USAID Vietnam Low Emission Energy Program (V-LEEP) Quarterly Report FY18 Q2 (January – March 2018)

After securing final formal approvals as an Official Development Assistance project, it conducted multiple consultations in FY18 Q2 with key departments of its designated counterpart within the Ministry of Industry and Trade (MOIT) to calibrate activities and expectations. V-LEEP also secured formal agreement from MOIT and USAID for an Operations Manual that details the principles and procedures for the program's operations. Following these requirements, V-LEEP made a final set of revisions to its FY18 work plan during Q2. Under Component 1 (energy policy and planning), V-LEEP responded to an urgent request from MOIT for help on Vietnam's next Power Development Plan (PDP-8). V-LEEP facilitated a mission of world-class experts from the USAID Greening the Grid (GtG) program and the National Renewable Energy Laboratory (NREL) to support MOIT in enhancing Vietnam's PDP-8 methodology to better incorporate variable RE opportunities and challenges. The result of this mission was general agreement from MOIT for a well-specified stream of support, which leverages more than $600,000 in external funding, for three components of work that will improve RE data visualization, analysis, and dissemination, and implement a solar and wind integration study. V-LEEP also facilitated support from NREL to address other key needs of MOIT, including development of a Renewable Energy Portfolio Standard, and an improved National Renewable Energy Development Strategy. Under Component 2 (renewable energy), V-LEEP continued its partnership with the Electricity Regulatory Authority of Vietnam to enable a new procurement mechanism that would allow global companies to secure renewable energy in Vietnam: the Direct Power Purchase Agreement (DPPA). V-LEEP completed the drafts of key reports that will underpin design and implementation of DPPA in Vietnam, including studies of international experience with the mechanism, and an in-depth assessment of options for designing a DPPA model and pilot program in Vietnam. V-LEEP continued to collaborate with the Renewable Energy Buyers Alliance Vietnam Working Group to channel a strong voice of foreign direct investors who wish to have this option as a means of meeting their global sustainability commitments. By the end of the quarter, three more companies had signed a formal declaration of support for DPPA in Vietnam, bringing the total number of endorsing companies to 20. Under Component 2, V-LEEP also continued to provide targeted transactional support to help RE projects secure financing and complete implementation. By the end of Q2, the program had executed letters of support with six companies that are developing 586 megawatts of solar and wind projects with an aggregate investment value of $624.7 million. Under Component 3 (industrial energy efficiency), V-LEEP began to design specific approaches to meet the newly elicited needs of MOIT's Energy Efficiency and Sustainable Development department. V-LEEP also continued its direct support to key industrial enterprises and in Q2 verified that the Thu Duc Steel company has successfully implemented detailed V-LEEP recommendations that will save the company both energy and money. The program's progress and achievements in Q2 demonstrate its commitment to supporting Vietnam's transition to a low-emission economy and reducing greenhouse gas emissions.