BAC AI (VIETNAM) PUMPED HYDRO STORAGE

Promoter – Financial Intermediary

VIETNAM ELECTRICITY

Location

• Vietnam

Description

The project concerns the construction of a pumped storage hydropower plant with a total capacity of 1 200 MW, comprising four Francis-type pump-turbines. The existing Tân Mỹ irrigation reservoir will serve as the lower reservoir, while a new upper reservoir, without natural inflow, will be built as part of the operation. The powerhouse and all associated waterways, including tunnels and caverns, will be located underground.

Objectives

The aim is to reduce fluctuations in electricity generation from intermittent renewable energy sources, such as photovoltaic and wind, and in demand, thereby optimising the operation of the power system. The project will also contribute to the Global Gateway, the European Union’s priorities in Viet Nam, and the Just Energy Transition Partnership (JETP) with Viet Nam. Under this partnership, the European Union and other parties support Viet Nam’s low-emission and climate-resilient development. The project will help accelerate a just transition and the decarbonisation of the electricity system, while creating new economic opportunities to support Viet Nam’s transition towards a net-zero future.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 80 million

Total cost (Approximate amount)

EUR 700 million

Environmental aspects

The project is expected to contribute to climate action and environmental sustainability objectives, in particular to climate mitigation. Compliance with the EIB's Environmental and Social Standards is being assessed during the appraisal phase, with particular attention to precautionary environmental protection, inclusive stakeholder engagement, biodiversity conservation, protection of vulnerable groups, and alignment with EU and international good practices on involuntary resettlement and environmental management.

Procurement

Procurement for the components co-financed by EIB and Kreditanstalt für Wiederaufbau (KfW) will follow the procedures and rules agreed under the Mutual Reliance Initiative signed between EIB and KfW.

Status

Under appraisal - 22/03/2023