

Việt Nam đã thể hiện quyết tâm triển khai chương trình thí điểm DPPA vào cuối năm 2019.

Cơ chế Tiêu chuẩn danh mục đầu tư năng lượng tái tạo (RPS) áp dụng cơ chế thị trường

linh hoạt đã được kiểm định để thúc đẩy lĩnh vực năng lượng tái tạo. Do Bộ Công Thương

có các ưu tiên khác nên V-LEEP đã dừng thực hiện hoạt động RPS quý 3, năm thứ 4.

Sửa đổi cơ chế FIT nhằm loại bỏ các rào cản đối với hệ thống điện mặt trời trên mái nhà,

đồng thời khuyến khích các nhà phát triển kết hợp áp dụng hệ thống lưu trữ năng lượng

bằng pin (BESS) trong các dự án FIT điện mặt trời. Trong quý 3, năm thứ 4, V-LEEP đã

trình bày báo cáo kỹ thuật về điện mặt trời trên mái nhà và báo cáo kỹ thuật về BESS, đã

được EREA phê duyệt. Do đó, hai hoạt động kỹ thuật này đã hoàn thành. Trong quý 3,

năm thứ 4, V-LEEP tiếp tục phối hợp với Bộ Công Thương, thiết kế và giới thiệu phương

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pháp tiếp cận toàn diện, với sự tham gia của nhiều bên, để thúc đẩy lĩnh vực điện mặt

trời trên mái nhà tại Việt Nam.

Tiêu chuẩn hiệu suất năng lượng tối thiểu (MEPS) quy định mục tiêu về cường độ năng

lượng, cơ chế thực thi và tuân thủ giúp đảm bảo áp dụng hiệu quả tại các doanh nghiệp

công nghiệp của Việt Nam. V-LEEP giúp Vụ Tiết kiệm năng lượng và Phát triển bền vững

(EESD) của Bộ Công Thương tiến hành nghiên cứu về xây dựng định mức năng lượng

và MEPS cho ngành đường, xi măng và dệt may. V-LEEP cũng hỗ trợ các doanh nghiệp

trong ngành thép tuân thủ yêu cầu MEPS. Cũng trong giai đoạn này, V-LEEP đã hoàn

thành việc thu thập dữ liệu và phân tích định mức (benchmarking) cho ngành xi măng,

thu thập dữ liệu cho ngành dệt may và tiếp tục hỗ trợ tổ công tác của Bộ Công Thương

xem xét dự thảo thông tư MEPS cho ngành đường. V-LEEP cũng đã xây dựng kế hoạch

chi tiết để giúp hai tỉnh được lựa chọn thực hiện thông tư MEPS cho ngành thép.

Như vậy, V-LEEP đã hỗ trợ Việt Nam hoàn thiện các chiến lược, chính sách và quy định

khuyến khích năng lượng sạch, đồng thời cộng tác với các doanh nghiệp kinh doanh, giúp họ

nắm bắt cơ hội từ những cải cách này. Đến hết quý 3, năm thứ 4, Hợp phần 2 của V-LEEP đã

giúp huy động khoảng 268 triệu USD đầu tư và đưa 272 megawatt (MW) điện tái tạo nối lưới

quy mô lớn vào hoạt động.

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V-LEEP OVERVIEW – PURPOSE AND APPROACH

V-LEEP helps the Government of Vietnam (GVN) establish an effective policy, regulatory, and

incentive environment for low-emission growth in the energy sector, while simultaneously

attracting public-sector and private-sector investment in RE development and EE. V-LEEP

promotes the development of critical building blocks to scale up clean energy, such as

accessible smart incentives for clean energy and EE investments, enabling a competitive

environment for RE generation, and enhancing renewable power grid integration.

Three components form the core tasks under V-LEEP’s Year 4 Work Plan:

Component 1: Low Emission Strategy Development for the Energy Sector

Task 1.1: Enhance GVN capacity to analyze and develop clean energy strategies and

evaluate emission mitigation options for decision-making.

Component 2: Enhance Capacity and Improve Enabling Environment for Renewable Energy

Development

Task 2.1: Enhance capacity of Vietnamese government institutions to improve the

enabling environment for RE development.

Task 2.2: Enhance capacity of RE developers and the private sector in large-scale RE

development.

Component 3: Increase Energy Efficiency Adoption and Compliance

Task 3.1: Enhance government capacity to strengthen energy efficiency policy

implementation.

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PROGRESS AND ACHIEVEMENTS – SIGNIFICANT EVENTS AND ACTIVITIES

Component 1: Low Emission Strategy Development for the Energy Sector

V-LEEP’s Year 4 Work Plan includes four activities for Component 1:

Activity 1.1.1: Strengthen National Power Planning Capacity

Activity 1.1.2: Develop Road Map for Implementing Renewable Energy Portfolio

Standards (RPS)

Activity 1.1.3: Improve the Action Plan to Implement the National RE Development

Strategy

Activity 1.1.4: Design Communication Strategy and Campaign to Promote Clean Energy

Progress under each of these activities during Q3 Y4 is detailed below. Each narrative also

provides a forecast for each activity in Q4 Y4.


PDP-8 will be the cornerstone Ministerial-level plan that shapes the future of Vietnam’s power

sector. Vietnam has committed under the Paris Agreement to reduce its GHG emissions, and

contributions from its energy sector are essential to meeting its NDCs. As directed by the PM,

Vietnam is revisiting plans to build new coal-fired power plants, and MOIT anticipates excluding

plants with a high risk of environmental impact from PDP-8, which will set the power sector’s

priorities for generation, transmission, and distribution. With the costs of RE gradually

decreasing, EREA anticipates targeting a higher contribution of RE into the national power mix;

however, its successful integration requires overcoming many technical barriers. V-LEEP will

advise EREA on how to adopt new approaches for PDP-8 that consider how variable RE can be

prioritized in dispatching and transmission planning.

Support for PDP-8 is MOIT’s highest priority for V-LEEP, whose role will be complementary to

the work of the implementing contractor – likely to be the Institute of Energy Vietnam (IEVN) –

that MOIT will engage to prepare PDP-8. V-LEEP’s initial activity plan for PDP-8 support, which

MOIT approved, assumed that IEVN would initiate its technical work during V-LEEP’s Year 3.

However, as of the beginning of Q3 Y4, MOIT had not yet initiated the selection of its PDP-8

implementing contractor. EREA advised that as a Decree guiding the implementation of the Law

on Planning (in effect from January 1, 2019) was just issued in May 2019, it will take some

months to adapt the power planning process to meet with the new regulations, which must be

done before the PDP contract is executed.

V-LEEP has successfully assembled a world-class team of power planning experts that includes

the National Renewable Energy Laboratory (NREL), funded through external resources of the

USAID Greening the Grid (GtG) program; the Hawaii Natural Energy Institute (HNEI), funded

through external resources of the US Department of the Navy; and a V-LEEP cadre of local and

international experts.

As specified in its Work Plan, V-LEEP has helped EREA develop a methodology and

implementation roadmap for adapting international best-in-class methodologies for power sector

planning for high levels of variable RE for Vietnam’s PDP. During Q3 Y4, V-LEEP:

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Finalized its 130+ page technical report,

“Assessment and Recommendations on

Methodology for Power Development Plan

(PDP)” and informally received EREA’s

acceptance on May 30, 2019. The report

was formally submitted to EREA for

approval (via a Non-Objection Letter,

“NOL”) in June 2019.

Prepared its detailed plan (activities,

outputs, resources and timing) for

continued support on PDP-8, including the

contributions of the extended team (i.e.,

NREL and HNEI).

Engaged a new international resident

power sector advisor to supplement the

existing team.

Facilitated knowledge-sharing activities on

power planning, with an emphasis on grid

integration of variable renewable energy,

during visits of the NREL and HNEI teams

to Hanoi, and at the 2019 Asia Clean

Energy Forum in Manila.

In Q4 Y4, V-LEEP expects to:

Deploy its new long-term expatriate advisor to support PDP-8.

Procure the PLEXOS® Simulation Software system, together with the associated

hardware needed to operate it, and commission it at the EREA offices.

Initiate basic and advanced training on PLEXOS® for MOIT and IEVN.

Facilitate EREA’s establishment of a Modelling Working Group for PDP-8.

Initiate various PDP analytical exercises.

Activity 1.1.2: Develop Road Map for Implementing Renewable Energy Portfolio

Standards (RPS)

To promote RE development, GVN is considering a new mechanism – RPS – that combines

mandates and market flexibility to attract RE to the grid. RPS policies vary internationally, but all

are grounded in common elements. These include a target (in either MW of MWh), a target

year, a list of eligible RE technologies, consideration of RE imports, and a compliance and

enforcement structure. To help EREA design an RPS mechanism that is suitable for Vietnam,

V-LEEP formed an expert team that includes NREL (funded through external resources of

USAID and other organizations), the US Department of State, HNEI (funded through external

resources of the US Department of the Navy), and a V-LEEP cadre of local experts.

Figure 1: V-LEEP’s Recommendations

to EREA for Future Support on PDP-

88ort

Figure 1: V-LEEP’s recommendations

to EREA for future PDP support

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Prior to Q3 Y4, V-LEEP had facilitated a one-week consultative mission of the NREL and HNEI

team and had presented EREA with an international review of leading practices for RPS and

suggestions on how to adapt and implement them in Vietnam and had developed a draft outline

for an RPS implementation road map.

The senior leadership of EREA has continued to advise V-LEEP that its attention to RPS

remains limited due to other priorities (e.g., a new Feed-in-Tariff “FIT” for solar photovoltaic “PV”

projects). Consistent with this advice, and with the concurrence of USAID, V-LEEP suspended

its work on RPS. V-LEEP does not anticipate work on this activity during the next quarter.

Activity 1.1.3: Improve the Action Plan to Implement the National Renewable Energy

Development Strategy (NREDS)

GVN approved its NREDS – a foundational strategy document – in late 2015. This Ministerial-

level plan sets ambitious targets for the percentage and volume of RE sources in Vietnam’s

power mix through 2050. In 2016, a joint USAID and United Nations Development Programme

(UNDP) project – Strengthening Capacity and Institutional Reform for Green Growth and

Sustainable Development in Vietnam (aka the CIGG project) – led by the Ministry of Planning

and Investment (MPI), drafted an Action Plan to implement REDS. MOIT requested that V-

LEEP help refine and revise this Action Plan, particularly by addressing key questions on grid-

integration and investment-enabling issues. To support improvements to the Action Plan, V-

LEEP assembled an expert team comprised of V-LEEP’s local experts, NREL and its Clean

Energy Solutions Center, and the USAID Resources to Advance Low Emission Development

Strategies Implementation (RALI) program.

In Q3 Y4, V-LEEP continued to support EREA to improve the draft legislation documents for a

PM Decision on the road map to implement REDS:

Given the uncertainty in MOIT’s progress of securing PM Decision, V-LEEP anticipates that its

role in Q4 Y4 will be limited; potentially helping EREA revise the key REDS documents following

feedback from other line ministries.


Responding to a request of EREA’s senior leadership and guidance from USAID, V-LEEP

initiated a new activity in Y4: the design of a communications strategy and campaign for MOIT

that will raise awareness on considerations, policies, plans, and solutions for clean energy in

Vietnam. The audience for this campaign will include the public, civil society organizations, the

media, local communities, development partners, and provincial authorities; and would

complement the advisory and policy-making work of Ministries and the Government. V-LEEP

will also help identify potential sources of support for its implementation, such as technical and

financial resources from the public diplomacy team of the US Embassy in Vietnam.

In Q3 Y4, V-LEEP delivered its report “Communications Strategy for Electricity and Renewable

Energy Authority of Vietnam (EREA)” and received EREA’s NOL for the strategy on July 9,

2019.

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Table 1: Component 1 Activities, Work Products, and Deliverables

Component 1, Year 4

Activities, Work Products, and Deliverables Completion Date Specified in Work Plan, Status, and Notes


Develop a methodology and implementation roadmap for adapting international best-in-class methodologies for power sector planning for high levels of variable RE for Vietnam’s PDP

Q3. Completed.

Institutionalize a Modeling Working Group (MWG) and a Technical Advisory Group (TAG)

Q3. Completed. A recommendation on MWG was included in the PDP Support Inception Note.

Mobilize an on-site PDP Advisor to support EREA during PDP-8 development

Q3. Completed, A recommendation on PDP Advisor was included in the PDP Support Inception Note.

Review power demand forecast, economic-technical parameters and natural gas price forecast

Q3. Eliminated. EREA did not wish to proceed.

Review solar and wind energy potential estimates for PDP-8, using the RE Data Explorer to validate


Review solar and wind cost, performance, and capacity value assumptions for PDP capacity expansion scenarios


Develop datasets to support robust analysis of high variable RE scenarios Q3: Completed. A recommendation on datasets was included in the PDP Support Inception Note.

Recommend institutional mechanisms for solar and wind integration into Vietnam’s electricity grid


Develop and validate a reference case production cost model of the Vietnamese electricity system, using EVN-NLDC’s existing model for a previous year as a baseline

Q3. Completed. A recommendation on PCM was included in the PDP Support Inception Note, using PLEXOS as modelling tool.

Incorporate the core PDP-8 capacity expansion scenario(s) for a medium-term target year (e.g., 2030) in the production cost model

Q3. Deferred. Will be considered in Y5 when EREA engages IEVN.

Develop and model additional high variable RE scenarios, using the validated model EVN-NLDC model

Q3. Completed. A recommendation on High RE scenarios was included in the PDP Support Inception Note, under PCM work.

Activity 1.1.2: Develop Road Map for Implementing Renewable Energy Portfolio Standards (RPS)

Administration and monitoring structure of RPS in Vietnam (e.g., planning and reporting strategy, accounting, enforcement, flexibility mechanism, and cost recovery)

Q2: Completed. V-LEEP will prepare a revision if EREA submits additional comments

Implementation roadmap and additional policies for the implementation of the designed RPS

Q3. Deferred. EREA advised it has other competing priorities.

Consultation workshop (January 2019) Q3. Deferred. EREA advised it has other competing priorities.

Minutes of the consultation workshop Q3. Deferred. EREA advised it has other competing priorities.

Synthesized report Q3. Deferred. EREA advised it has other competing priorities.

Peer review and knowledge exchange on RPS/REC Q3. Deferred. EREA advised it has other competing priorities.

10

Component 1, Year 4

Activities, Work Products, and Deliverables Completion Date Specified in Work Plan, Status, and Notes

Concept on assessment of required legal, institutional and market assessment for the development and implementation of the proposed support mechanism (e.g., RECs)


Presentations on RPS design, implementation roadmap and RECs Q3. Completed. NREL/HNEI experts presented to key stakeholders (EREA, ERAV, EVN, GENCO3, SPC) in March 2019.

Final report on RPS and its implementation roadmap including structure and required policies to enable support mechanism such as REC


Support drafting legal document (tentatively a Decision by PM) on RPS Q3. Deferred. EREA advised it has other competing priorities.

Activity 1.1.3: Improve the Action Plan to Implement the National RE Development Strategy

Consultation workshop on REDS Action Plan Q3. Completed. Consultation meeting with Vice Minister Hoang Quoc Vuong held on January 23, 2019.

Minutes of consultation workshop Q3. Completed. MOIT issued Notice 25/TB-BCT February 12 guiding the next steps to follow.

Technical support to EREA to address issues raised in consultation Q3. Completed. V-LEEP deployed a team of two local experts to provide support to EREA.

Improve and finalize the Action plan for REDS based on comments and opinion of workshop participants

Q3. Deferred. EREA requested postponement.

Develop brief communications piece that highlights USAID’s contribution to the revised Action Plan

Q3. Deferred. EREA requested postponement

Support EREA in drafting the relevant policies (e.g., Decree or Decision) to be approved by the PM on the National Action plan for REDS in Vietnam, as required

Q3. Ongoing. V-LEEP deployed a local Legislation Advisor to help EREA draft relevant documents and is waiting for EREA’s additional requests.


Convene stakeholder sessions with EREA leadership to define objectives and refine approach

Q1. Completed

Deliver annotated outline of report that presents communications strategy and campaign, and revise based on EREA’s suggestions

Q1. Completed

Map the availability of external resources to assist with implementation, through desk research and meetings

Q1. Completed

Deliver draft report that presents recommended communications strategy and campaign and identifies potential sponsors for implementation

Q3. Completed. V-LEEP received a NOL from EREA.

Component 2: Enhance Capacity and Improve Enabling Environment for RE

Development

In Year 4, activities under Component 2 are serving to further accelerate the deployment of RE

in Vietnam by working concurrently with GVN, private RE developers, and RE consumers. V-

LEEP is drawing on its previous work, which provided a detailed analysis of the state of the RE

industry in Vietnam, key influences and trends, and active stakeholders. The Y4 Work Plan

includes five activities for Component 2:

11

Activity 2.1.1: Support the Design and Piloting of Direct Power Purchase Agreements

(DPPA) for Vietnam

Activity 2.1.2: Propose a Revised Support Mechanism for Promoting Solar Rooftops

Activity 2.1.3: Prepare Study on Policy Options for Energy Storage

Activity 2.2.1: Provide Customized One-On-One Support to RE Project Developers

Activity 2.2.2: Provide Secondary and Leveraged Support for RE Project Developers

Progress under each of these activities during Q1 Y4 is detailed below.

Activity 2.1.1: Support the Design and Piloting of Direct Power Purchase Agreements

(DPPAs)

V-LEEP continued a high-profile collaboration with the Electricity and Regulatory Authority of

Vietnam (ERAV) to fulfill a request from the PM’s office to implement a mechanism allowing

business enterprises to meet their global sustainability commitments. DPPAs, often known as

corporate power purchase agreements, are contracts under which corporations acquire

electricity directly from power generators. Globally, DPPAs have become popular, particularly

for large corporations, with a cumulative 19.6 gigawatts of projects contracted through 2017

worldwide. The main benefits for consumers include power price stability through long-term

agreements and access to RE for carbon disclosure and RE reporting metrics. Investors are

attracted to DPPAs because counterparties to the contract are often creditworthy entities that

allow for favorable financing terms and easier access to equity markets. Finally, governments

benefit through additional RE capacity funded by private equity, which also lowers fiscal strain

by implementing RE projects that do not require payments through a FIT mechanism.

Enabling DPPA is USAID’s highest priority for V-LEEP and is consistent with the broader USG

strategy for activities in Vietnam, as driven by the US Embassy and the US Commercial

Service.

V-LEEP’s support for DPPA has followed three fundamental building blocks:

1. A legal and institutional review that determines the permissibility of DPPA in Vietnam,

and identifies potential changes in law, regulation, and practice that will enable and

encourage its use. V-LEEP completed this review during Year 2.

2. A review and recommendation of models to assess how other jurisdictions have allowed

DPPAs and key design features that enable corporate procurement of RE. This exercise

will map the transactional structure and financial flows of such examples and

recommend applicable best practices and design features for Vietnam.

3. A roadmap for implementation and DPPA pilot to test and refine models and to identify

requirements that enable and promote their wider adoption.

To highlight the commitment of large buyers and sellers to DPPA – particularly of those whose

foreign direct investment (FDI) underpins Vietnam’s continued economic growth – V-LEEP has

regularly updated and disseminated a Declaration of Support. By the end of Q3 Y4, 26

companies and organizations doing business in Vietnam had signed the Declaration. Together

with their supply chain partners, these businesses purchase more than 16 million megawatt-

12

hours of electricity annually, an amount comparable to the consumption of 28.4 million

Vietnamese households. These businesses are also strategic business partners with Vietnam

with a total investment of 1.57 billion US dollars, thus directly and indirectly supporting the

employment of more than 710,000 people. This strong and influential voice of FDI has helped

DPPA retain a high-level of commitment within GVN.

During Q3 Y4, V-LEEP intensively worked with ERAV on DPPA. Among its key

accomplishments, V-LEEP:

Convened a formal DPPA Public Consultation on June 12, 2019. About 120 participants

from government agencies, the private sector, international donors and development

partners joined this workshop to learn about DPPAs in Vietnam. During the event, GVN

announced that it would launch a DPPA pilot program by the end of 2019.

Finalized and received ERAV’s formal acceptance of V-LEEP’s full stream of technical

analyses that underpin the selection of the DPPA model and design of a DPPA pilot

program in Vietnam. This included a report on DPPA model selection (aka Report 2.2)

and on a recommended design of a DPPA pilot program (aka Report 2.3).

Continued to meet with representatives of leading foreign direct investors in Vietnam

who are potential buyers under a DPPA transaction, and with RE project developers

and investors who are potential sellers, to prepare “business cases” that outline

potential deal structures for DPPA pilots and help identify design constraints and

requirements.

Drafted and discussed with ERAV a detailed action plan for design and launch of a

DPPA pilot program by the end of 2019.

During Q4 Y4, V-LEEP anticipates that its work on DPPA will include:

Finalize and secure ERAV approval for the detailed DPPA Pilot Program action plan.

Initiate and continue technical support on the seven defined workstreams:

o Workstream 1: Finalize Contract for Differences (Cfd) Standard/ Template

Contract

o Workstream 2: Finalize calculation and obtain legal approval for the DPPA

Charge

o Workstream 3: Analyze locational and power development planning issues for

DPPA projects

o Workstream 4: Prepare and Approve Legal Framework for DPPA Pilot program

o Workstream 5: Prepare DPPA Pilot Program Transaction Agreements

o Workstream 6: Develop, Disseminate, and Implement DPPA Pilot Application

Process

o Workstream 7: Capacity Building and Operational Requirements

13


On February 22, 2019, MOIT issued the second draft of a Decision that presents a revision to

2017’s Decision 11/2017/QD-TTg on Vietnam’s Feed-in-Tariff (FIT) program for solar power.

The draft decision changes several of the framework conditions that affect how solar rooftop

(RTS) projects can operate and receive payments for excess electricity beyond immediate

In Q3 Y4, V-LEEP completed this technical analysis, finalizing and submitting to EREA its full

report on RTS. V-LEEP received EREA’s NOL for this report on July 9, 2019.

During the implementation of this technical assignment, EREA requested that V-LEEP take the

lead to help EREA design, launch and manage a promotion program for RTS development, in

close collaboration with the GIZ Energy Support Program and World Bank. EREA turned to V-

LEEP for detailed recommendations that it could incorporate within a final Decision.

To meet this need, V-LEEP partnered with USAID Clean Power Asia, NREL, and CEIA to

leverage their expertise and resources; referencing prior work in Vietnam by other organizations

such as the World Bank and GIZ; and collaborating with key stakeholders – EREA, ERAV, EVN

and its subsidiaries, the Ministry of Finance, the General Tax Department, and RE developers –

to capture their perspectives, secure data, and contribute to quality assurance and broad

acceptance of the findings. The stream of work included desk research, field trips, stakeholder

interviews for data collection, report development, and a consultation workshop for study

presentation and validation.

14

The objectives of the RTS Promotion Program

are to:

Support improvement of market

conditions to facilitate new investment in

RTS systems.

Support an enabling environment for

public and private sector investment to

increase the number of RTS projects.

Based on V-LEEP’s proposed action plan, EREA

received formal approval for the RTS Promotion

Program under MOIT Decision no. 2023/QĐ-

BCT dated July 5, 2019.

Activity 2.1.3: Prepare Study on Policy

Options for Energy Storage

EREA asked V-LEEP to assess policy options

that encourage deployment of energy storage

solutions, for possible inclusion within the

revision to Decision 11 that established the solar

FIT program.

V-LEEP collaborated with NREL and Clean

Power Asia for this assignment. The stream of

work included desk research, data collection,

report development, and a consultation

workshop for study presentation and validation.

The final report included a technical and financial

analysis of BESS application in solar PV systems in Vietnam, specifically in the provinces of

Ninh Thuan and Binh Thuan. In Q3 Y4, V-LEEP finalized its full technical report and submitted it

to EREA. V-LEEP received EREA’s NOL on July 9, 2019.

Activity 2.2.1: Provide Customized One-On-One Support to RE Project Developers

By the end of Q3 Y4, V-LEEP had surpassed the core indicators that measure the effectiveness

of its one-on-one support to RE project developers:

V-LEEP has already helped mobilize $268.59 million in funding for clean energy

projects. This surpasses the target for the entire duration of the V-LEEP program, which

is $250 million.

V-LEEP has helped 271.4 MW of RE projects achieve financial closure. This far

surpasses the target for the entire duration of the V-LEEP program, which is 200 MW.

To date, V-LEEP has helped 13 RE projects that are investing in generating electrical power

using solar PV, wind turbines, and waste-to-energy (WTE). In addition, V-LEEP is continuing to

support two local commercial banks by identifying international leading practices relating to debt

Figure 2. First page of MOIT decision

launching a RTS Promotion Program

15

financing; risk review and assessment; and review strategy for their portfolios of PV projects.

Two banks – Vietin and BIDV – have also expressed interest in V-LEEP’s DPPA work.

For these projects, V-LEEP provided a customized mix of technical assistance aimed at helping

developers improve the projects, secure financing, and implement projects consistent with

leading international practices. V-LEEP first conducted a Project Investment Checklist (PIC) that

reviews key elements of the proposed RE project (e.g., siting, technical design, and financial

analysis) as it progresses through the three stages of development (early, mid, and late-stage).

Based on the PIC findings, V-LEEP recommended specific improvements to enhance a

project’s potential for success. For example, V-LEEP conducted a site visit for T&T and drafted

a report that identified opportunities, risks and strategies for constructing the PV projects. V-

LEEP is also working with Ha Do, Bamboo, NEI and Pacifico to design an O&M plan for post-

COD operation. This will include a strategy for year one operation and adjustment for following

years including: review of qualifications of the service provider to ensure they are competent

and qualified by the equipment supplier; a regular schedule for inspection and cleaning of key

equipment; and assurance of a correct quantity of spare parts. V-LEEP will also review inverter

maintenance schedules; compare them to the schedules prepared by O&M service providers;

and review production data for the first year to confirm that the O&M schedules are appropriate

for maximum energy harvesting.

Activity 2.2.2: Provide Secondary and Leveraged Support for RE Project Developers

In Q3 Y4, V-LEEP co-chaired a webinar with CEIA to update the REBA Vietnam working group

on the program design and next steps for DPPA. This webinar attracted 78 key representatives

from global buyers, developers, investors and other stakeholders who are tracking DPPA

opportunities in Vietnam.

In May 2019, V-LEEP conducted a one-day training for 80 officials from various branches of

BIDV bank This program focused on capacity strenthening for credit appraisal and lending

decision for solar PV projects. V-LEEP worked closely with BIDV to create a workshop primer

on updated RE-related regulations, technical due diligence, issues on RE project management,

and evaluation of RE project’s bankability for lending decision. V-LEEP ensured that the event

met the goal of informing attendees on the basics of diligence for investment in solar PV

projects.

In May 2019, V-LEEP also collaborated with Neoventure to plan for a Master Class pre-event to

Vietnam Solar Expo in July 2019. The event will cover two subjects: “Rooftop Solar Commercial

and Industrial” and “O&M and Solar Asset Management”. V-LEEP worked closely with

Neoventure to draft the agenda, identify speakers, and ensure that the event will help audiences

gather market intelligence and participate in the sustainable development of the Vietnamese

solar market.

In Q4 Y4, V-LEEP plans to cooperate with CEIA to organize a one-day REBA event on DPPA

and the rooftop solar promotion program that V-LEEP is organizing for MOIT. V-LEEP is also

coordinating with EREA to hold a kick off workshop in late July 2019 for the rooftop solar

promotion program. This event will officially start the promotion program, sharing information on

activities, milestone dates, objectives, and goals.

16


Component 2, Year 4

Activities, Work Products, and Deliverables Completion Date Specified in Work Plan, Status and Notes

Activity 2.1.1: Support the Design and Piloting of Direct Power Purchase Agreement (DPPA)

Finalize Model Selection Report, Implementation Plan, Market Survey, Legal Review and support the drafting of a Decision to allow the DPPA Pilot to operate.

Q2. Completed. ERAV accepted V-LEEP’s Model Selection report, Implementation Plan, Market Assessment, Legal Review and Implementation Plan (aka Report

2.3)

Help ERAV and other elements of MOIT lead a collaborative public consultation to seek agreement on overall parameters and working arrangements for DPPA pilots

Q3. Completed. V-LEEP convened the DPPA Public Consultation Workshop in collaboration with ERAV.

Support drafting of decisions and circulars required to enable the pilots Q3-4. Ongoing.

Continue to recruit candidate buyers and sellers to pilot DPPA in Vietnam Q2. Ongoing. V-LEEP secured tentative commitments from more than 14 parties to DPPA pilot projects through a Business Case Study review.

Provide technical, financial, and transactional advice that supports implementation of the pilots through match-making activities

Q4


Review source materials, conduct stakeholder consultations, and collect data

Q1. Completed

Draft and revise report on international leading practices for solar rooftop program that assesses selected international and regional solar rooftop markets to identify success factors, presents positive and negative impacts of the support programs, and applies the lessons to circumstances in Vietnam.

Q3. Completed. EREA provided NOL for the full report.

Draft and revise report that assesses the solar rooftop sector in Vietnam (potential, applications, demand from buyer and sellers, and policy barriers)


Draft and revise report with institutional review and assessment for promoting solar rooftop projects


Suggest improvements in the support mechanism for solar rooftop projects in Vietnam


Convene consultation workshop and prepare final assessment report Q3. Ongoing. V-LEEP will organize a kick-off workshop on Rooftop Solar Promotion Program in HCMC in July 2019

Activity 2.1.3: Prepare Study on Policy Options for Energy Storage

Review source materials, stakeholder consultation, data collection Q1. Completed.

Draft and deliver initial report to EREA for comments Q3. Completed.

Draft and deliver final report to EREA Q3. Completed, V-LEEP received NOL from EREA.

Component 3: Increase Energy Efficiency Adoption and Compliance

17

V-LEEP’s activities under Component 3 help MOIT design and implement effective programs to

enhance industrial EE, increase the adoption of leading EE practices in Vietnam’s most energy-

intensive industries, and improve industrial compliance with EE mandates.

In Year 4, V-LEEP’s Work Plan includes five activities for Component 3. Under Task 3.1,

“Enhance government capacity to strengthen EE policy implementation”, V-LEEP works closely

with EESD to help it develop and implement innovative approaches that encourage industrial

EE. This includes:

Activity 3.1.1: Review MOIT’s NDCs and GGAP

Activity 3.1.2: Help Develop Minimum Energy Performance Standards (MEPS) for the

Cement Sector


Sugar Sector


Textile Sector

Activity 3.1.5: Recommend MEPS Compliance and Enforcement Strategy

Progress under each of these activities during Q3 Y4 is detailed below.

Activity 3.1.1 Review MOIT’s National Determined Contributions (NDCs) and Green

Growth Action Plan (GGAP)

During Q3 Y4, V-LEEP worked with EESD to review a proposed outline for a GGAP

development framework that V-LEEP (with contributions of the RALI program) had earlier

prepared. EESD generally agreed the proposed outline and provided comments that the RALI

team is incorporating into a next version.

As the RALI program will finish in September 2019, during Q4 Y4, V-LEEP will continue to work

closely with the RALI team to finalize the GGAP development framework and submit it to EESD.

Activity 3.1.2: Help Develop MEPS for the Cement Sector

In Q3 Y4, V-LEEP finalized and validated the database, conducted data analysis, and

benchmarking calculation. The draft benchmarking report was developed and reviewed.

During Q4 Y4, V-LEEP will continue to finalize the draft report following an internal review, and

then will submit an official draft report to EESD for review and comment. V-LEEP will help

convene a stakeholder meeting between MOIT and MOC to review V-LEEP results before a

public consultation workshop to socialize the benchmarking results and draft MEPS circular.

Activity 3.1.3: Help Develop MEPS for the Sugar Sector

In Q3 Y4, V-LEEP helped EESD engage key stakeholders to participate in a working group led

by the Director of EESD. The working group was established with Decision No. 1786/QD-TTg

issued by MOIT’s Vice Minister, Mr. Hoang Quoc Vuong.

During Q4 Y4, V-LEEP will continue to work with this working group to prepare MEPS circular

submission documents, explain the MEPS developments, and finalize the MEPS circular.

18

Activity 3.1.4: Help Develop MEPS for the Textile Sector

In Q3 Y4, V-LEEP finalized the benchmarking methodology based on the result of a

consultation workshop organized at the beginning of April 2019. This included developing

questionnaires, a list of companies to survey, a methodology, and a data collection approach.

EESD issued cover letter No 4128/BCT-TKNL to authorize and facilitate this data collection.

During Q4 Y4, V-LEEP will continue to follow up on the data collection. V-LEEP will also

conduct initial benchmarking analysis and consult with stakeholders on the results.


In Q3 Y4, V-LEEP reached agreement with EESD on the scope and approach to perform this

activity with focus on the iron and steel sector as regulated under Circular 20/2016/TT-BCT. The

activity will focus on development of: Verification – Inspection – Reporting procedure guidelines;

an EE handbook and calculation tool; and a concept note to develop an appropriate reporting

tool consistent with existing reporting tools for designated energy users (DEUs). V-LEEP will

use these materials in its pilot work in the next program year.

During Q4 Y4, V-LEEP will continue to work with two selected provinces: Bac Giang in the North

and Dong Nai in the South. V-LEEP will work closely with these two provinces to consult on

guideline approaches as well as to understand support needs for the development of enhanced

compliance and enforcement and procedures. V-LEEP also will work closely with the firm that

developed and maintains the existing DEU reporting tool to develop a concept note for a MEPS

compliance reporting tool.

19


Component 3, Year 4

Activities, Work Products, and Deliverables Completion Date Specified in Work Plan, Status and Notes

Activity 3.1.1: Review MOIT’s NDCs and GGAP

Propose GGAP development framework Q1-3. Ongoing, deferred to Q4 as suggested by EESD

Convene an international experience workshop for GGAP development for industry sector

Q1-2. Completed.

Propose a GGAP MRV system Q3. Eliminated. Per decision of EESD and USAID, this activity is removed.

Convene a consultation workshop Q3. Eliminated. Per decision of EESD and USAID, this activity is removed.

Activity 3.1.2: Help Develop MEPS for the Cement Sector

Collect and assess data Q1-2. Ongoing.

Benchmarking calculation Q3. Ongoing. V-LEEP submitted draft report to EESD

Draft circular Q4

Activity 3.1.3: Help Develop MEPS for the Sugar Sector

Validate benchmarking results and complete draft circular Q2. Completed. V-LEEP submitted final results and draft circular to EESD

Activity 3.1.4: Help Develop MEPS for the Textile Sector

Prepare a report that recommends a detailed benchmarking methodology and approach for the sector

Q2. Completed.

Conduct stakeholder consultations Q3. Completed.

Collect and assess data Q3. Ongoing. V-LEEP has distributed the questionnaires

Benchmarking calculation Q3. Deferred. EESD suggests Q4.

Help draft MEPS circular Q3. Deferred. EESD suggests Q4.

Validate benchmarking results and complete draft circular Q4


Agree with EESD on which industrial sector to feature in this activity Q3: Completed.

Outline of Verification-Inspection-Reporting (VIR) guideline Q3. Deferred. Moved to Q4

Final VIR guideline Q4

Draft energy efficiency handbook and calculation tool (MS excel tool) Q4

Final energy efficiency handbook and calculation tool (MS excel tool) Q4

Draft concept note for enhanced reporting tool Q4

Final concept note for enhanced reporting tool Q4

Cross-Cutting Technical Activities: Gender

V-LEEP in Year 4 is continuing to intensify its ongoing efforts to mainstream gender equity into

its programs, by proactively seeking wider participation in all activities such as balanced

representation in program events such as workshops and stakeholder consultations.

20

In Q3 Y4, V-LEEP assembled a team to launch activities for a gender-responsive approach to

large-scale RE project developments in Vietnam. The team is in a preliminary fact-finding phase

to gain a deeper understanding of the Vietnam context with regards to gender-responsive efforts

in RE projects.

Initial research has shown that a key impetus for project developers’ compliance with gender-

related activities in project development are the Environmental and Social Impact Assessments

(ESIAs) required by international financing institutions such as the International Finance

Corporation (IFC) and the Asian Development Bank (ADB). Environmental Impact Assessments

(EIA) or Environmental Protection Plans (EPP) administered by the Government of Vietnam are

limited in their gender-related requirements. Diverse existing tools – such as the ADB’s “Going

Beyond the Meter” Gender Toolkit, the World Bank ESMAP’s Gender and Energy Assessments,

and the Climate Investment Fund’s Gender and Renewable Energy Entry Points resource – can

provide guidance for project developers operating in Vietnam to meet gender-focused goals in

response to the ESIAs. Furthermore, stakeholder interviews with the USAID and IUCN team

that created the cornerstone “Advancing Gender in the Environment” report emphasize the need

for capacity building and awareness amongst local stakeholders, and the institutional backing

for gender-responsive approaches in RE projects, in tandem with toolkits which serve as a

starting point.

Moving forward, the team will continue the current state and needs analysis focusing on

identifying and mitigating harmful gender-differentiated impacts of large-scale RE projects;

identifying and promoting positive gender-differentiated impacts; and advancing greater benefit

sharing for impacted communities with a focus on women. The team will then develop a

targeted strategy to field-test in partnership with at least one of the RE project developers

supported by V-LEEP.

Project Management

Subcontracting and Key Personnel

All Key Personnel were fully mobilized on V-LEEP during Q3 Y4. During the quarter, the V-

LEEP team continued with activities based on support from the prime contractor, Deloitte

Consulting LLP, complemented by essential support from primary subcontractors, RCEE-NIRAS

and Deloitte Consulting Vietnam.

Reports, Deliverables, and Communications

V-LEEP submitted its quarterly progress report, accruals report, and financial report as contract

deliverables during Q3 Y4. In addition, V-LEEP continued with the practice of weekly status

reports to USAID on key milestones and achievements as well as team coverage and planned

activities.

PROGRESS BY PERFORMANCE INDICATORS

V-LEEP’s approved Monitoring & Evaluation Plan is currently under revision, to incorporate the

recommendations of an external Mid-Term Evaluation (MTE). The MTE team recommended,

and USAID concurred, that V-LEEP should drop all activities that provide direct support to

21

industrial enterprises on EE and eliminate the associated indicators and targets. These

indicators are therefore not included in the table and narrative below. In addition, the MTE team

recommended that V-LEEP revise the timing of its targets to reflect the long delays in Official

Development Assistance (ODA) project approval and the subsequent changes to activity

designs.

22

Progress by Performance Indicators: Quarterly and Cumulative

Indicator #

Description Units

Total Year

1 2 3 4 5

1

Greenhouse gas (GHG) emissions, estimated in metric tons of CO2e, reduced, sequestered, and/or avoided as a result of USG assistance

tCO2e

Target 361,494 0 0 18,088 90,375 253,031

Actual to date

4,599 0 0 2,628 Q1 Q2 Q3 Q4 Total

- 657 657 657 1,971

2

Number of Institutions with increased capacity to conduct integrated, long-term energy analysis and forecasting and incorporate models into policy design and decision making

Each

Target 37 0 15 15 5 2

Actual to date

7 0 0 7 Q1 Q2 Q3 Q4 Total

NA NA NA NA

3

Number of policies, regulations, or standards developed and promoted which improve the enabling environment for RE/EE projects, including through the incorporation of strategies to finance, replicate and scale up these projects

Each

Target 6 0 2 2 1 1

Actual to date

0 0 0 0

Q1 Q2 Q3 Q4 Total

NA NA NA NA

4

Amount of investment mobilized (in USD) from public and private resources for clean energy development

$USD Million

Target 250 0 5 35 150 60

Actual to date

268.59 0 0 99.61 Q1 Q2 Q3 Q4 Total

168.98 0 0 168.98

5 Number of MW of clean energy generation capacity that have achieved financial closure

MW

Target 200 0 0 25 125 50

Actual to date

271.4 0 0 40.6 Q1 Q2 Q3 Q4 Total

230.8 0 0 230.8

6 Number of MW of clean energy generation capacity installed or rehabilitated

MW

Target 200 0 0 10 50 140

Actual to date

271.4 0 0 0 Q1 Q2 Q3 Q4 Total

0 48.8 222.6 271.4

7 Number of bankable RE projects developed with private sector financing

Each

Target 4 0 0 2 2 0

Actual to date

6 0 0 5 Q1 Q2 Q3 Q4 Total

1 0 0 1

8 Number of local project developers who have gained skills to analyze RE resource assessments and

Each Target 15 0 5 2 5 3

Actual 10 0 1 9 Q1 Q2 Q3 Q4 Total

23

Indicator #

Description Units

Total Year

1 2 3 4 5

project documentation to meet financial community standards

to date NA NA NA NA

Actual to date

0 0 0 0

Q1 Q2 Q3 Q4 Total

NA NA NA NA

NA NA NA NA

15

Number of people receiving training in energy fields supported by USG assistance

Each

Target 620 0 110 175 185 150

Actual to date

584 12 108 348 Q1 Q2 Q3 Q4 Total

0 41 75 116

Male Each

Target 458 0 74 132 142 110

Actual to date

429 10 88 256 Q1 Q2 Q3 Q4 Total

0 25 50 75

Female Each

Target 162 0 36 42 44 40

Actual to date

155 2 20 92 Q1 Q2 Q3 Q4 Total

0 16 25 41

24

Results Narrative for Q3 Year 4:

Indicator 1:

Component 3: Since year 3 V-LEEP helped Thu Duc steel and a project of FUJI

Electric Vietnam to reduce GHG emissions:

o Thu Duc steel: 446 tCO2-e reduced per year (Q2 Y3)

o A project of FUJI Electric Vietnam: 2,182 tCO2-e reduced per year (Q4 Y3)

o Q3 Year 4 subtotal: 657 tCO2-e reduced (average by Thu Duc and Fuji)

Indicator 2:

Q3 Year 4: this indicator is marked NA (not applicable), as results are reported

annually

Indicator 3:

Q3 Year 4: this indicator is marked NA, as results are reported annually

Indicator 4:

No additional results in this Quarter 3

Year 4 subtotal: 168.98 $USD million

Indicator 5:


Year 4 subtotal: 230.8 MW

Indicator 6:

Q3 Y4: Four projects this quarter resulted in 222.6 MW of RE installed:

o Ha Do Group: 48 MW

o Bamboo Capital: 40.6 MW

o New Energy Investment: 30 MW

o Sao Mai Group: 104 MW

Year 4 subtotal: 271.4 MW

Indicator 7:


Year 4 subtotal: 1 project

Indicator 8:


Year 4 subtotal: 0 new developers

Indicator 15:

Component 2: V-LEEP trained 75 people in on fundamentals of financing Solar PV

projects (50 men and 25 women)

Q3 Year 4: 75 people (50 men and 25 women)

COOPERATION WITH OTHER USG AND DONOR PROGRAMS

Clean Energy Investment Accelerator (CEIA)

CEIA is an innovative public-private partnership initiative supported by the US and German

governments and other donors to drive deployment of RE solutions for large consumers in key

markets. In Vietnam, CEIA convenes corporate energy purchasers, project developers, and

government representatives to overcome barriers, pilot aggregated procurement models, and

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scale RE deployment across Vietnam. CEIA is co-led by Allotrope Partners, the World

Resources Institute, and the U.S. National Renewable Energy Laboratory.

In partnership with V-LEEP, CEIA is bringing together corporate buyers, project developers and

investors, and government officials in a series of public-private dialogues to help companies

identify market barriers, recommend solutions, and test innovative clean energy procurement

models. Through these dialogues, CEIA is amplifying private sector voices and sharing insights

with government decision makers on how to attract business investment for clean energy

development. This includes advancing conversations with the ERAV, MOIT, and to inform direct

power purchase agreement (DPPA) guidelines.

CEIA is also piloting solar PV purchasing models in Vietnam to aggregate clean energy demand

from multiple buyers at a single site, like industrial parks, as well as a single buyer across

multiple sites, such as retail chains. These aggregated purchasing models help reach

economies of scale, reduce costs, and improve access to financing.

Hawaii Natural Energy Institute (HNEI)

HNEI is a research unit of the School of Ocean and Earth Science and Technology (SOEST),

University of Hawai'i at Manoa (UHM) that conducts research of state and national importance

to develop, test and evaluate novel RE technologies. HNEI leverages its in-house work with

public-private partnerships to demonstrate real-world operations and enable integration of

emerging technologies into the energy mix. HNEI is a key partner for V-LEEPs work on PDP-8

and RPS, funded through external resources of the US Department of the Navy.

USAID Clean Power Asia Program

Many of the activities under this initiative of the USAID Regional Development Mission for Asia

(RDMA) complement V-LEEP in the areas of RE development. V-LEEP participated in

coordination meetings with USAID’s RDMA and the institutional contractor to ensure activity

planning remain well coordinated. In Vietnam, Clean Power Asia is working intensively with

developers of solar rooftop projects to accelerate their deployment, particularly in corporate

parks; and helps share international leading practices in RE development.

USAID Greening the Grid (GtG) Program

GtG provides training and capacity building on issues related to grid integration of intermittent

RE sources. GtG is a key partner for V-LEEPs work on PDP-8, RPS, and the REDS Action

Plan, funded through external resources of USAID, the Department of State, and other sources.

USAID Resources to Advance Low Emission Development Strategies

Implementation (RALI) Program

The RALI project helps developing countries speed their transition to climate-resilient, low-

emission, and sustainable economic growth. RALI supports the technically rigorous

development and implementation of low emission development strategies (LEDS) by providing

tools, technical assistance, and resources to support USAID and its partners, as well as host

country governments in the implementation of low emission development strategies. With V-

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LEEP, RALI is helping identify and formulate improved MRV systems that MOIT can incorporate

within several plans and programs, including its NDCs, GGAP, and RPS.

Documents

USAID VIETNAM LOW EMISSION ENERGY PROGRAM (V-LEEP)