Illustrative photo (Source: Internet)
Hanoi (VNA) – The Prime Minister has ratified a draft content of an agreement between Vietnam and Germany’s KfW Development Bank for the first phase of a project on smart grid for electricity transmission in Vietnam.

The 65 million Euro (73.8 million USD) 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 on electricity providers for consumers.

In late 2012, the PM approved a master plan on developing smart grids and many projects in the area have already been carried out effectively.

In 2014, the US Trade and Development Agency (USTDA) provided 700,000 USD in non-refundable aid to the pilot application of Vietnam’s Smart Grid project, that will help Vietnamese energy companies efficiently manage the use of electricity during peak hours, and optimise power distribution.

In the same year, the World Bank (WB) approved a 500-million-USD loan to help increase the capacity, efficiency and reliability of the electricity grid in Vietnam’s key economic areas.-VNA