Vietnam promotes program on electrical energy efficiency and conservation

13:27 | 14/07/2018 Industry

According to the Ministry of Industry and Trade (MoIT), the implementation of the national program on electrical energy efficiency has achieved the target of 3.4 pct and 5.65 pct of total energy consumption conservation during the 2006-2015 period and 2011-2015 period, equivalent to about 4.5 million tonnes and 11.261 million tonnes of oil (TOE), respectively.

At the workshop on national program on electrical energy efficiency and conservation during the 2019-2030 period - Photo: tietkiemnangluong

Based on this success, the MoIT has developed the 2019-2030 program with a goal of saving 8 to 10 pct of the total nationwide energy consumption, equivalent to 50 to 60 million TOE.

The national program on electrical energy efficiency and conservation during the 2019-2030 period consists of four component projects with a number of specific objectives: a reduction of 8 pct to 10 pct of total commercial energy consumption nationwide, a reduction of at least 8% in energy use by small and medium enterprises. The total capital needs for implementation of the program is estimated at VND1.8 trillion.

The contents of the draft program for 2019-2030 is composed of four component projects: the project on promoting dissemination of information, knowledge and guidance on how to practice and use energy saving equipment and technologies; the project on improving the institutional and market development of high energy efficiency products and technologies and energy saving services; the project on promoting the program at the construction works; and the project on promoting energy efficiency in the transport sector.

The MoIT recommends incentive mechanisms for key energy users as well as small and medium enterprises to help them improve their capacity for energy use. One such mechanism is to setting up funds to promote energy efficiency for small and medium enterprises and building a sustainable energy market. This mechanism will not increase public spending, but aims to attract more participation from private and foreign sectors, and increase public-private partnerships (PPP) in the energy sector.

Vietnam’s economy continues to grow at a high rate compared to other countries in the region and around the world. The country's electricity demands will increase by an average of 8.7 pct. Therefore, finding a solution for the full supply of energy needed for economic development is an important and urgent issue. Surveys have showed that Vietnam has many opportunities for energy saving in all areas, from industrial production and trade to services.

However, in the past time, the enforcement of regulations on energy efficiency has been ineffective. Many enterprises have not actually fulfilled the requirements in accordance with the regulations issued. In addition, funding from the state budget for the program is often late and insufficient, while the subjects within the program are very broad and varied.

The national program on electrical energy efficiency and conservation during the 2019-2030 period shows Vietnam’s commitment to reducing greenhouse gas emissions by 8 pct a year by 2030 in order to mitigate the effects of climate change, and the figure could increase to 25 pct if there was greater international support.

According to energy consultants from the World Bank, energy use is often ineffective due to penalties being too light. This is the common situation of many countries. The program is not effectively implemented in state-run offices and companies which lack strict supervision.

To achieve the program’s target, almost all provinces and cities issued their own instructions on promoting the implementation of efficient energy usage and set up local steering committees for the project. Relevant ministries and sectors needed to complete the legal framework for the practice of efficient energy usage during this year. Major provinces and cities should actively develop plans for energy efficiency and conservation, and insert the program into their socio-economic development strategy.

Theo NDO