Washington D.C (VNA) – Vietnam and the US reiteratedtheir commitments to deepening cooperation in energy security during theirsecond energy security dialogue in Washington D.C on April 12.

The Vietnamese and USdelegations emphasised the centrality of energy security to sustained economicdevelopment in light of rising energy demands.

Both sides affirmed theimportance of improving the transparency and predictability of Vietnam’s energysector investment climate through private sector-led development and regulatoryreforms.

US Assistant Secretaryof State for Energy Resources (ENR) Francis R. Fannon Fannon offered continuedtechnical assistance to support efforts to enhance the regulatory capacity ofthe Electricity Regulatory Authority of Vietnam (ERAV). 

Specifically, ENR will supportERAV with developing a competitive power market; smart grid and demand responseprogrammes; and the regulatory tools necessary for competitive wholesale andretail electricity markets.

ENR will continue towork closely with partners in the Vietnamese Ministry of Industry and Trade(MoIT) and the Directorate for Standards, Metrology, and Quality (STOMAQ) toincrease energy efficiency in the region through technical engagements, andwill seek ASEAN endorsement for voluntary best practices.
The two sides further recognisedthe urgency for improving energy efficiency, particularly given that airconditioning comprises up to 50 percent of peak electricity demand in ASEANcountries and has a significant impact on energy security.

MoIT Deputy MinisterDang Hoang An said the energy security dialogue mechanism between his ministryand the US Department of State was established two years ago, with the first meetingheld in Hanoi in March 2018.

This is the first energysecurity dialogue mechanism between ministries of two countries, he said, notingthat it has created conditions for Vietnamese and US businesses to establishrelations and accelerate joint projects.

Through the dialogue,the two sides shared the views that energy is a potential sector that wouldhelp deepen the bilateral comprehensive ties, for interests of the twocountries, and for peace and stability in the region and the world at large.

The official suggestedVietnam and the US set up more official dialogue mechanisms in other spheres inorder to push ahead with the implementation of specific cooperation projectsbetween businesses of the two countries.

Regarding renewableenergy, Vietnam representatives discussed their pilot programme for DirectPower Purchase Agreements (DPPAs) that allows US corporations with 100 percentrenewable energy targets to directly purchase electricity generated fromrenewable energy sources for their production facilities in Vietnam.

In addition, the US Tradeand Development Agency (USTDA) demonstrated its support for enhancing Vietnam’sstorage capacity by funding a joint Electricity Vietnam (EVN)-GE Power study onthe use of advanced energy storage technologies to reduce power shortages inSouthern Vietnam. During the Dialogue, EVN and GE power signed an agreement tocarry out that study.

In the sphere ofliquefied national gas (LNG), both delegations highlighted the US-Vietnam LNGworkshop in Ho Chi Minh City in December 2018, which promoted securing stableLNG supplies for power generation and expediting investments in the LNG sector.The two sides discussed AES Corporation’s proposal to invest in the Son My 2LNG-to-power project.

The US Agency for InternationalDevelopment (USAID) highlighted its support for cooperating with MoIT on powersector reforms, increasing Vietnam’s renewable energy and storage capacity,promoting natural gas imports, and enhancing energy efficiency.

The US and Vietnam delegationscommitted to continued cooperation in all of the areas discussed in the dialogueand to review progress at the third Vietnam-US Energy Security Dialogue to beheld in Vietnam in 2020.-VNA