Monday, 10/03/2025 | 04:58
Project activities
Capacity Building on ESCO Business for Energy Service Company
14:28 - 05/03/2025
On the morning of March 5, 2025, the training course “Capacity Building on ESCO Business for Energy Service Company” was held as part of VSUEE Project.
This training course belongs to Component 2: Technical Assistance of the Vietnam Scaling Up Energy Efficiency Project (VSUEE), is scheduled to take place in Hanoi from March 5 to March 7, and will be conducted in Ho Chi Minh City from March 18 to March 20, 2025.
Ms. Nguyen Thu Phuong, VSUEE Project Coordinator, delivered the opening speech at the training course.
The industrial sector currently accounts for over 50% of total national energy consumption. Therefore, implementing energy efficiency solutions not only helps businesses reduce production costs and enhance competitiveness but also significantly contributes to sustainable development goals and greenhouse gas emissions reduction. However, one of the biggest challenges enterprises face when implementing EE projects is their limited capacity to identify, evaluate, implement, and finance these projects.
To address these challenges and optimize energy use, the Energy Service Company (ESCO) model has emerged as an essential solution, driving energy efficiency in key energy-intensive industries. ESCOs not only provide advanced technological solutions but also manage the entire process—from consultation, design, investment, implementation, operation, and maintenance—ensuring businesses significantly reduce energy costs without requiring large upfront capital investments. With a cost-recovery mechanism based on actual energy savings, the ESCO model enhances business competitiveness while also acting as a catalyst for transitioning toward a green economy. Expanding and promoting this model brings both economic benefits and plays a crucial role in achieving sustainability goals, reducing greenhouse gas emissions, and protecting the environment.
In Vietnam, the ESCO model is seen as a potential solution for promoting energy efficiency, but it is still in its early development stage and faces several obstacles. Firstly, supporting mechanisms and policies for ESCOs remain limited, lacking incentives for businesses to participate. Additionally, concerns over risks and skepticism about the practical effectiveness of ESCOs have prevented many enterprises from adopting the model, particularly given Vietnam’s limited implementation experience. Furthermore, there is a shortage of specialized human resources in the energy service sector, while advanced energy management technologies are not yet widely applied. The lack of transparent and reliable measurement and verification tools also reduces the model’s attractiveness. Overcoming these challenges requires close collaboration among regulatory agencies, financial institutions, and businesses to establish a robust ESCO ecosystem, thereby expanding its application and optimizing its economic benefits.
Mr. Mai Van Huyen, Director of Green Development Centre (Project's Consultant) introduces the training course.
Recognizing the importance of scaling up and professionalizing the ESCO model, within the framework of the Vietnam Scaling Up Energy Efficiency Project (VSUEE)—funded by the Green Climate Fund (GCF)—the Ministry of Industry and Trade (MOIT), in collaboration with the World Bank, has organized the “Enhancing ESCO Business Capacity for Energy Service Providers” training course. This initiative aims to support industrial enterprises, energy service companies (ESCOs), and energy efficiency service providers (EESPs) in enhancing their technical skills and expertise in the field.
Experts and lecturers from the Project's consulting unit and Hanoi University of Science and Technology conduct specialized training modules throughout the course.
The training course will focus on key topics, including: (i) Enhancing capacity in identifying and developing energy efficiency projects; (ii) Energy auditing and financial analysis for energy efficiency projects; (iii) Introduction and application of the Measurement, Reporting, and Verification (MRV) system; (iv) Marketing and business strategies for ESCOs and energy equipment suppliers (EESPs).
Participants in the training include representatives from industrial and trade promotion centers, energy service providers, and energy equipment suppliers.
Component 2 of the VSUEE Project focuses on technical assistance to enhance the capacity of industrial enterprises, commercial banks, and other stakeholders in the energy efficiency sector. Key Objectives:
This component plays a pivotal role in establishing a solid foundation for the energy efficiency market, helping businesses optimize costs, enhance competitiveness, and drive sustainable development. |
VSUEE Project Management Board.
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Capacity Building on ESCO Business for Energy Service Company14:28 - 05/03/2025
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