HANOI (Bernama-VNA): The Vietnam Electricity (EVN) Group has announced that it signed a credit agreement with the French Development Agency (AFD) for a loan worth 76 million EUR (US$89.47 million) to implement the Bac Ai pumped-storage hydropower plant (Bac Ai project) in Khanh Hoa province, Vietnam News Agency reported.
This is the first of six loans, totalling nearly 480 million EUR, provided by a consortium of six lenders for the project.
The Bac Ai hydropower project has a designed capacity of 1,200 MW, comprising four turbines of 300 MW each, with a total investment of 21.1 trillion VND (US$802.5 million). It is included in the list of power projects approved in principle for investment by the Prime Minister.
The project holds significant importance for the national power system, especially as many renewable energy plants, including solar and wind, are being integrated. Its main task is to provide peak-load electricity, helping to smooth load fluctuations by pumping during off-peak hours and generating power during peak hours.
According to Julien Seillan, AFD Country Director in Vietnam, the project is one of the key energy projects that plays a central role in Vietnam’s energy transition.
He praised Vietnam’s achievements in implementing renewable energy projects, despite the intermittency of these sources, and highlighted the need for a stable and storable energy reserve.
He stated that the Bac Ai project offers the solution, with its 1,200 MW capacity ensuring that every kilowatt of green electricity is available exactly when demand is at its highest.
The project is symbolic of international support for Vietnam, involving the European Union (EU), AFD, Germany’s KfW Development Bank, the European Investment Bank (EIB), Japan’s International Cooperation Agency (JICA), Italy’s Cassa Depositi e Prestiti (CDP), and Proparco - a French development finance institution.
It highlights the effectiveness of close cooperation, providing a strong foundation for implementing a large-scale and critical project.
EVN Deputy General Director Nguyen Xuan Nam emphasised that the group, as a key player in modernising the power system and promoting clean technology, sees the 76 million USD loan from AFD and EU support through the Energy Transition Programme between European donors and EVN (ETEF) as a clear reflection of Vietnam’s Just Energy Transition Partnership (JETP) with the international community. -- Bernama-VNA
