USAID VIETNAM LOW EMISSION ENERGY PROGRAM (V-LEEP)
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USAID VIETNAM LOW EMISSION ENERGY PROGRAM (V-LEEP) Quarterly Report FY17 Q3 (April – June 2017) July 15, 2017 – Revised August 9, 2017 This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the sole responsibility of the Vietnam Low Emission Energy Program and do not necessarily reflect the views of USAID or the United States Government. 1
USAID VIETNAM LOW EMISSION ENERGY PROGRAM (V-LEEP) Quarterly Report FY17 Q3 (April – June 2017) Prepared for: USAID/Vietnam, Environment and Social Development Office Prepared by: Contract No. AID-440-TO-15-00003 July 15, 2017 – Revised August 9, 2017 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
TABLE OF CONTENTS Acronyms and Abbreviations .................................................................................................. i Executive Summary ................................................................................................................. 1 Báo Cáo Tóm Tắt ..................................................................................................................... 2 V-LEEP Overview ..................................................................................................................... 3 Progress and Achievements ................................................................................................... 4 Component 1: Low Emission Strategy Development for the Energy Sector.............................4 Component 2: Enhance Capacity and Improve Enabling Environment for RE Development ... 4 Component 3: Increase Energy Efficiency Adoption and Compliance ....................................7 Cross-cutting Activities ............................................................................................................9 Project Management ...............................................................................................................9 Progress by Performance Indicators .....................................................................................11 Considerations and Challenges .............................................................................................12 FY17 Q4 Project Forecast .......................................................................................................13 Component 1: Low Emission Strategy Development for the Energy Sector........................... 13 Component 2: Enhance Capacity and Improve Enabling Environment for RE Development . 13 Component 3: Increase Energy Efficiency Adoption and Compliance .................................. 14 Cross-cutting Activities ..........................................................................................................14 Cooperation with Other USG and Donor Programs..............................................................15 USAID Vietnam Clean Energy Program ................................................................................15 Vietnam Central Province Green Growth Growth Action Plan ...............................................15 USAID Clean Power Asia ......................................................................................................15 Clean Energy Investment Accelerator ...................................................................................15 USAID Greening the Grid ......................................................................................................15 Climate Economic Analysis for Development, Investment and Resilience ............................. 15 Other International Donor Programs......................................................................................15
ACRONYMS AND ABBREVIATIONS
ADB Asian Development Bank
AFD Agence Française de Développement
CEIA Clean Energy Investment Accelerator
CEADIR Climate Economic Analysis for Development, Investment and Resilience
CMVP Certified Measurement and Verification Professional
CPA Clean Power Asia
DANIDA Danish International Development Agency
DOIT Department of Industry and Trade
DPPA Direct Power Purchase Agreement
EE Energy Efficiency
EIB European Investment Bank
ERAV Electricity Regulatory Authority of Vietnam
ESCO Energy Service Company
EU European Union
EVN Electricity Vietnam
FY Fiscal Year
GDE General Directorate of Energy
GIZ Gesellschaft für Internationale Zusammenarbeit
GVN Government of Vietnam
HCMC Ho Chi Minh City
IFC International Finance Corporation
IZ Industrial Zone
JICA Japan International Cooperation Agency
KfW German Development Bank (Bank for Reconstruction)
LASUCO Lam Son Sugar Joint Stock Company
MOC Ministry of Construction
MOF Ministry of Finance
MOIT Ministry of Industry and Trade
MONRE Ministry of Natural Resources and Environment
MPI Ministry of Planning and Investment
NDC National Determined Contributions
NDF Nordic Development Fund
NREL National Renewable Energy Laboratory
PAD Project Assistance Document
PGGAP Provincial Green Growth Action Plan
PPC Peoples Provincial Committee
PPP Public Private Partnership
PV Photovoltaic
RDMA Regional Development Mission for Asia
RE Renewable Energy
SECO Swiss State Secretariat for Economic Affairs
SME Small and Medium Enterprise
TBD To be determined
UNIDO United Nations Industrial Development Organization
USAID United States Agency for International Development
USG United States Government
VASEP Vietnam Association of Seafood Exporters and Producers
VBMA Vietnam Building Material Association
VCEP USAID Vietnam Clean Energy Program
VICEM Vietnam National Cement Corporation
VINATEX Vietnam National Textile and Garment Group
VITAS Vietnam Textile and Apparel Association
VNCA Vietnam Cement Association
VNSteel Vietnam Steel Corporation
VPPA Vietnam Pulp and Paper Association
VSA Vietnam Steel Association
VSSA Vietnam Sugar Cane and Sugar Association
iEXECUTIVE SUMMARY
The primary focus of V-LEEP’s efforts in Q3 was advancing the US government’s (USG) priority
of enabling foreign companies to meet their global renewable energy (RE) and sustainability
commitments through Direct Power Purchase Agreements (DPPAs). Foreign direct investors
have voiced a desire to use DPPAs as a method for achieving these goals. The Government of
Vietnam (GVN) has engaged the Electricity Regulatory Authority of Vietnam (ERAV) to work in
close collaboration with V-LEEP to respond to this appeal from the private sector.
In partnership with ERAV, and harnessing a whole-of-government approach that leverages key
resources such as the Clean Energy Investment Accelerator (CEIA), V-LEEP is coordinating a
multi-pronged approach that will specify the legal and institutional changes required to enable
DPPA in Vietnam. The effort will assess how other markets have applied DPPAs and how Vietnam
can learn from these experiences as well as develop a model for DPPA transactions in Vietnam,
recruit leading firms as buyers and sellers for a set of pilot programs, examine their experiences,
and ultimately enable and promote full-scale adoption of DPPA.
V-LEEP initiated two supplemental initiatives during Q3 that will continue during for the remainder
of Year 2 as well as into Year 3 and underpin the success of DPPA efforts. The first of these is a
program, which will select a cluster of provinces to support RE planning and streamlined project
approval, particularly for solar photovoltaic (PV) projects. In these provinces V-LEEP will focus
support on advancing specific RE projects, through services such as independent investment
appraisal among others. In Q3, V-LEEP conducted the initial set of in-person consultations that it
will combine with its earlier detailed desk studies to inform this selection.
The second initiative will channel V-LEEP support for EE through assistance to industrial
associations and their member companies. To support this approach, V-LEEP has signed formal
project assistance documents (PADs) with the Vietnam Sugar Cane and Sugar Association
(VSSA), Vietnam Textile and Apparel Association (VITAS), Vietnam Steel Association (VSA), and
Vietnam Steel Corporation (VN Steel).
Other key achievements in Q3 include conducting technical training for industrial companies and
energy service providers on methods to measure the performance of energy efficiency projects;
finalizing a forecast of electricity tariffs for industrial consumers, which the program will release in
Q4; completing site assessment recommendations for a 30 MW solar PV project sponsored by
Lam Son Sugar Joint Stock Company (LASUCO); and co-hosting a premier women-in-energy
event with the USAID Vietnam Clean Energy Program (VCEP) and UN-Habitat. V-LEEP also
assembled its final project team, with the deployment of its Chief of Party; selection of two
remaining Component Leads; and on-boarding of its Operations Director.
1BÁO CÁO TÓM TẮT
Trong Q3, V-LEEP tập trung chủ yếu vào các ưu tiên hỗ trợ của Chính phủ Hoa Kỳ (USG) nhằm
giúp các công ty nước ngoài thực hiện được được các cam kết của họ về tính bền vững và năng
lượng tái tạo. Các nhà đầu tư trực tiếp nước ngoài đã thể hiện mong muốn sử dụng Hợp đồng
Mua bán Điện Trực tiếp (DPPA) làm phương pháp đạt được các mục tiêu này. Chính phủ Việt
Nam (GVN) đã giao Cục Điều tiết Điện lực (ERAV) phối hợp chặt chẽ với V-LEEP nhằm đáp ứng
mong muốn này từ khối tư nhân.
Để hợp tác với ERAV và triển khai các hoạt động phối hợp liên ngành, liên bộ giúp phát huy các
nguồn lực chính, ví dụ như Quỹ Thúc đẩy Đầu tư Năng lượng Sạch (CEIA), V-LEEP đang sử
dụng cách tiếp cận đa chiều để xác định các điểm cần thay đổi về pháp lý và thiết chế để triển
khai DPPA ở Việt Nam. Cách tiếp cận này sẽ đánh giá cách DPPA phát huy tác dụng ở các thị
trường khác và xem xét liệu Việt Nam có thể học hỏi gì từ kinh nghiệm của họ, cũng như xây
dựng một mô hình để tiến hành các giao dịch DPPA, chọn lựa các công ty hàng đầu với vai trò
là những người mua và người bán cho một loạt các chương trình thí điểm, kiểm tra kinh nghiệm
của họ và nhất là áp dụng và xúc tiến rộng rãi việc áp dụng DPPA.
Bước đầu V-LEEP đã triển khai hai sáng kiến bổ sung trong Q3 và sẽ tiếp tục thực hiện trong
thời gian còn lại trong năm thứ 2 và đầu năm thứ 3 và tiếp tục củng cố các kết quả đạt được
trong quá trình triển khai DPPA. Sáng kiến đầu tiên là một chương trình nhằm chọn lựa một nhóm
các tỉnh nhằm hỗ trợ lập kế hoạch năng lượng thấp và phê duyệt dự án một cách bài bản, đặc
biệt với các dự án điện mặt trời (PV). Tại các tỉnh đó, V-LEEP sẽ tập trung hỗ trợ đẩy mạnh các
dự án năng lượng thấp cụ thể, thông qua các dịch vụ như thẩm định đầu tư độc lập. Trong Q3,
V-LEEP đã tổ chức các hoạt động tham vấn trực tiếp ban đầu để sau đó sẽ kết hợp với các
nghiên cứu tại bàn trước đó để thông báo việc chọn lựa này.
Sáng kiến thứ hai là sẽ triển khai các hỗ trợ về sử dụng năng lượng tiết kiệm và hiệu quả (EE)
của V-LEEP thông qua các hiệp hội công nghiệp hàng đầu và các các công ty thành viên của họ.
Để hỗ trợ cách tiếp cận này, V-LEEP đã ký các Văn kiện Hỗ trợ Dự án (PAD) với Hiệp hội Mía
đường Việt Nam (VSSA), Hiệp hội Dệt may Việt Nam (VITAS), Hiệp hội Thép Việt Nam (VSA) và
Tổng công ty Thép Việt Nam (VN Steel).
Các kết quả chính đã đạt được trong Q3 là đào tạo kỹ thuật cho các công ty công nghiệp và các
nhà cung cấp dịch vụ năng lượng để đo lường hiệu quả thực tế của các dự án tiết kiệm năng
lượng; hoàn thành dự báo giá điện cho người tiêu dùng trong lĩnh vực công nghiệp, sẽ được
công bố vào Q4; hoàn thành các đề xuất đánh giá hiện trường cho dự án điện mặt trời 30MW do
LASUCO đầu tư; và đồng tổ chức một sự kiện hàng đầu về “Phụ nữ với năng lượng” phối hợp
cùng chương trình VCEP của USAID và UN-Habitat. V-LEEP cũng đã hoàn thiện đội ngũ dự án
của mình, với việc một Giám đốc Dự án, hai Trưởng Hợp phần và một Trưởng bộ phận Hành
chính tổng hợp chính thức nhận nhiệm vụ.
2V-LEEP OVERVIEW
The United States Agency for International Development (USAID) Vietnam Low Emission Energy
Program (V-LEEP) is designed to help the Government of Vietnam (GVN) establish an effective
policy, regulatory, and incentive environment for low-emission growth in the energy sector, while
simultaneously attracting public- and private-sector investment in renewable energy (RE)
development and energy efficiency (EE). V-LEEP promotes the development of critical building
blocks to scale up clean energy, such as accessible smart incentives for clean energy and EE
investments, enabling a competitive environment for RE generation, enhancing renewable power
grid integration, and ensuring locational concentration of clean energy generation facilities.
Three components form the core tasks under the approved V-LEEP Year 2 Work Plan:
Component 1: Low Emission Strategy Development for the Energy Sector
Task 1.1: Enhance GVN capacity to analyze and develop clean energy strategies, and
evaluate emission mitigation options for decision-making.
Component 2: Enhance Capacity and Improve Enabling Environment for Renewable Energy
Development
Task 2.1: Enhance capacity of Vietnamese government institutions to improve the
enabling environment for RE development.
Task 2.2: Enhance capacity of RE developers and the private sector in large-scale RE
development.
Task 2.3: Increase adoption of RE in industry.
Component 3: Increase Energy Efficiency Adoption and Compliance
Task 3.1: Enhance government capacity to strengthen energy efficiency policy
implementation.
Task 3.2: Enhance energy efficiency in energy-intensive industry sectors.
3PROGRESS AND ACHIEVEMENTS
As a result of receiving approval from USAID at the end of the first quarter of Y2 to accelerate
private sector activities, the program gained significant momentum in all areas during Q3.
Component 1: Low Emission Strategy Development for the Energy Sector
Component 1 activities during Q3 focused on informing the future selection of priority provinces
for V-LEEP would support. V-LEEP drafted a summary and analysis of the Provincial Green
Growth Action Plans (PGGAPs) which includes a summary of provincial commitments to clean
energy, and associated targets. This report is currently under internal review and complements
an earlier report delivered by the project in Year 2, which assesses overall RE potential at the
provincial level.
Based on these findings, and on the increasing level of interest in solar PV development in
southern Vietnamese provinces with high solar resource potential, V-LEEP conducted a set of
exploratory missions in June and July to An Giang, Bac Lieu, Soc Trang, and Tay Ninh. Project
representatives met with senior officials in each province from the Departments of Industry and
Trade (DOIT), Departments of Planning and Investment (DPI), Departments of Natural Resources
and Environment (DONRE), and Provincial People’s Committees (PPC) to discuss the potential
for collaboration.
Component 1 is dependent on GVN Activity Approval and intensive engagement with relevant
central government counterparts, and therefore most of V-LEEP’s other Component 1 work
remained on hold in Q3.
Component 1 Year 2 Deliverables 1
Deliverable Completion Date
Final Characterization Report (Task 1.1, Activity 1) July 2017
Implementation plans for PGGAP (Task 1.1, Activity 3) July 2017
Strategy White Paper (Task 1.1, Activity 4) August 2017
Final Optimization Report (Task 1.1, Activity 2) September 2017
Workshops (Task 1.1, Activity1+2+4) September 2017
Component 2: Enhance Capacity and Improve Enabling Environment for RE
Development
During Q3, V-LEEP’s primary focus under Component 2 has been working with ERAV to chart a
path for the introduction of Direct Power Purchase Agreements (DPPAs) in Vietnam. DPPAs are
transactional mechanisms that aid large, multinational companies to procure grid-connected
electricity from RE sources without having to establish their own captive power mechanisms.
Major companies such as Nike, Coca Cola, Apple, and Intel have joined formal programs such
as RE-100 that require such commitments. These players are also leading members of focused
1
Deliverable due dates from the Year 2 Work Plan, approved December 22, 2016, were set based on the assumption that GVN
Activity Approval would be received by March 31, 2017. Approval is now anticipated by July 31, 2017.
4working groups such as the Renewable Energy Buyers Alliance that explore specific approaches
to corporate procurement of RE.
In Vietnam, enabling and promoting a mechanism for DPPA is a high priority goal for USAID, the
US Embassy, and the foreign business community. Furthermore, DPPA is the primary
recommendation issued by the Vietnam Business Forum in its report on strengthening Vietnam’s
energy systems.
In Q3, V-LEEP worked closely with senior officials within the primary Vietnamese government
counterpart organization for this effort, the Electricity Regulatory Authority of Vietnam (ERAV), to
design and implement a coordinated program of support to authorize DPPA in Vietnam. To
leverage the full force of USG stakeholders, V-LEEP convened a consortium of other USG
programs including the Clean Energy Investment Accelerator (CEIA), US Commercial Service
(USCS), and USAID Greening the Grid (GtG) program.
Legal and Institutional Review. In Q2, V-LEEP engaged a specialty legal subcontractor, DFDL,
to assess the legal and institutional framework for DPPA in Vietnam, issue a report that identifies
barriers to its adoption, and recommend specific actions required to enable it. DFDL completed
this draft report in June. The V-LEEP team anticipates finalizing this report in July so that USAID
and ERAV use it as the basis for specific legal and regulatory changes required to enable DPPA
in Vietnam. V-LEEP anticipates that this will take the form of a formal Decision by the Prime
Minister to authorize DPPA pilots and to ultimately authorize a full-scale adoption of DPPA. In Q3,
V-LEEP co-sponsored the first of such business-oriented workshops with the US Commercial
Service (USCS), a half-day event at Saigon Hi-Tech Park (SHTP) that featured a panel on DPPA
and included senior representation from leading firms such as Intel and Coca Cola.
DPPA Models Review and Proposal. To inform ERAV on international experience with DPPA,
during Q3, V-LEEP engaged international experts from within Deloitte Consulting to work in
collaboration with local experts on the V-LEEP team to assess international experience and best
practices with DPPA application. This assessment will include a mapping of transactional and
financial flows of DPPA within other markets with applicable contexts to Vietnam. V-LEEP
anticipates completing this exercise in Q4, discussing it in detail with ERAV and other key
stakeholders, and using it to prepare the template for a proposed DPPA model in Vietnam. V-
LEEPs discussions with key counterparts and stakeholders, including ERAV and Electricity
Vietnam (EVN), identified a key concern being the potential impairments to system reliability
resulting from the innate intermittency of RE. In response to this, in Q3, the team began
coordinating with USAID GtG to design a series of training and capacity building activities that
provide reassurance on grid integration.
DPPA Piloting and Roadmap. During Q3, V-LEEP began pursuing the goal of securing an
announcement for DPPA pilots at the Asia-Pacific Economic Cooperation (APEC) meeting in
November 2017 in Hanoi. To leverage existing relationships with the global companies that are
already committed to RE-100 and are active in the Renewable Energy Buyers Alliance, V-LEEP
began negotiating a strategic roadmap and outreach plan with the Clean Energy Investment
Accelerator (CEIA) – an initiative supported by USAID and the Department of State that features
the World Resources Institute (WRI), National Renewable Energy Laboratory (NREL) and
Allotrope Partners (a boutique investment and financial advisory firm). CEIA and its members
5work actively with the global business community on corporate procurement of RE, and V-LEEP
will coordinate their work to recruit companies to pilot DPPA in Vietnam in advance of November
2017 to allow for an announcement of this effort at the APEC meeting. This joint activity will
continue through the next two fiscal years (FY18 and FY19) as V-LEEP continues to collaborate
with ERAV and partners to facilitate the DPPA pilots, assess their results, formulate a suitable
DPPA model and template, and seek its authorization in a Decision of the Prime Minister.
Another key approach to leverage corporate commitments to RE is the support of captive power
projects in Vietnam. In Q3, V-LEEP provided direct support to Coca-Cola, as a part of a broader
approach being facilitated under CEIA. A Memorandum of Understanding (MOU) with USAID on
corporate sustainability signed in October 2016 formalized V-LEEP’s support to Coca-Cola. V-
LEEP initiated a technical study requested by Coca-Cola to examine potential changes in the
electricity tariff that EVN charges to large industrial customers. Such changes could have
significant impact on decisions to procure RE. The V-LEEP team is currently preparing a study
that summarizes the tariff forecasts of other organizations (e.g., the World Bank), and will be
accompanying this with results of a new modeling exercise (using an approach similar to that
used by ERAV and EVN to set tariffs) that examines the sensitivity of system costs to varying
levels of RE penetration. V-LEEP prepared a draft tariff forecast report at the end of Q3. The draft
is presently under review and V-LEEP will finalize and submit it in Q4.
V-LEEP continued to support the Lam Son Sugar Joint Stock Company (LASUCO) during Q3,
under a Project Assistance Document (PAD) executed in Q2. V-LEEP is assisting LASUCO in
the design and implementation of a 30 MW grid-connected solar energy project in the province of
Thanh Hoa. According to the PAD, during Q3 and Q4, V-LEEP will support LASUCO’s overall
project planning, site selection, and pre-feasibility analysis. During Q3, V-LEEP collaborated with
LASUCO to develop a project management system that includes a detailed action plan and
timeline. To support site selection, V-LEEP deployed modeling tools to identify six potential sites,
and then conducted two scoping missions to collect field data and make detailed
recommendations on site selection. V-LEEP completed this work in Q3 and will help LASUCO
finalize the site in Q4.
V-LEEP’s support in Q3 for encouraging development of grid-connected solar projects also
featured its engagement with a regional USAID program: Clean Power Asia (CPA). V-LEEP and
CPA met in Manila at the Asia Clean Energy Forum (ACEF) to discuss potential collaboration to
effectively connect solar project developers with financial institutions.
In Q3, V-LEEP also executed a PAD with the Vietnam Sugar Cane and Sugar Association (VSSA)
for joint activities to help its member companies assess, design, and implement both RE projects
(under Component 2) and EE projects (under Component 3). V-LEEP worked with VSSA to
prepare an action plan for this support, and also met with another key donor (GIZ) to ensure that
its activities reinforce those planned under V-LEEP.
Several additional activities listed in the approved Work Plan under Component 2 require
intensive official interaction with GVN and thus remained on hold during Q3 due to delayed GVN
Activity Approval. These include: stakeholder consultation with MOIT/GDE for feedback on the
On-Grid RE Project Prospectus, further development of a Renewable Energy Supply Industry
6Roadmap, stakeholder consultations and feedback on the Alternative Procurement Mechanisms
Assessment, and stakeholder dialogue on the Industrial RE Adoption Analysis.
Component 2 Year 2 Deliverables 2
Deliverable Completion Date
Renewable Energy Portfolio Standard (Task 2.1, Activity 1) September 2017
RESI Roadmap (Task 2.1, Activity 2) July 2017
Direct Power Purchase Agreements Assessment Report April 2017
Alternative Procurement mechanisms Assessment (Task 2.1, Activity 3) July 2017
Net-Metering Circular (Task 2.1, Activity 4) September 2017
Project Development Training Workshops (Task 2.2, Activity1) August 2017
On-Grid RE Project Prospectus (Task 2.2, Activity 2) June 2017
Updated DCA Market Study( Task 2.2, Activity 3) July 2017
Renewable Energy Promotion Center Concept Note (Task 2.2, Activity 4) August 2017
Industry RE Adoption Analysis (Task 2.3, Activity 1) May 2017
Industry RE Adoption Capacity Building (Task 2.3, Activity 2) September 2017
RE Adoption Project Pre-Feasibility Analysis (Task 2.3 Activity 3) September 2017
Supporting Workshops, Trainings, Consultations (all) April – September 2017
Component 3: Increase Energy Efficiency Adoption and Compliance
V-LEEP initiated a strategy in Q2 to channel its delivery of industrial EE support through
collaboration with leading Vietnamese industrial associations and their member companies. In
Q3, the program signed new PADs with the VSSA (as highlighted above) as well as with the
Vietnam Steel Association (VSA) and Vietnam Steel Corporation (VNSteel). These are in addition
to the PADs with LASUCO and the Vietnam Textile and Apparel Association (VITAS) that V-LEEP
signed in Q2.
Each PAD provides for a standard process of engagement aimed at helping associations and
their member companies better appreciate the business case for clean energy, benchmark their
energy performance, identify specific opportunities to deploy RE and EE, assess and design
projects, secure financing, and implement actual activities.
V-LEEP conducted a robust set of activities with VITAS in Q3. This included a meeting to finalize
the action plan, initiation of an industry benchmarking exercise, and completion of walk-through
audits of eleven textile and apparel facilities in both southern provinces (Binh Duong, Dong Nai,
HCMC, and Tien Giang), and northern provinces (Ha Nam, Hai Phong, Hanoi, and Hung Yen)
that yielded detailed recommendations for specific EE improvement projects.
For the steel industry, V-LEEP negotiated and signed a PAD in Q3 with VNSteel, a leading state-
owned enterprise that includes 12 subsidiaries and 14 joint ventures located throughout Vietnam
that produce and trade in steel and steel products. In addition, V-LEEP executed a PAD with VSA,
2
Deliverable due dates from the Year 2 Work Plan, approved December 22, 2016 were set based on the assumption that GVN Activity
Approval will be received by March 31, 2017. Approval is now anticipated by July 31, 2017.
7an industry association co-located at the premises of VSC that represents the broader steel
industry in Vietnam.
A key area of interest for industrial companies that are
considering investment in EE is how to measure the
actual performance of their projects. In Q3, V-LEEP
partnered with the Association of Energy Engineers
(AEE) to conduct a world-class training course on
protocols for measurement and verification of EE
projects. This course, designed to certify practitioners
with the internationally-recognized designation of
Certified Measurement and Verification Professional®
(CMVP®), V-LEEP convened 28 students from various
industry sectors (e.g., three senior sustainability and
facility team members from Coca-Cola) and
specialized energy service providers for a three-day
intensive training workshop in Hanoi. The course
culminated in a half-day examination, of which 14 of
the 28 students passed. Upon successfully
demonstrated the requisite work experience to AEE,
these 14 individuals will receive their CMVP®
credential. Translation of the International Performance
Measurement and Verification Protocol
Based on discussions that V-LEEP conducted during
the CMVP® training and on a review of MOIT requirements for training and certification of energy
managers for Designated Energy Users, V-LEEP concluded that it was not an appropriate
strategy for the program to support formation of an AEE chapter in Vietnam or to offer additional
AEE certification programs such as its course for Certified Energy Managers.
Due to delays in GVN Activity Approval, the Component 3 activities specified in the approved
Work Plan that require intensive interaction with the central government (e.g., conclusion of
stakeholder consultations and establishment of a working group, preparation of a final industry
characterization) could not proceed.
Component 3 Year 2 Deliverables 3
Deliverable Completion Date
Stakeholder Consultations and Working Group Establishment Report (Task 3.1, Activity 1) June 2017
Industry Characterization Final report (Task 3.2, Activity 1) July 2017
Workshops proceedings (Task 3.1, Activity 1) September 2017
Report Recommendation for AEE chapter and Certification Program (Task 3.2, Activity 2) July 2017
3
Deliverable due dates from the Year 2 Work Plan, approved December 22, 2016 were set based on the assumption that GVN Activity
Approval would be received by March 31, 2017. Approval is now anticipated by June 30, 2017.
8Cross-cutting Activities
Cross-cutting activities continued to mirror and complement core technical activities under each
component. A full update on the status of progress against the Monitoring & Evaluation Plan
indicator targets is below.
V-LEEP teamed with the Vietnam Clean Energy Program (VCEP) and UN-Habitat to host a
Women Champions in Green Urban Development, Clean Energy, and Green Growth event in Q3
at the UN building in Hanoi. V-LEEP collaborated with VCEP on planning and recruitment of a
diverse group of relevant Women Champion panelists from the clean energy sector. V-LEEP also
helped recruit potential participants, targeting young female professionals and students pursuing
careers in clean energy in Vietnam. Coverage of the event included Nhân Dân Online TV, which
featured an in-depth segment. This event will fulfill the spirt of the activity listed below as
“Workshop at university counterpart institution for young women in energy management,
entrepreneurship and engineering.” V-LEEP will gather data on female self-efficacy in this sector
in accordance with Indicator 14. Other gender work that V-LEEP commenced in Q3 was the
detailed planning to conduct a Gender and Energy Snapshot exercise in Q4.
Cross-cutting Year 2 Deliverables 4
Deliverable Completion Date
Gender Equality and Women’s Empowerment
Gender parity analysis included in all technical reports Ongoing
Statement of encouragement for women’s participation included in invitations for all training events,
Ongoing
seminars, and workshops
Workshop at university counterpart institution for young women in energy management,
June 2017
entrepreneurship and engineering
Gender lens investing in clean energy seminar for investors, project developers, and regional impact
August 2017
investing organizations
Status of Gender and Energy in Vietnam Report September 2017
Monitoring and Evaluation
M&E dashboard and database April 2017
Baseline tools preparation for indicators 2, 9, 11, and 14 April 2017
Reporting tools for indicators 1, 4, 5, 6, 7, 10, 12, 13 April 2017
M&E AIDTracker+, TraiNet, quarterly and annual reporting Ongoing
Communications
GVN Activity Approval Announcement Ceremony June 2017
Year 2 Communications Plan May 2017
Project Management
Subcontracting and Key Personnel
4
Deliverable due dates from the Year 2 Work Plan, approved December 22, 2016 were set based on the assumption that GVN Activity
Approval would be received by March 31, 2017. Approval is now anticipated by June 30, 2017.
9V-LEEP continued to draw essential support from primary subcontractors RCEE and Deloitte
Consulting Vietnam. V-LEEP also engaged AEE and DFDL as subcontractors during Q3.
Reports & Deliverables
V-LEEP submitted the FY17 Q2 Quarterly Report and the FY17 Q1 Accruals Report as contract
deliverables during Q3. In addition, V-LEEP continued with the practice of regularly status reports
to USAID on key milestones and achievements as well as team coverage and planned activities.
Other Notes
V-LEEP held several cross-cutting meetings and events as well as attended relevant events and
workshops both in Vietnam and regionally, including:
Women Champions in Green Urban Development, Clean Energy, and Green Growth, April
4, 2017 (Hanoi, Vietnam)
DPPA Roundtable at the Saigon Hi-Tech Park, April 20, 2017 (Ho Chi Minh City, Vietnam)
International Solar Auction Experience and Implication to Vietnam, World Bank, May 18,
2017 (Hanoi, Vietnam)
Development of Photovoltaics Sector in Vietnam: Current Situation and International
Experiences, GIZ May 26, 2017 (Ho Chi Minh City, Vietnam)
Asia Clean Energy Forum, June 6-10, 2017 (Manila, Philippines)
GIZ Solar Working Lunch and coordination meeting, June 13, 2017 (Hanoi, Vietnam)
Meetings with southern provinces (An Giang, Bac Lieu, Soc Trang, Tay Ninh), June 19-23.
Meetings with industry associations: VITAS, VSA, Vietnam Cement Association (VNCA),
Vietnam Building Material Association (VBMA), VSSA, Vietnam Association of Seafood
Exporters and Producers (VASEP), and Vietnam Pulp and Paper Association (VPPA)
Meeting with large industry corporations: EVN, Vietnam National Cement Corporation
(VICEM), VNSteel, Hatien Cement, and Vietnam National Textile and Garment Group
(VINATEX)
10PROGRESS BY PERFORMANCE INDICATORS
The approved Monitoring & Evaluation Plan includes a set of 15 key performance indicators,
which V-LEEP will track throughout its duration. A summary of relevant indicators and targets
towards which the project is actively tracking is below. The Annual Report for Y2 and subsequent
annual reports will visualize results per indicator in greater detail.
Y2
Y2 Q3 Actual Q4
Indicator Notes
Target Actual To- Plan
Date
Indicator 2: Number of Institutions with
Driven by engagement with MOIT/GDE, ERAV, and EVN-
increased capacity to conduct integrated,
NDLC that cannot be implemented until receipt of GVN
long-term energy analysis and forecasting 15 0 0 0
Activity Approval. Achievement of targets planned for Year
and incorporate models into policy design
3.
and decision making
Indicator 3: Number of policies,
regulations, or standards developed and
promoted which improve the enabling The achievement of this indicator for Year 2 is being driven
environment for RE/EE projects, including 2 0 0 0 by Direct Power Purchase Agreement efforts, which are
through the incorporation of strategies to now anticipated for Year 3.
finance, replicate and scale up these
projects
Indicator 8: Number of local project
developers who have gained skills to
Driven by project developer training on project financial
analyze RE resource assessments and 5 0 0 5
feasibility scheduled for Q4.
project documentation to meet financial
community standards
Driven by support to LASUCO, VITAS and other industrial
associations anticipated for delivery in Q4 and beyond. Will
Indicator 9: Number of facility managers
have had several fuel switching projects identified in walk
and / or ESCOs with increased capacity to
15 0 0 0 through audits of industry association members and
develop technical and financial feasible
shared with the companies through preliminary reporting;
fuel-switching projects.
will host two sessions on fuel switching projects in Q4;
Results not anticipated until Year 3.
Indicator 10: Number of economically
viable RE industrial projects developed Driven by support to CCBV and update from DCA. Results
2 0 0 0
and financed through PPP models, DCA, not anticipated until Year 3.
or with commercial banks
While driven in part by energy efficiency reporting tool
being delivered under Task 3.1, which cannot move
forward until after Project Approval and further buy-in from
Indicator 11: Number of industrial relevant MOIT/GDE counterparts has been obtained, the
facilities with increased awareness and Component team achieved progress against this indicator
0 12 12 5
improved understanding of how to report during Q3 through the certification of facility managers
energy efficiency compliance progress representing 12 different facilities as Certified
Measurement and Verification Professionals (CMVP); 5
more are anticipated during Q4 as a result of a re-
examination held on July 28.
Indicator 12: Number of economically Driven by support to industrial associations via Project
viable EE&C projects in key industries 10 0 0 0 Assistance Documents (PADs). Implementation in
developed, implemented, and financed progress but projects not anticipated until Year 3.
Indicator 14: Number of females who
Driven by data collected during Women Champions event
report increased self-efficacy at the
5 5 5 0 in April and women who participated in the CMVP training
conclusion of USG supported training /
in May.
programming
Indicator 15: Number of people receiving Q3 results driven by CMVP training. Q4 plan driven by
training in energy fields supported by USG 110 28 28 190 VITAS Workshop (80), CPA Solar Workshop (80), and
assistance CEM Training (30).
11CONSIDERATIONS AND CHALLENGES
V-LEEP continued working towards obtaining GVN Activity Approval during Q3. The team leading
this effort has maintained relationships with the necessary contacts at MOIT/GDE and MPI,
responding to requests for revising and updating the necessary approval application materials
and following-up regularly on the status to ensure the process is moving forward. The approval
materials are currently with the Office of the Government, pending final review and approval,
which V-LEEP anticipates in Q4. The following activities are therefore still at risk of being delayed
until Year 3, due to the delayed GVN Activity Approval:
Task 1.1
Activity 1: Final Characterization Report
Activity 3: Strategy White Paper
Activity 4: Final Optimization Report
Task 2.1
Activity 2: Renewable Energy Supply Industry (RESI) Roadmap
Activity 3: Alternative Procurement Mechanisms Assessment
Task 2.2
Activity 2: On-Grid RE Project Prospectus
Activity 4: Renewable Energy Promotion Center Concept Note
Task 3.1
Activity 1: Evaluate reporting requirements and frameworks for enhancing EE compliance.
In addition to the delayed GVN Activity Approval, activities, and support following the signing of
the technical assistance memorandum of understanding between USAID and Coca-Cola
Beverages Vietnam (CCBV) remain on hold due to ongoing leasing issues at CCBV’s offices in
HCMC.
12FY17 Q4 PROJECT FORECAST
V-LEEP anticipates the following activities for Q4 (July – September 2017).
Component 1: Low Emission Strategy Development for the Energy Sector
Under Component 1, V-LEEP will meet with additional provinces (e.g., Bến Tre), and synthesize
the results of the provincial resource assessment, PPGAP assessment, and consultations to
select a cluster of provinces for intensive support on RE planning and project streamlining. V-
LEEP will seek to complement its government-level support in Component 1 with project-level
support (e.g., investment readiness appraisal) in Components 2 and 3. Other Component 1
activities are dependent on timing of GVN Activity Approval and renewed consultations with the
appropriate government counterparts.
Component 2: Enhance Capacity and Improve Enabling Environment for RE
Development
Under Component 2, DPPA will continue to be V-LEEP’s highest priority. The team will finalize
the legal and institutional analysis, share it with ERAV, and hold stakeholder workshops to
maintain interest and momentum for this effort. In addition, the team will complete its detailed
analysis of international DPPA models and meet with ERAV and key stakeholders to assess their
application in Vietnam. In collaboration with CEIA, V-LEEP will seek to secure commitments for
several DPPA pilots for announcement in November at the APEC Leaders meeting in Hanoi.
V-LEEP will also begin work with CEIA to promote RE as a solution for captive power in industry,
particularly in corporate parks and industrial zones. This will begin with consultations with relevant
parties, including Saigon Hi-Tech Park and some of its current and prospective tenants.
V-LEEP and CPA have agreed to co-sponsor a workshop in Ho Chi Minh City (HCMC) in Q4
which will feature detailed case studies of successful solar PV projects in Thailand that illustrate
how these projects were successfully designed, permitted, financed, and commissioned. The
workshop will feature presentations and opportunities for Q&A by individuals directly involved with
these successful projects in Thailand (e.g., developers, government officials, the power systems
operator, the electricity company, investors, and lenders). These speakers will present the entire
process in detail from concept to commissioning, explaining the history, reviewing the various
steps, showing a detailed financial analysis, drawing out the various lessons, introducing key
steps and concepts, and helping the participants explore the relevance of these solutions to their
countries. The workshop will also feature deep dive presentations on key financial issues and
mechanisms that facilitate investment in grid-connected solar PV.
V-LEEP will continue its support to LASUCO in Q4, assisting with site selection and design as
well as the initiation of its formal pre-feasibility study for a 30 MW solar PV project.
An international Deloitte expert, Mr. Jake Delphia, will conduct a field visit to Vietnam in Q4 to
support VSSA and its members. Mr. Delphia will advise VSSA on its approach to participation in
an upcoming exercise with GVN and GIZ to assess the feed-in-tariff rate for the sugar industry.
Mr. Delphia’s trip will also explore structuring and promotion of a bundled loan guarantee by
USAID’s Development Credit Authority; and will help a leading sugar company (TTC) integrate
13clean energy into its decisions as it embarks on an industry-transforming merger and acquisition
process.
V-LEEP will conduct a rapid assessment of bio gasification technology and its application to
Vietnam, as a short, sprint exercise requested by MOIT/GDE. Finally, V-LEEP will release the
results of its forecasting study of EVN electricity tariffs.
Component 3: Increase Energy Efficiency Adoption and Compliance
V-LEEP will continue its work under PADs with the sugar industry (VSSA), textiles and apparel
industry (VITAS), and steel industry (VNSteel and VSA) to complete its structured programs of
support which include awareness building, benchmarking, selected walk-through audits, and
initial recommendations.
V-LEEP will provide mentoring to the 14 students who wish to re-take the CMVP® examination,
and will conduct the examination in Q4.
Cross-cutting Activities
During Q4, V-LEEP will continue cross-cutting gender efforts with the implementation of a Young
Women in Energy internship program for interested and eligible candidates during the months of
August and September 2017. In addition, the team will begin work on a Work Plan deliverable:
the Gender and Energy Snapshot of the status of women in energy in Vietnam. For all training
events, seminars, and workshops conducted during the fourth quarter, the project will include a
statement of encouragement for women’s participation and gender parity among participants
nominated in all invitations.
Upon receiving GVN Activity Approval, the project will ramp up both communications and M&E
reporting tools as well as arrange for an Approval Announcement ceremony.
14COOPERATION WITH OTHER USG AND DONOR PROGRAMS
USAID Vietnam Clean Energy Program
USAID VCEP supports the Ministry of Construction (MOC) in its implementation of the National
Green Growth Strategy and promotion of EE in all civic buildings.
Vietnam Central Province Green Growth Growth Action Plan
The province of Thanh Hoa, and USAID, will enhance the exchange of information, knowledge
and technology in the field of climate change, while jointly conducting surveys and collecting data
on agriculture, forestry and aquaculture; energy; industry and waste treatment. V-LEEP will
support Thanh Hoa in those areas of the GGAP, which our Work Plan covers.
USAID Clean Power Asia
Many of the activities under this regional initiative complement V-LEEP in the areas of RE
development. V-LEEP participated in coordination meetings with USAID’s RDMA and the
institutional contractor to ensure activity planning will be well coordinated.
Clean Energy Investment Accelerator
This National Renewable Energy Laboratory (NREL) initiative seeks to employ an innovative
Public Private Partnership (PPP) model to rapidly scale financial flows for meeting country-
established RE National Determined Contribution (NDC) goals. The initiative will do this by
addressing and resolving key barriers in the RE policy and finance sectors through country-
specific activities focused on supporting effective policy and regulatory structures, a robust
pipeline of “investment ready” clean energy projects, and RE purchasers and financiers that can
leverage and deploy public and private finance.
USAID Greening the Grid
This USAID and NREL initiative provides training and capacity building on issues related to grid
integration of intermittent renewable energy sources.
Climate Economic Analysis for Development, Investment and Resilience
Climate Economic Analysis for Development, Investment and Resilience (CEADIR) will accelerate
private sector investment and finance for NDCs by connecting leading private sector entities,
“early-mover” country governments, and donors around specific investment commitments,
models of catalytic financing, investment-ready projects, and examples of enabling environment
changes that are mobilizing private finance toward NDC priorities. Supporting this process in
early-mover countries will help build the regional market for climate-friendly private investment,
and encourage replication more broadly in the region.
Other International Donor Programs
V-LEEP actively coordinates with other donor programs in Vietnam that are concerned with
promoting RE development and industrial EE. As a tangible example of donor coordination, V-
15LEEP recently met with GIZ at its offices in Hanoi, and at a workshop that it hosted in the province
of An Giang. The discussions revealed GIZ has already worked with VSSA to develop robust
technical analysis of RE options for the industry. As a result of this discussion, V-LEEP refined its
approach under Component 2 to focus on financial analysis and development of financial
mechanisms that enable RE by the sugar industry.
The table below contains a representative summary of other donor-funded programs in Vietnam.
Local / Budget
Program Timeline Agency Beneficiary
Global ($M USD)
Energy Efficiency
Vietnam Clean Production and EE Project Local 2011 – 2016 MOIT Key industries, ESCOs
Processing zones/
Vietnam Resource EE Local 2.6 2013 – 2017 IFC
industrial zones
Low Carbon Transition in the EE Sector Local 11.5 2013 – 2017 DANIDA MOIT/SMEs
Vietnam Inclusive Innovation Project Local 58 2013 – 2018 World Bank Multiple
Promotion of EE Industrial Boiler Adoption and
Local 12 2015 – 2019 UNIDO MOIT
Operating Practices in Vietnam
Vietnam Energy Efficiency for Industrial Enterprises Local 200 2016 – 2021 World Bank Industrial enterprises
Renewable Energy
Clean Energy Financing Partnership Facility Global N/A 2007 – TBD ADB Multiple
Vietnamese private
Support for the Development of RE in Vietnam Local 3.4 2012 – 2015 GIZ
sector actors
World Bank/
Renewable Energy Development Project Local 202 2013 – 2021 RE developers
SECO
Support to the Up-Scaling of Wind Energy in Vietnam Local 7.8 2014 – 2018 GIZ MOIT
Renewable Energy Resource Mapping Local 1.5 2015 – 2017 World Bank MOIT
Pump Storage Hydropower Project (Pipeline) Local 800 2015 – 2017 World Bank MOIT/EVN
Renewable Energy and Energy Efficiency (4E) Local 3.4 2015 – 2017 GIZ MOIT
Vietnamese private
PDP South-East Asia Regional 0.45 2015 – 2017 GIZ
sector actors
Renewable Energy Development Facility Global 17.4 2017 – TBD KfW RE developers
Cross-cutting
Support Program to Respond to Climate Change Local 895.15 2009 – 2020 AFD, JICA Multiple
Nordic Development Fund Global N/A 2009 – TBD NDF Multiple
Global Environment Facility Global 3 2010 – 2014 Multiple Multiple
Vietnam Climate Change Global Loan Local 182 2011 – 2013 EIB MOF
Global Climate Partnership Fund Global N/A 2011 – TBD Multiple Vietinbank
Green Growth Strategy Facility Local 7.2 2013 – 2019 Belgium MPI
Green Climate Fund Global 1,846 2013 – TBD Multiple Multiple
Energy and Environment Partnership Program in the
Regional 10.19 2014 – 2018 Finland MFA Multiple
Mekong (Phase 2)
EU Multiannual Indicative Program Local 420 2014 – 2020 EU GDE
Implementation of Eco-Industrial Park Initiative for
Local 53 2014 – 2017 UNIDO MPI/IZs
Sustainable IZs in Vietnam
MONRE, MPI, MOF,
Partnership for Market Readiness Global 3.6 2016 – 2020 World Bank
MOIT, MOC
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