Attending the signing ceremony, representing AFD was Mr. Julien Seillan – Director of AFD in Vietnam.

Representing EVN were Mr. Nguyen Xuan Nam – Vice President; Ms. Do Thi Loat – Head of the Supervisory Board; along with leaders of specialized departments and the Power Project Management Board 3 (EVNPMB3).

The Bac Ai Pumped-Storage Hydropower project has an installed capacity of 1,200MW (comprising 4 units of 300MW each), with a total investment cost of VND 21,101 billion. This project is included in the list of power generation projects with investment policies approved by the Prime Minister. EVN has appointed EVNPMB3 as the owner's representative.

The project is of great significance to the national power system, especially as many renewable energy plants (solar and wind power) are being integrated into the grid. Its primary mission is to provide peak-shaving power for the system's load profile, helping to reduce the gap and flatten the load curve by mobilizing pumping capacity during off-peak hours and generating electricity during peak hours.

Mr. Julien Seillan – Director of AFD in Vietnam, delivering speech

At the signing ceremony, Mr. Julien Seillan, AFD Director in Vietnam, shared that the Bac Ai Pumped-Storage Hydropower Plant is a pivotal energy project for Vietnam’s energy transition process. Vietnam is recognized as one of the world's most dynamic economies, which brings the significant challenge of doubling its power generation capacity by 2030 while simultaneously meeting climate commitments, particularly the goal of achieving carbon neutrality by 2050.

Mr. Julien Seillan also highly commended Vietnam’s achievements in deploying renewable energy projects, despite the inherent intermittency of these energy sources. Consequently, there is a crucial requirement for stable and storable energy reserves. “The Bac Ai Pumped-Storage Hydropower Plant is the answer to that challenge. With a capacity of 1,200MW, this plant will ensure that every kilowatt of green electricity produced meets the demand exactly when it peaks,” affirmed the AFD Director.

Furthermore, he expressed that this is a symbolic project representing the support from international organizations—including the European Union (EU), AFD, KfW, EIB, JICA, CDP, and Proparco—for Vietnam. It demonstrates that close cooperation is the cornerstone for implementing such a large-scale and important project.

Mr. Nguyen Xuan Nam – Vice President of EVN, delivering speech.

Speaking at the signing ceremony, EVN Vice President Nguyen Xuan Nam emphasized that EVN identifies its role as a core enterprise in upgrading infrastructure, modernizing the power system, and promoting investment in clean technology. He further affirmed that the EUR 76 million loan from AFD, along with the support from the European Union (EU) through the ETEF program (Energy Transition Efficiency Facility between European donors and EVN), clearly reflects the spirit of the Just Energy Transition Partnership (JETP) that Vietnam is implementing with the international community.

The EVN leader highly appreciated AFD's companionship throughout the project's preparation and implementation, including technical cooperation support and the sharing of expertise in technical fields, safety, environmental and social standards, and legal frameworks. He expressed confidence that this signing ceremony would open a phase of deeper and broader cooperation between EVN and AFD, especially as Vietnam accelerates its climate commitments and faces an increasing need for power infrastructure improvement.

Representatives of AFD and EVN perform signing ceremony under delegates’ witness

The Bac Ai Pumped-Storage Hydropower (PSH) project is the first of its kind in Vietnam. It plays a pivotal role in ensuring the security of the power supply, enhancing system flexibility, and creating favorable conditions for integrating an increasing share of renewable energy sources in accordance with the Revised Power Development Plan VIII (PDP8).

Upon completion, the Bac Ai PSHP Plant will serve as a strategic facility to support dispatching, energy storage, and balancing the national power system. The project not only brings technical value but also contributes directly to the power sector's emission reduction goals, aligning with the Vietnamese Government's commitment to achieving carbon neutrality by 2050.

Translator: Vân Ly