Friday, 20/09/2024 | 00:02
Project activities
"Promoting investment market for energy efficiency in industrial sector in Vietnam" project
10:55 - 20/11/2018
Over the past 15 years, Vietnam's economy has grown at a relatively high rate compared to other countries in the region and the world. The process of industrialization, urbanization and living standard improvement led to an annual increase in energy and electricity demand of 11.5% and 13.07% respectively in the period 2006-2010. Due to its energy consumption trend, Vietnam has shifted from a net energy exporter to an energy importer. The economical and efficient use of energy has also become o
Since 2003, the Government of Vietnam has made great efforts to develop the institutional and legal framework to promote the economical and efficient use of energy leading to remarkable achievements. For example, energy efficiency activities have been implemented extensively in all sectors and social life. Regarding the industry, many energy efficiency solutions (such as energy management system, production system optimization, energy efficient equipment use) have been carried out in many industrial enterprises making contribution to reducing the energy intensity of many industrial sectors. In the period 2011-2015, the energy intensity of the steel industry decreased by 8.09%. This figure in the cement and textile industry was 6.33% and 7.32% respectively.
However, in fact, the majority of energy efficiency solutions which have been applied are management solutions and solutions requiring no or low investment.
Energy service companies (which are referred to as ESCOs) as financial intermediaries have become successful business models in the energy efficiency field. However, this new business model is in the early stage of development in Vietnam. According to statistics, a few among 14 ESCOs get a foothold in the market.
According to the survey of the Clean Production and Energy Efficiency Project of the World Bank and the Ministry of Industry and Trade, three barriers having hindered the development of ESCOs are (i) lack of appropriate financial support/incentives for the development and implementation of energy efficiency projects; (ii) industrial enterprises are less interested in investing in energy efficiency; (iii) lack of legal framework, especially for the contract implemented in accordance with the energy efficiency results (Energy performance contract - EPC).
The "Promoting investment market for energy efficiency in industrial sector in Vietnam" project is designed to contribute to removing identified barriers to promote the development of ESCOs and create favorable environment for the implementation of energy efficiency investment projects contributing to reducing greenhouse gas emissions and protecting the environment in Vietnam.
The project is implemented jointly by the Ministry of Industry and Trade of Vietnam and the Government of Korea. Namely, the Department of Energy efficiency and Sustainable Development is the project leader and the Korea International Cooperation Agency (KOICA) is responsible for managing the grant of $ 1.9 million on behalf of the Government of Korea.
The general objective of the project is to promote the economical and efficient use of energy in the industrial sector by promoting the development of the investment market for energy efficiency. Its specific objectives are as follows:
- To build capacity and raise awareness of ESCOs, energy conservation centers, state management agencies and other relevant partners on the implementation of energy efficiency investment projects through the ESCO business model;
- To contribute to concretizing the ESCO model through the implementation of pilot energy efficiency investment projects and policy recommendation making.
The project last from November 2017 to December 2019 and will be considered for renewal to meet all objectives and expected results.
The main results of the project are as follows:
Result 1: Awareness and capacity of ESCOs, energy conservation centers, state agencies and other relevant partners on the value and operation of the ESCO business chain are strengthened.
Result 2: Assessments of the economical and efficiency use of energy (current status of energy consumption, potential energy efficiency solutions in industrial enterprises) are implemented.
Result 3: The access to/ mobilization of financial resources for energy efficiency investment projects is ensured.
Expected outputs of the projects are as follows:
- Training program on the ESCO business model is developed;
- 10 state management officers involved in energy efficiency and 15 technical experts of ESCOs and energy conservation centers are trained in the ESCO business model;
- Workshop of trainees after the training course in Korea with 50 participants is organized in Vietnam;
- 10 industrial enterprises are selected and 10 energy audit reports are made;
- Workshop on knowledge sharing and energy audit results is organized;
- At least 03 energy efficiency investment projects are launched in accordance with the ESCO business model;
- Report on policy recommendations and lessons learned during the pilot phase is made;
- Workshop on knowledge sharing and results of the implementation of energy efficiency investment projects in accordance with the ESCO model is organized.
The project has three following components:
Component 1: Building capacity of developing energy efficiency investment projects in industry
Due to the fact that improving the capacity of state managers involved in energy efficiency and technical staff of ESCOs will help the management and implementation of energy efficiency activities meet international standards and promote energy efficiency activities in Vietnam, the project organized a training course in Korea and knowledge sharing workshop in Vietnam successfully beyond expectation.
The training course in Korea
The knowledge sharing workshop in Vietnam
Component 2: Identification of energy efficiency investment projects in industry (the Pilot Phase I)
The objective of this component is to assess the economical and efficiency use of energy (current status of energy consumption, potential energy efficiency solutions in industrial enterprises) through the conduction of energy audits in key companies.
The project signed cooperation agreements with ESCOs to carry out energy audits at 10 key industrial companies involved in different industrial sectors (such as cement (2), paper (1), electricity (1), food (1), steel (2), chemicals (1), textile (1), petrochemicals (1) - 10 companies in 8 industrial sectors).
The energy audits are scheduled from September 2019 to December 2018.
At present, with the cooperation of Korean experts and ESCOs in Vietnam, the project carried out energy audits at 3 key industrial companies (Bim Son Cement JSC, Da Nang Rubber JSC, An Hoa Paper JSC.
During the conduction of energy audits at key industrial companies, experts brought about many solutions to energy efficiency at industrial companies.
The project will continue to carry out energy audits at key industrial companies as scheduled.
The project will continue to carry out energy audits at key industrial companies as scheduled.
The energy audit at Bim Son Cement JSC
The energy audit at An Hoa Paper JSC
Component 3: Facilitation of the implementation of energy efficiency investment projects in industry (the Pilot Phase II).
In the Component 3, the project aims at helping industrial enterprises, commercial banks, ESCOs develop energy efficiency investment projects, access finance sources, evaluate and invest in energy efficiency projects.
At present, the project is keeping pace with the planned schedule.
By Office of Cleaner Production and Sustainable Production and Consumption
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Site Visit at Masan Tungsten Co., Ltd.16:40 - 15/08/2024
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Procedure for Implementation and Issuance of RSF Guarantees09:56 - 30/06/2024
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Challenges and Opportunities to promote energy efficiency market in Vietnam13:44 - 26/02/2024
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Investment Market for Energy Efficiency in Industrial Sector Promoted11:06 - 22/11/2018
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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
