Project to be undertaken with financial assistance from Germany's KfW Development Bank.
The Prime Minister has ratified the draft content of an agreement between Vietnam and Germany’s KfW Development Bank for the first phase of a project developing a smart grid for electricity transmission in Vietnam.
The €65 million ($73.8 million) project will be signed by Deputy Minister of Finance Truong Chi Trung and KfW representatives.
Smart grid networks have become popular in developed countries worldwide due to their outstanding advantages such as reliability, cost savings and energy independence, allowing more choices of electricity providers for consumers.
In late 2012 the Prime Minister approved a master plan on developing smart grids and many projects in the field have already been carried out effectively.
In 2014 the US Trade and Development Agency provided $700,000 in non-refundable aid for the pilot application of the Vietnam’s Smart Grid project, which will help Vietnamese energy companies efficiently manage the use of electricity during peak hours and optimize power distribution.
In the same year the World Bank approved a $500 million loan to help increase the capacity, efficiency and reliability of the electricity grid in Vietnam’s key economic areas.