FY2021 QUARTER III REPORT: USAID Vietnam Urban Energy Security

The project aims to achieve the following high-level expected results: at least 400 megawatts (MW) of advanced, distributed energy systems deployed, at least $600 million in public and private investment mobilized for advanced, distributed urban energy systems, and at least 20 innovative solutions to address urban energy and environment issues demonstrated and/or commercialized. The project's objective and associated activities are linked to USAID/Vietnam's Development Objective Three - Environmental security improved to further grow a clean, secure, and market-driven renewable energy sector, protect forests and biodiversity, counter wildlife trafficking, and curb environmental pollution. The project is working with the Department of Industry and Trade (DOIT) in both target cities to achieve the following objectives: improve the enabling environment including policies, regulations, and city-level energy programs to increase the market size for the deployment of advanced, distributed energy systems, mobilize public and private sector investment for the deployment of advanced, distributed energy systems, and increase adoption of innovative technologies, business practices, and financing models for advanced, distributed urban energy solutions. Following the Project Approval by the Da Nang People's Committee on March 31, 2021, the USAID Vietnam Urban Energy Security team successfully organized the project launch ceremony on June 30, 2021 in a hybrid format. The Project Team continued to focus on securing project approval in HCMC while building a solid technical and operational foundation from which to launch once approval is secured. In collaboration with the National Renewable Energy Laboratory (NREL), the Project successfully organized a capacity building workshop with more than 145 participants from the HCMC and Da Nang DOITs, Electricity of Vietnam (EVN), the cities' agencies, and the grid operators. The Project organized an online workshop on April 28 with the U.S. International Development Finance Corporation (DFC) to connect Vietnamese banks and local and international developers to facilitate investments from the DFC to renewable energy and energy efficiency projects in Da Nang and HCMC. More than 50 developers attended the workshop, including local banks, investors, developers, and startups. The Project identified a number of potential candidate projects that align with DFC's and Project's mandate and objectives that will be further discussed and shortlisted with DFC in the next reporting period. The Project also completed the design of the Innovation Challenge Fund (ICF) and the release of the first round of requests for proposals (RFPs) in mid-June. The ICF design provides a comprehensive plan for the funding of 20 innovations, including a communication strategy for ICF and independent monitoring, evaluation, and learning (MEL) service for each innovation. The first round of ICF targets five innovative, clean energy solutions, suitable for application in industrial plants and commercial buildings, and one innovative mobile application that helps households to monitor and save on electricity bills. During this reporting period, the COVID-19 situation in the country became more serious, affecting the implementation of planned activities and resulting in revised timelines for achieving project milestones. In mid-May, the Project initiated a flexible work policy to continue implementation of the project during the pandemic. A major focus of the team was on staff health and safety and creating the conditions for the whole team, across three project offices, to work remotely. The Project completed the recruitment process to engage short-term technical assistance in order to support the formulation of a finance mechanism to enforce the Energy Efficiency Action Plan in Da Nang, and the Project and Da Nang DOIT established monthly online progress meetings with participants from the project senior leadership team, CTF, and DOIT's leadership to provide updates on the ongoing activities, receive concurrence or direction from DOIT, and agree on next steps. The Project accelerated its activity implementation and adjusted the staffing structure to include Component Leads. For Component 1, the team will promote one of the Technical Advisors to lead the team and activities. The recruitment process for Components 3 was completed, with the expectation for the new staff to be on board starting in August. The team also finalized the recruitment for the MEL Assistant, and identified a suitable candidate, to begin in July.