The project’s purpose is to generate annually around 75 gigawatthours hydroelectricity from a clean and renewable energy source and supply it to the national electricity grid replacing mainly fossil fuel sources. Current electricity in Vietnam is generated mainly by firing coal (17 %), oil (4%) and gas (37 %).
The project activity included the construction of a small dam, intake tunnels, pressurised wells, penstocks and a power house with tree 6 MW turbine and power generator units. The project’s installed capacity is 18 MW. The project activity is estimated to generate some 280 000 tonnes of carbon dioxide reductions during the seven year crediting period.
According to NEFCO’s Senior Representative in Asia, Kimmo Siira the project activity makes positive contributions to the sustainable development of the local area and the host country.
“In recent years, Vietnam, especially the northern part of the Central region of Vietnam, has suffered electricity shortages as a consequence of a rapidly increasing demand and insufficient supply, with negative impacts on economic growth as well as daily lives of people. This clean energy project will contribute towards meeting the demand gap”, says Kimmo Siira.
In addition, the project will contribute positively on the economic well-being of the Nghe An province by facilitating its industrialisation process and supporting economic development of the local village. The majority of local residents living in the project area are from ethnic minorities which usually live in less favourable living conditions than the majority population in Vietnam.
“The NeCF is pleased to make its first post-2012 contract for the NEFCO Carbon Fund in the renewable energy sector. The fund has signed 4 contracts to date, and is currently evaluating a number of CDM opportunities covering post Kyoto and post Kyoto periods in India, China, South-East Asia and Southern Africa”, says Project Manager Maija Saijonmaa from NEFCO.
For further information, please contact:
Maija Saijonmaa, Project Manager, Carbon Finance and Funds, +358 50 344 5151
Kimmo Siira, Senior Representative in Asia, +65 815 732 10
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045
Information for Editors :
NEFCO is an international finance institution owned by the five Nordic countries. NEFCO finances investments and projects in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects of interests to the Nordic region. Since 2004, it has been the Fund Manager of the Baltic Sea Region Testing Ground Facility (TGF) and in April 2008, it established the NEFCO Carbon Fund (NeCF).
In total, NEFCO's Carbon Finance and Funds team has approximately €121.60 million of assets under management (AUM) and financial resources of up to €135 million The CFF investor community now includes the five Nordic governments, Germany, and 10 private companies. The NeCF is a public-private partnership that is directed at both private investors who have obligations under the EU Emission Trading Scheme (EU ETS) and sovereign investors who have greenhouse gas emission targets under the Kyoto Protocol. The NeCF buys carbon credits from UN-approved emission reduction projects around the world on behalf of its investors. Investors can use these credits towards their commitments.
The fund places its capital in projects developed under the Kyoto Protocol's Joint Implementation (JI) and Clean Development Mechanism (CDM). The NeCF will invest in NEFCO's existing countries of operation, as well as in China, India and Southeast Asia. The fund may selectively consider projects in other parts of the world, too, through the Nordic Finance Group and the Nordic network.
For further information on NeCF, please visit http://www.nefco.org/cff
