The financing will support the Bác Ái project, a strategic infrastructure project for renewable energy storage, strengthening the resilience of the energy system and supporting Vietnam’s path towards climate neutrality.
Supporting Vietnam’s energy transition and promoting greater integration of renewable energy sources into the national grid. This is the objective of approximately €80 million in financing from the resources of the Italian Climate Fund, managed by Cassa Depositi e Prestiti (CDP) on behalf of the Italian Ministry of the Environment and Energy Security (MASE), for Vietnam’s national power utility, Vietnam Electricity (EVN).
The resources will contribute to the development of the Bác Ái project, the country’s first pumped-storage hydropower facility, with an installed capacity of 1,200 MW. The infrastructure will enable large-scale electricity storage, strengthening the resilience of Vietnam’s energy system and facilitating more effective integration of renewable energy sources. The initiative will also help reduce greenhouse gas emissions, improve the country’s energy mix and support Vietnam’s path towards climate neutrality.
Bác Ái is part of Power Development Plan 8, the country’s national energy development strategy, and is recognised as a flagship project under the European Union’s Global Gateway programme. The project is also included in the Just Energy Transition Partnership (JETP), the international partnership aimed at accelerating Vietnam’s energy transition through coordinated support from governments, international financial institutions and investors.
The initiative is part of a broader international financing programme involving major development finance institutions, including Agence Française de Développement (AFD), the European Investment Bank (EIB), the Japan International Cooperation Agency (JICA), Kreditanstalt für Wiederaufbau (KfW) and Proparco. Together with the Italian Climate Fund, these institutions will provide approximately €480 million in total financing to support one of the most significant strategic energy infrastructure projects currently under development in the country.