In Vietnam, fossil fuel (mostly coal) is the prominent source of energy. To overcome financial and regulatory hurdles, renewable energy projects require extra funding that carbon trading provides.
With this project, two hydropower plants have been installed. One is located on the Dak Pone River, with an installed capacity of 14MW, and the other is located on the Dak Ne River, with an installed capacity of 1.6MW. The estimated annual gross power generation is 69,100MWh. By providing this rural region with reliable and sustainable energy, the project activity displaces diesel generators and wood-fired heating and lighting. This creates better indoor/outdoor air quality and reduces respiratory and eye diseases.
Additionally, the project owner has funded the construction of irrigation canals, bridges and roads to support sustainable development. The regional economy has benefited from these investments in infrastructure. The project owner has also funded the construction of a local school, which is providing benefits to local children.
Project impacts and benefits:
- The project has generated hydropower plant operation/ maintenance jobs for local people.
- 24 operational staff have benefited from six months of capacity building in the form of technical training.
- The construction of a new transmission line is reducing electricity loss and increasing the electricity supply in the region.
- Former low-quality infrastructure systems in the region have improved, e.g. by upgrading roads, and by building bridges and irrigation canals.
- A local school has been built.
- The project has provided local farmers with support to broaden their agricultural activities to make them more sustainable (e.g. by implementing aquaculture, which reduces the need for logging for farmland).
- The project has reduced the need for wood for heating, cooking, and lighting, thus allowing the forest to regenerate and improving soil conditions, hydrology and biodiversity.
- The project has improved regional air quality by reducing the need for diesel generators and wood fires.
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