One of the major barriers for the development of solar power in Vietnam is that local bankers and lenders lack knowledge and expertise for appraising solar power projects, thus limiting access to finance for many large-scale solar projects. On June 13-14, USAID’s Vietnam Low Emission Energy Program (V-LEEP) collaborated with USAID Clean Power Asia to organize a workshop on the fundamentals of financing solar power projects in Vietnam. The workshop attracted 50 participants from 10 large commercial banks including Vietcombank, BIDV, SHB, and Techcombank as well as solar power project investors and developers. On June 15, USAID’s team led a similar workshop with Vietinbank, a leading commercial bank, for more than 200 participants from its 50 branches nationwide. Vietinbank is currently reviewing 10 solar project applications which, if built, would have total installed capacity of approximately 600MW. Both workshops covered technical and financial due diligence of solar power projects, risk assessment and mitigation strategy, project financing structure, and available insurance products as well as case studies to understand a project’s ability to pay back debt.

So What? USAID is working with local banks to understand and evaluate the potential risks and rewards associated with constructing solar power projects. Sound financial information and experience will expand access to local finance for solar project developers and mobilize domestic resources to transform Vietnam’s energy sector.