Friday, 20/09/2024 | 05:38
Project activities
Provide a foundation to a new model for promoting energy efficiency in Vietnam
10:51 - 20/11/2018
Strengthening the energy security is an indispensable goal in the national energy policy.
On a long-term basis, energy security is primarily addressed through timely investment to provide energy for the economic development and sustainable development environment. Meanwhile, in the short run, energy security focuses on the availability of energy systems in response to sudden changes in the energy demand, supply and market equilibrium. Unguaranteed energy security means negative socio-economic impacts due to energy shortages, uncompetitive and instable energy prices. In order to overcome challenges of the energy security, Vietnam needs to implement the following solutions: (i) to ensure the sustainable supply of fossil fuel resources and (ii) to develop an energy efficiency infrastructure and diversify energy systems based on increasing renewable energy sources and efficient use of energy.
Implementing energy efficiency is considered one of key solutions to Vietnam's national energy security strategy due to: (1) long-term efficiency in the exploitation of traditional energy sources; (2) limited imbalance between energy supply and demand; (3) national energy resource stability guarantee.
Economical and efficient use of energy is an important part of the national energy policy and the Ministry of Industry and Trade is assigned by the Government to be in charge of carrying out energy efficiency in cooperation with other ministries and sectors. Over the years, energy efficiency solution implementation has made remarkable achievements playing an important role in managing the national energy policy in addition to increasing the competitiveness of each sector and each business. The following are some of key energy efficiency results:
Economical and efficient use of energy is an important part of the national energy policy and the Ministry of Industry and Trade is assigned by the Government to be in charge of carrying out energy efficiency in cooperation with other ministries and sectors. Over the years, energy efficiency solution implementation has made remarkable achievements playing an important role in managing the national energy policy in addition to increasing the competitiveness of each sector and each business. The following are some of key energy efficiency results:
- 5-8% of the total energy consumption which was equivalent to 11-17 million TOE in the whole country reduced in the 2011-2015 period compared to the energy demand forecast in the 2011-2020 period with the vision to 2030;
- Energy efficiency targets of some energy-intensive industrial sectors were completed, the application of energy efficient building standards were strengthened for large-scale and large energy-consuming buildings, energy efficiency solutions and technologies were promoted in the field of transportation;
- The implementation of the Law on Economical and efficient use of energy was strengthened in all economic and social life through the synchronous and thorough implementation of management and technical solutions in the field of economical and efficient use of energy, especially in energy-intensive and polluting industrial sectors and transportation and construction; the implementation of the mandatory energy labeling schedule was strengthened, outdated and large energy-consuming equipment were removed.
The Ministry of Industry and Trade has realized that it is important to carry out more energy efficiency activities in industrial sectors in order to reduce energy elasticity as expected so it is associating energy efficiency with the reduction and proactive response to climate change on the principle of mobilizing resources from international organizations, enterprises and communities to perform energy efficiency tasks.
The "Vietnam Energy Efficiency to Industrial Enterprises" (VEEIE) project, which is one of the most prominent models, has been implemented by the Ministry of Industry and Trade in cooperation with development partners since January 2018.
The project has been jointly carried out by (i) International Development Partner (World Bank); (ii) State management agency (Ministry of Industry and Trade); (iii) Financial Institutions (BIDV, Vietcombank) and (iv) Business community (industrial manufacturing companies and ESCOs) so as to improve energy efficiency of industrial manufacturing facilities. Approximately US$ 158 million has been mobilized mainly to support the renovation of production technology leading to increasing energy efficiency. Being deployed in the period of 5 years (2018-2022), the project will definitively make a breakthrough in energy efficiency in industrial manufacturing facilities contributing to the promotion of economical and efficient use of energy in industrial sectors.
With the goal of achieving a total energy reduction amount of about 0.93 million TOE per year and a total greenhouse gas emission reduction amount of 4.835 million tons of CO2 per year, the project is expected to bring about solutions to energy efficiency and climate change response in Vietnam industrial sectors.
With a view to pushing up the project implementation progress, the Energy Efficiency and Sustainable Development Department (Ministry of Industry), which is in charge of the project has actively cooperated with other partners in carrying out many specific activities.
The project kick off workshop was held in Hanoi in March 2018 with more than 100 participants from the World Bank, Ministry of Industry and Trade, Ministry of Finance, Departments of Industry and Trade, associations, industrial enterprises and commercial banks. Next, many propaganda activities on the project were implemented. As a result, after being deployed for nearly 10 months, the project has drawn attraction of many industrial enterprises including ones involved in sugar, cement, construction material and paper production. They have been having the project's experts carry out necessary technical assessments.
The project stakeholders has cooperated with each other effectively, especially in solving problems arising in the implementation of the project. The Ministry of Industry and Trade, the World Bank, BIDV and Vietcombank have actively dealt with financial issues in order to create favorable conditions for factories and enterprises to participate in the Project.
Regarding industrial enterprises which are customers of BIDV and Vietcombank, recheck and loan source change are considered are two out of short-term solutions to increase the financial attractiveness of the project to industrial enterprises. Tra Vinh Sugar Manufacturing Factory (in Tra Vinh Province), Tuy Hoa Sugar Manufacturing Factory (in Phu Yen Province) are expected to be the first industrial enterprises to receive funding from the project.
The project's experts conducted onsite assessment at Tuy Hoa Sugar JSC
The project's experts conducted onsite assessment at Tra Vinh Sugar JSC
With a view to obtaining its objective, the project issues technical requirements as well as methods to prevent conflict of interest during its implementation as follows:
- State-owned and private-owned enterprises that do not have cross-ownership with BIDV or Vietcombank are entitled to have access to the project.
- Energy efficiency projects which are entitled to be funded by the Project include: (i) replacing inefficient industrial technologies with energy-saving technologies such as industrial boilers, furnaces and high performance heat exchanger systems; (ii) recovery and utilization of waste gas and heat; (iii) installation of high performance electrical and mechanical equipment including engines, lighting equipment, pumps, heat and ventilation equipment; (iv) optimizing industrial systems to reduce energy use; (v) use of renewable energy to save electricity or fuel in industrial enterprises (cogeneration system, solar water heating system ...); (vi) other projects approved by the World Bank.
- Energy efficiency projects need to demonstrate a minimum energy efficiency of 20%. However, lower energy saving rates may also be acceptable for certain areas with modern energy technology. At the same time, projects must ensure an internal rate of return of at least 10%.
The VEEIE Project introduction workshop for BIDV's branches and enterprises
With the expected number of participants of 25 industrial enterprises, the Vietnam Energy Efficiency to Industrial Enterprises Project is expected to make a breakthrough in the energy efficiency market in Vietnam from credit, technology, management to training and human resource development. The cooperation mechanism between state management agencies, credit institutions, international development partners, industrial enterprises and ESCOs in the project may become a new and effective energy efficiency deployment model which aims to make energy saving criterion become one of the sustainable development criteria in Vietnam.
By Office of Cleaner Production and Sustainable Production and Consumption
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"Energy Manager" training course opening11:04 - 22/11/2018
EVENTS
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25/06/2024Training course on "Procedure for the implementation and issuance of RSF guarantees"
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23/02/2024
Seminar "Roundtable on Vietnam's energy efficiency: Challenges & opportunities, how to promote EE market"
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25 - 26/5/2023
Technical training workshop on identifying and expertising energy efficiency investment projects and ESCO for commercial banks
