Vietnam powers up energy savings plans in industry

Guidance on efficient use of electricity

Efforts to save energy

According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, energy security and sustainable energy development have always been one of the top concerns of the Vietnamese Government, and the MoIT is tasked with administering sufficient energy supplies for the country. Together with the exploitation of primary energy sources to meet economic and social energy demand, energy efficiency and conservation is one of the most effective solutions to reduce pressure in the exploitation, processing and supplies of different kinds of energies. It also helps preserve national energy resources, protect the environment and reduce greenhouse gas emissions, contributing to mitigating the impacts of global climate change.

A report by the Energy Saving and Sustainable Development Department under the MoIT showed that during the 2011-2015 period, the program achieved the targeted reduction of 5-8 percent of the country’s total energy consumption, equivalent to about 11-17 million tonnes of oil. Consumption rate by energy intensive industries in this period has declined gradually, with the steel industry saving 8.09 percent; the cement industry 6.33 percent and the textile industry 7.32 percent.

Deputy Director of the Energy Saving and Sustainable Development Department Trinh Quoc Vu said energy consumption in the industrial sector accounts for more than 47 percent of the country’s total energy consumption. “The potential for energy saving in the industrial sector in Vietnam is estimated at 20-30 percent, even up to 40 percent in some industries,” said Trinh Quoc Vu.

The energy consumption rate in the steel sector has gradually declined

Strategic solution

On March 2019, the Prime Minister approved the National target program on energy efficiency and conservation for the 2019-2030 period, which aims to reduce 5-7 percent and 8-10 percent of total national energy consumption for the 2019-2025 and the 2019-2030 period, respectively.

Accordingly, efficient energy usage should be practiced in all activities, and the rate of energy consumption needs to be reduced in economic sectors. Energy efficiency also needs to be improved in key energy users and energy-intensive industries, to achieve green growth and sustainable development.

The MoIT has also issued six Circulars on energy consumption in a number of sectors such as chemical, steel, beer, soft drinks, plastics and seafood processing. To help introduce businesses to energy saving, the National target program on energy efficiency and conservation has provided assistance on energy auditing and staff training to implement energy projects, and promoted typical energy-saving industries.

According to the Energy Saving and Sustainable Development Department, the industrial production sector will continue to be the key driver of energy efficiency in order to reduce the elastic energy ratio. Therefore, the MoIT will enhance the implementation of the Law on Energy Efficiency and Conservation in all areas with particular focus on energy-intensive and polluting industries. It will also push compulsory energy labeling and trash old electrical equipment.

By 2025, average energy consumption compared with the 2015-2018 period is targeted to drop 3-10 percent in the steel sector, more than 7 percent in chemical industries, 18-22.46 percent in plastics, more than 7.5 percent in cement, more than 5 percent in the garment textile sector, 3-6.88 percent in the processing of beer and soft drinks, and 8-15.8 percent in the paper industry. By 2025, 90 percent of the centrally governed provinces and cities are expected to approve energy efficiency and conservation programs. At least 50 provinces/cities will develop a network of energy saving agencies and Vietnam is expected to build a national energy data center.