The one stop power solutions

12:11 | 01/04/2017 Energy

(VEN) - Over the past few years, Electricity of Vietnam (EVN) has been providing business firms with the services of its energy service companies (ESCO). Vietnam Economic News’ Dinh Dung spoke with Tran Viet Nguyen, deputy director of the EVN Sales Department, about the energy efficient solutions on offer.  

How do ESCO solutions benefit enterprises?

Energy service companies are providers of energy solutions. They target enterprises using different types of energy and relatively complicated technology and equipment. Enterprises can buy consulting services from ESCO companies while totally funding equipment and technology, or buy package solutions from ESCO companies, or work with ESCO companies to co-finance equipment and technology.

Enterprises are advised to buy package solutions because they don’t have to finance initial investment to apply the solutions. ESCO companies do the survey, design, construction, installation, maintenance and technology transfer. These package solutions have been tested. ESCO companies and businesses share the solutions’ benefits.

Apart from helping enterprises reduce costs, ESCO solutions promote the image of users as environmentally friendly enterprises and therefore help improve their competitiveness.

Although the ESCO model is relatively new in Vietnam, it not only benefits state organizations but also businesses, in particular, and the economy in general.

What are the achievements and difficulties for EVN in providing ESCO solutions?

EVN has been providing ESCO solutions since 2014. We have so far signed and implemented seven ESCO contracts to mostly provide industrial-scale solar energy water heater solutions for businesses in the southern part of the country.

We have set a target for each of our member corporations to implement at least 10 ESCO projects. However, we have encountered certain difficulties in customer approach, finding cooperation partners and capital.

The EVN’s power corporations are preparing resources to implement more and better ESCO projects in the coming years. We hope that with our good preparations in 2016, we will implement more ESCO projects this year.

How can the ESCO model be expanded?

Personally I think the media plays an important role in promoting the ESCO model. Capital access and development of strong ESCO solution providers are also very important. Capital has always been the biggest difficulty faced by ESCO companies, as most of them are small to medium in size.

We are looking forward to the issuance of government promotion policies for ESCO companies so they can develop and expand their market.

Dinh Dung