Support Energy Development

  • A beneficiary can now have biogas for cooking, offered by a PDC project in Thai Binh

    A beneficiary can now have biogas for cooking, offered by a PDC project in Thai Binh Photo: Swedish Embassy

In 2004, Sweden and Vietnam’s ministry of Industry and Trade launched the Vietnam – Sweden rural energy program (VSRE) in order to support the acceleration of electrification in the country’s rural and mountainous areas through the use of off-grid renewable energy systems, especially small and medium-scale hydropower, solar and biogas technology.

VSRE produced numerous assessments of the capacity and renewable energy potential of rural areas across Vietnam to identify the most promising areas for development of indigenous renewable energy resources, and built capacity to support renewable energy policies.

Renewable energy systems are characterized by high upfront costs, and in Vietnam, high administrative costs. VSRE designed financing- and institutional models and a fund for off-grid electrification specifically to address these issues. It also applied a co-financing model for its four pilot projects – three mini hydro plants and a solar-diesel system.

VSRE was completed in 2010. Based on its success, the Government is now working with the Asian development Bank (ADB) to push the gains of the program further by scaling up a broader implementation of off-grid renewable energy projects.

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