EU Commits 430 Million EUR to Boost Vietnam’s Renewable Energy Transition
Representational image. Credit: Canva
The European Union (EU) has announced a 430-million-EUR (approximately 497.7 million USD) support package for Vietnam’s Bac Ai pumped-storage hydropower project, a flagship initiative under the country’s Just Energy Transition Partnership (JETP).
The announcement was made at the second Global Gateway Forum held in Brussels from October 9–10. Speaking at the event, EU Commissioner for Energy, Jozef Síkela, highlighted that the Bac Ai project represents a cornerstone in Vietnam-EU collaboration to establish a green, stable, and sustainable energy system. Commissioner Síkela noted that the initiative is designed to attract private investment while promoting green growth, emphasizing that the EU is translating its Global Gateway commitments into tangible outcomes “for people, the planet, and shared prosperity.”
The Bac Ai project is expected to strengthen the stability of Vietnam’s national power grid, support the expansion of renewable energy capacity, and advance the country’s carbon reduction and sustainable development goals.
The 430-million-EUR package is part of the Team Europe Initiatives, which brings together the EU, its member states, and development finance institutions including the French Development Agency (AFD), European Investment Bank (EIB), Germany’s KfW, Italy’s Cassa Depositi e Prestiti (CDP), and PROPARCO – the AFD’s private sector financing arm.
Between 2021 and 2027, the EU has pledged at least 293 million EUR to Vietnam, while total contributions from European partners for the JETP exceed 2.8 billion EUR. These investments aim to promote green infrastructure, accelerate Vietnam’s sustainable energy transition, and strengthen regional power connectivity within ASEAN.