Smart Grids for Renewable Energy and Energy Efficiency

Project description

Title: Smart Grids for Renewable Energy and Energy Efficiency
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Viet Nam
Lead executing agency: Ministry of Industry and Trade (MoIT)
Overall term: 2017 to 2021

Windparkbetriebskontrolle und -überwachung in Vietnam, @ GIZ


Viet Nam is one of the fastest growing countries in Asia. The economic development is restrained by shortages in power supply. Increasing power generation, grid capacity and energy efficiency are necessary to solve this problem. Hence the Vietnamese government is planning to increase production capacities from approximately 39,000 MW in 2015 to 60,000 in 2020 and 1,290,500 MW in 2030. The required investment volume is estimated to reach 125 billion Euros, of which one quarter is designated to the modernization and expansion of the power grids.

Grid expansion and its digitization and thus its transition to an intelligent power supply system (Smart Grid) is to be conducted to reduce grid related supply shortages and to exploit efficiency potentials. At the end of 2012 the Smart Grid Road Map (SGRM) has been introduced for this matter.

So far the introduced measures essentially served to automatize the grid operation and to increase the reliability by decreasing the time needed for error discovery and elimination, thus updating the partly outdated power grids to the latest automatization standards.

The project aims to increase the amount of power that comes from renewable energy sources. Digital technologies will be used to make power grids more flexible and expand their capacities. This will make them fit for the integration of more volatile renewable energy sources. The approach is an environmentally friendly alternative compared to the current plans for improving electricity supplies in Viet Nam, which would carry along a higher degree of carbon emission.


Vietnamese power grid experts are utilizing improved capacities for the development of an intelligent power supply system (Smart Grid) which enhances energy efficiency (EE) and facilitates the use of renewable energies.

Electrical work at a wind farm in Viet Nam, @GIZ


The project focuses on three main Action Areas that promote the participatory development of smart grid solutions, namely:

  1. Legal and regulatory framework
    The objective of this action area is to provide the Electricity Regulatory Authority of Viet Nam (ERAV) with information for improving the regulatory framework for a Smart Grid, which facilitates Renewable Energies and increases Energy Efficiency. Experts who update the Smart Grid Road Map (SGRM) and shape respective regulatory requirements receive support through training. Technically this means understanding the advantages of internationally proven legal and regulatory requirements and adjusting them to the conditions in Viet Nam.
  2. Human capacity development
    One of the project’s aims is to establish a Smart Grid knowledge hub, which helps Vietnamese experts and stakeholders to exchange knowledge about the development and management of Smart Grids, state-of-the-art technologies and international approaches. The exchanges also aim to promote awareness about Smart Grids between the government, policy makers, business, research institutes and civil society.
  3. Technology cooperation
    Through activities in this action area, power sector experts will be presented with and exchange on available technology solutions for an intelligent power supply system, which facilitates the integration of Renewable Energies and improves Energy Efficiency. The experts will learn more about the technologies that are available on an international level and will get insights into the benefits these technologies can have for the Vietnamese power sector. This will happen by evaluating the technologies theoretically, developing and testing pilot schemes and then testing and evaluating system configurations which integrate different technologies.
Switchgear of the Sub Station at a wind farm in Bac Lieu province, Viet Nam @GIZ


The project will not only help improving the efficiency, reliability, and sustainability of electricity services, but also support the increased integration of renewable energies into the existing power grid.

The regulatory framework for Smart Grids is expected to be improved, expert knowledge on Smart Grids will be enhanced and Smart Grid solutions will be introduced, which include an advanced metering infrastructure and demand side management.

The project will contribute to the development of a flexible and responsive, yet, sustainable power system that satisfies the rapidly increasing energy demand of the Vietnamese economy and population.     

Additional information