The European Union (EU) on October 9 announced a €430 million ($497.5 million) support package for the Bac Ai pumped storage hydropower plant project in Vietnam's central Khanh Hoa province - one of the country’s key initiatives under the Just Energy Transition Partnership (JETP).

The announcement was made within the framework of the second Global Gateway Forum, held in Brussels (Belgium) from October 9 to 10. Attending the announcement ceremony were Vietnam’s Deputy Prime Minister Bui Thanh Son, European Commissioner for Energy Jozef Síkela, along with representatives from participating countries and partners of the Forum.

The package is part of the Team Europe Initiatives, comprising the EU, its member states, and development finance institutions including the French Development Agency (AFD), the European Investment Bank (EIB), the Germany's KfW Development Bank (KfW), the Italian National Promotional Institution (CDP), and PROPARCO - the private sector investment arm of AFD.

European Commissioner for Energy Jozef Síkela emphasized that the Bac Ai project serves as a key foundation in the joint efforts of Vietnam and Europe to build a green, stable, and sustainable energy system while attracting private investment and fostering green growth. 

The Bac Ai pumped storage hydropower plant project is expected to enhance the stability of Vietnam’s national power grid, enable large-scale renewable energy development, and contribute to the country’s goals of carbon emission reduction and sustainable development.

For the 2021- 2027 period, the EU has committed to supporting Vietnam with at least €293 million ($338.9 million), while total contributions from European partners exceed €2.8 billion ($3.23 billion) for JETP. This investment will help advance green infrastructure, promote sustainable energy transition, and strengthen power connectivity across the ASEAN region.