The support package will focus on the Bac Ai Pumped Storage Hydropower Project, one of the key investment projects within the framework of the Just Energy Transition Partnership (JETP)…
Bac Ai Pumped Storage Hydropower Plant is a special-grade group A energy project.
The Department of Foreign Market Development (Ministry of Industry and Trade) said that within the framework of the working trip accompanying Deputy Prime Minister Bui Thanh Son to attend the second Global Gateway Forum 2025 (GGF2), on October 9, 2025 in Brussels, Belgium, Deputy Minister of Industry and Trade Nguyen Hoang Long attended the event announcing the European Union's (EU) support package worth 430 million euros for Vietnam to promote the Just Energy Transition Partnership (JETP).
According to a statement released by the European Commission at the Forum, the €430 million package supported by the EU and Team Europe focuses on the Bac Ai Pumped Storage Hydropower Project, one of the key investment projects within the JETP framework. The project will contribute to enhancing energy security, improving access to clean electricity, creating jobs for local communities, and enhancing the flexibility and stability of Vietnam's power system, thereby facilitating large-scale integration of renewable energy and contributing to Vietnam's carbon neutrality goals.
Ceremony to announce the 430 million euro JETP support package for Vietnam. Photo: MOIT.
Speaking at the launch, European Commission Commissioner for International Partnerships Jozef Síkela stressed that the Northern Ireland project is a “cornerstone” in the joint effort towards a green, reliable energy system that supports sustainable growth and attracts private investment. Through the Global Gateway, the EU “translates its commitment into concrete action for people, planet and shared prosperity”.
The support package is implemented according to a Team Europe approach, which includes the EU, its Member States and development finance institutions such as the French Development Agency (AFD), the European Investment Bank (EIB), the German Development Bank (KfW), the Italian National Development Promotion Agency (CDP), and the Promotion and Participation Company for Economic Cooperation (PROPARCO), the private sector investment arm of AFD.
On the same day, within the framework of attending GGF2, Deputy Minister Nguyen Hoang Long and ASEAN Energy Ministers attended the Announcement Ceremony of EU support for the ASEAN Power Grid (APG), emphasizing the importance of cooperation to enhance electricity connectivity in the region.
During the 2021–2027 period, the EU committed at least €293 million to Vietnam and the EU, EIB and Member States contributed more than €2,8 billion to JETP, thereby promoting green infrastructure, sustainable energy transition and electricity connectivity in the ASEAN region.
The Bac Ai Pumped Storage Hydropower Plant Project was approved by the Prime Minister in the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan 8).
This is Vietnam's first pumped storage hydropower project, a special-grade group A energy project.
Investor: Vietnam Electricity Group
Scale: 4 units, advanced equipment technology integrating 2 directions of turbine - pump, generator - engine, with a total installed capacity of 1.200MW
Representative of the investor managing and operating the project: Power Project Management Board 3
Construction site: Bac Ai district, Ninh Thuan province (now Khanh Hoa province)
Total investment: 21.101.468 million VND
Construction start: February 2025
Unit 1 will generate electricity in December 2029; Unit 2 in April 2030; Unit 3 in August 2030; Unit 4 in December 2030
Huyền Vy
Sources: VnEconomy