The National Program on Economical and Efficient Use of Energy for the period of 2019-2030 (VNEEP3) especially emphasizes the important role of localities in striving to achieve the goal of energy efficiency (EE) in the corresponding EE Plan of each locality. Based on all factors of energy use and energy saving potential according to the local socio-economic development scenario, the Ministry of Industry and Trade will allocate energy efficiency goals to each locality, associated with the responsibility of the head and the role of the local Sate management agencies to proactively find solutions for implementation, ensuring successful implementation.

The locality actively implements its activities

          With the goal of mobilizing all resources to promote economical and efficient use of energy in all areas of the economy, on March 13, 2019, the Prime Minister issued Decision No. 280/ Decision-TTg approving the National Program on Economical and Efficient Use of Energy for the period 2019-2030 (VNEEP3).

            Accordingly, the Program is divided into two phases: Period 2019-2025: Achieve energy savings of 5-7% of the total national energy consumption; In the period of 2025 - 2030: Achieve an energy saving rate of 8-10% of the total energy consumption of the country. These are well-thought-out goals for the whole stage under the normal development scenario.

            To achieve the above goal, VNEEP3 has come up with comprehensive and synchronous solutions, including: i) Building, consolidating and strongly enforcing legal regulations on economical and efficient use of energy; (ii) Establishing mechanism on incentives, encouragement, technical and financial supports to promote the application of energy-saving solutions in all aspects of the economy and society as a whole.

            Unlike the 2006-2015 period, when implementing the National Program on Economical and Efficient Use of Energy (VNEEP1 and VNEEP2), the energy efficiency target of VNEEP3 was included in the EE Plan of each locality. Based on the current state of energy consumption, forecasting energy demand according to socio-economic development scenarios of each locality, feasibility of implementing energy saving technology solutions, energy saving potentials in various fields, the Ministry Industry and Trade will allocate energy conservation goals to each locality, assign responsibilities to local leaders and local Sate management agency to proactively find solutions to implement and ensure the implementation of the energy efficiency goals that have been determined.

            By giving initiative to localities, it means that localities will play an important role and determine the success or failure of VNEEP3. Each locality will actively allocate resources and coordinate with the Office of the Steering Committee for Energy Efficiency - the Ministry of Industry and Trade (Leading and coordinating agency of the Program) to organize the implementation of activities on the basis of the Plans approved by People's Committees of Cities/Provinces.

            In addition, the Departments of Industry and Trade (DOIT) of the provinces and centrally-run cities should act as the focal agency to organize the implementation of the contents of their EE Plans in order to ensure the completion according to the Plans. At the same time, DOITs assume the prime responsibility for coordinating with local State management agencies to guide, inspect and supervise the implementation of regulations on energy efficiency at energy-using facilities, especially key energy users, periodically report the results of the implementation of the local Plan in accordance with the local EE targets and local contribution to the VNEEP3 program goals.

Localities spend 5 times more than the central budget to deploy VNEEP3

            Immediately after VNEEP3 was approved, with the guidance and coordination of the Office of the Steering Committee for Energy Efficiency - Ministry of Industry and Trade, localities followed the Prime Minister's Decision No. 280/QD-TTg to organize the implementation of the program activities. By the end of 2021, most localities have completed the formulation and promulgation of the Plan on Economical and Efficient Use of Energy for the period 2020-2025 and the Annual Implementation Plan.

            Through reports from localities, it can be seen that VNEEP3's activities in localities currently focus on the following main content areas:

• Consulting, proposing solutions and providing technical support on energy efficiency for local energy users through energy audit activities, supporting in building energy management system, developing energy management system. green energy usage model etc…

• Communicating to raise awareness of enterprises, households and communities about economical and efficient use of energy.

• Organizing conferences and seminars to disseminate information and guide mechanisms, policies and compliance with regulations on management and efficient use of energy; Organizing trade fairs and exhibitions on energy efficiency equipment and technology etc.

• Organizing training for improvement of management capacity and technology on energy conservation to enterprises, production facilities, construction works.

            On December 10, 2021, the Department of Energy Efficiency and Sustainable Development, MOIT cooperated with the Hanoi Department of Industry and Trade to organize the National Energy Efficiency Conference in 2021 in the form of offline and online. At this conference, from incomplete statistics sent by localities (some localities have not updated the data in time), the Office of the Steering Committee for Energy Efficiency - MOIT has made preliminary assessments on the results of VNEEP3 implementation in 2021 in localities across the country as follows: 91 facilities have been audited for energy, 17 facilities have been built with energy management models, 11 facilities have received investment support for high-efficiency energy equipment, 12 buildings were evaluated for energy efficiency, 04 buildings were simulated with energy management systems, 45 enterprises were recognized for criteria for using Green Energy, deployed 289 projects and models of economical and efficient use of energy in lighting, using renewable energy, etc.

            In particular, the implementation budget in 2021 from the central budget is 30 billion VND, while the local budget is 147.2 billion VND, that means nearly 5 times higher than the funding from the central budget. From other capital sources is 25 billion VND.

            Also according to the preliminary assessment results of 17 provinces/cities, the total energy saved in 2021 is 284.1kTOE. In which, Hanoi city is the locality with the highest energy saving with 122.4 kTOE. Followed by Ho Chi Minh city, Ba Ria - Vung Tau, Dong Thap, Gia Lai, Long An, Bac Lieu, Ben Tre etc.

            Energy saving rates according to calculations in 2021 of some localities:

            Also through the reports of the localities, besides some initial results were achieved after approved VNEEP3, in general EE activities in localities still faced many difficulties due to unstable resources and the impact of the Covid-19 pandemic over the past two years. Some localities have not yet been allocated funds to implement the approved Energy Efficiency and Economical Use Plan.

            As for enterprises, the investment in equipment, technology improvement, application of science-technology and energy saving solutions that require large funds has not been focused on. The coordination between agencies in some localities has not been synchronized, especially the  evaluation, inspection to energy-using facilities, the market for energy-saving products, etc. has not really achieved the desired effect.

Solutions to strengthen VNEEP3 activities in localities

            From the above data and analysis, it can be affirmed that the role of the locality is increasingly important and decisive in ensuring the successful implementation of the objectives/targets of VNEEP3. Therefore in the coming time, in order for localities to be more proactive in completing their assigned tasks, the VNEEP3 Coordinating Office needs to come up with the most effective solutions to ensure necessary resources for program implementation.

            Specific groups of solutions are as follows:

1) Completing the policy, mechanism:

• Review, amend, supplement and complete the system of legal documents (priority to amend Decree No. 21/2011/ND-CP before 2023), technical guidelines, technical standards and regulations on economical and efficient use of energy.

• Develop and issue documents guiding the management and use of state budget funds for the National Program on economical and efficient use of energy (including funding from VNEEP3 and local budgets) ).

• Build a capacity assessment system, accredit and announce the energy audit organizations that meet statutory standards; Develop mechanisms, policies and legal regulations for the business model of energy efficiency services (ESCO);

• Develop a manual to guide the inspection, monitoring and evaluation of the implementation of legal regulations on energy consumption norms for energy-intensive industries.

• Develop regulations on inspecting, monitoring, urging, guiding the implementation and evaluation of the implementing results of legal regulations on economical and efficient use of energy in localities.

2) Capacity building training:

• Training and strengthening professional capacity for officials of focal agencies on economical and efficient use of energy in the locality;

• Develop a capacity building program for the network of Centers for Industrial Promotion and Consultancy for Industrial Development, public organizations and other organizations related to the field of economical and efficient use of energy at locality.

• Training and certification of energy auditors and energy managers; training and capacity building to implement energy saving projects and solutions for enterprises.

3) Community communication:

• Develop a unified communication program and plan within the framework of VNEEP3 to raise awareness and responsibility for energy saving of the community, business and society.

• Diversify forms of propaganda on economical and efficient use of energy; Using tools/utilities on smart phones and mobile devices to increase public propaganda.

• Organize conferences and seminars on economical and efficient use of energy in inter-regional scope, combined with other appropriate forms such as technology trade fairs etc.

            The successful implementation of the energy efficiency target approved by the Prime Minister is forecasted to face many difficulties and challenges in terms of investment capital, technical human resources, especially the participation of localities and the business community. Therefore, the Office of the Steering Committee for Energy Efficiency - Ministry of Industry and Trade and local authorities need to analyze the specific situation in order to identify fundamental solutions, prioritized content and focus resources to synchronously implement the contents of VNEEP3.

Ho Nga – Industry and Trade Magazine

& Vietnam Energy Conservation and Energy Efficiency Association

References:

1- Decision No. 280/QD-TTg dated March 13, 2019 of the Prime Minister approving the National Program on Economical and Efficient Use of Energy for the period of 2019 - 2030;

2- Report on the implementation results of the National Program on Economical and Efficient Use of Energy in 2021, Orientation in 2022 (Hanoi, December 10^th, 2021, Department of Energy Efficiency and Sustainable Development, Ministry of Industry and Trade).