LEGAL FRAMEWORK ON ENERGY EFFICIENCY & CONSERVATION IN VIETNAM. Presented by: Cu Huy Quang Officer of EECO - MOIT

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1 LEGAL FRAMEWORK ON ENERGY EFFICIENCY & CONSERVATION IN VIETNAM Presented by: Cu Huy Quang Officer of EECO - MOIT

2 Table of content Energy situation in Vietnam Policies on Energy conservation in Vietnam The Vietnam Energy Efficiency and Conservation Program (VNEEP)

3 Table of content Energy situation in Vietnam Policies on Energy conservation in Vietnam The Vietnam Energy Efficiency and Conservation Program (VNEEP)

4 KTOE Energy demand Demand likely to be tripled in the next 10 years Electricity demand increases 14% per year. Fig 1.1 Final energy demand - source (ref :9) Agriculture Industry Transportation Commercial and services Residential and others total

5 Energy Outlook by Sector 1. Energy demand will increase fast in Light Manufacturing Industry that will be leading the economic growth. 2. Transportation sector will be relatively slow as motorbike will be peaking out. 3. Residential sector continues to use Non-commercial energy in large quantity > > >25 Mtoe Mtoe Mtoe % % % % % % Agriculture, F&F Industry (Light) Industry (Heavy) Transportation Commercials & Service Residentials Total Commercial Energy

6 Final Energy Demand by Source /05 25/15 25/05 MTOE MTOE MTOE % % % % % % C oal O il(excl.lp G ) LP G N aturalg as Electricity C om m ercialenergy N on-c om m ercial Total Million TOE C oal O il NaturalG as Power Non-C Power Ratio Power Ratio 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

7 Table of content Energy situation in Vietnam Policies on Energy conservation in Vietnam The Vietnam Energy Efficiency and Conservation Program (VNEEP)

8 Policy for Energy Efficiency and Conservation Law on Energy saving and Efficiency (No. 50/2010/QH12): Enforced since 1st January 2011 Sets forth provisions on EE&C; policies and measures to promote EE&C; rights and obligations of business facilities, households and individual in EE&C; and the responsibility of various government agencies in the implementation of Law. Provides regulations: (1) Mandatory energy labels; (2) Mandatory sectoral energy efficiency standards for appliances, equipment, technology and products; (3) EE requirements in building codes and construction practices; (4) Requirements for key utilities to offer EE plans;

9 Policy for Energy Efficiency and Conservation Decree and Decision recently issued that provide detail guidance on the implementation of provisions set forth in the Law on EE&C: Decree No. 21/2011/ND-CP issued by Government in March 29, 2011 Guidelines on EE&C Law Implementation. In accordance with this Decree designated energy users (including designated industrial facilities) are required to apply the energy management system that will be implemented as follows: To announce targets, policies, solutions/measures on EE improvement

10 Policy for Energy Efficiency and Conservation To develop yearly plan and five -year plan on EE&C To nominate an energy manager in accordance with the criteria mentioned in Clause 1, Article 35 of The Law To carry out regular check-ups, follow-ups on energy consumption demand of machinery and equipment of the whole chain of production

11 Policy for Energy Efficiency and Conservation To carry out energy audit to identify EE opportunities and measures. To organize periodic training and coaching courses for employees on energy efficiency and conservation. To have a reward and punishment system to promote energy efficiency and conservation in the entity.

12 Policy for Energy Efficiency and Conservation Decree No. 73/2011/NĐ-CP issued by Government in August 24, Regulations on the penalties for the administrative violations in EE&C Decision No. 51/2011/QĐ-TTg issued by the Prime Minister Approval of the List of Facilities and Equipment Required to Comply with Regulations on Energy Labeling and Minimum Energy Performance Standards. Category of residential appliances, including: Fluorescent tube lamps, Fluorescent compact lamps, magnetic and electronic Ballasts of Fluorescent lamps, Air-cons, Refrigerators, Washing machines for household use, Rice cookers, electric Fans, TV : Mandatory Energy Label Application from 2013

13 Policy for Energy Efficiency and Conservation Category of appliances used in offices and in Commerce, including: Photocopy machines, Computer LCDs, Printers : Elimination of Products & Imports which are below the Minimum Energy Performance Level defined by authorized organizations; commercial Cold storages : Mandatory Energy Label Application from Category of Industrial equipment, including: Three phase Distribution Transformers, electric Motors : Mandatory Energy Label Application from Category of Transportation vehicle, Including: Passenger Cars (bellow 7 seats) : Mandatory Energy Label Application from 2015.

14 Policy for Energy Efficiency and Conservation Decision No. 68/2011/QĐ-TTg issued by the Prime Minister on the List of Energy Efficient Facilities and Equipment to be equipped in the offices and organizations which using state budget. Circular No. 07/2012/TT-BCT issued by the MOIT on Energy Labelling for Energy Use Facilities and Equipment. Circular No. 09/2012/TT-BCT issued by the MOIT on Responsibilities of Energy Use Facilities in EEC Law Implementation and Enforcement.

15 Policy for Energy Efficiency and Conservation Circular No. 39/2011/TT-BCT on training content, program, authority levels of issuance, and acknowledgement of energy management, energy audit certificates. Circular No. 142/2007/TTLT-BTC-BCT issued by the MOIT and the MOF on Guide the management and use of funds career implementation of the National Target Program on energy saving and efficiency

31) (Articles 22, 23, 24, 25) (Điều 26, 27, 28) (Articles 37, 38,

16 Subjects regulated by EEC Law (Articles 9, 10, 11, 12, 13, 14) (Articles15, 16, 17, 18) (Articles 19, 20, 21) (Articles 29, 30, 31) (Articles 22, 23, 24, 25) (Điều 26, 27, 28) (Articles 37, 38, 39, 40) (Articles 32, 33, 34, 35, 36) Key energy using entities (KEUE)

17 Identification of the KEUEs (Article 6, Decree No. 21/2011/NĐ-CP) 1) Industrial and agricultural production establishments and transport units which annually consume energy of a total of one thousand tons of oil equivalent (1,000 TOE) or higher per year; 2) Construction works used as offices and houses; educational, medical, entertainment, physical training and sports establishments; hotels, supermarkets, restaurants and shops which annually consume energy of a total of five hundred tons of oil equivalent (500 TOE) or higher per year.

Measures applied to KEUEs (Article 33, Law on EE&C) 1.

to various respected fields of jobs, the KEUE shall

energy manager in accordance with Article 35 of this

18 Measures applied to KEUEs (Article 33, Law on EE&C) 1. In addition to those obligations provided in the Law to various respected fields of jobs, the KEUE shall perform the following obligations: To appoint an energy manager in accordance with Article 35 of this Law To perform compulsory energy audit once every 3 years

Measures applied to KEUEs (Article 33, Law on EE&C) To apply Energy Management Model according to the guidance of State competent authorities; To develop and implement annual and 5-year plans for

19 Measures applied to KEUEs (Article 33, Law on EE&C) To apply Energy Management Model according to the guidance of State competent authorities; To develop and implement annual and 5-year plans for energy efficiency and conservation in conformity with their business and production plans; to report results of the implementation of energy efficiency and conservation plans to the State competent authorities at the locality.

20 Measures applied to KEUEs Energy audit (Article 34 Law on EE&C) Enterprise can carry out audit by itself or Having a team of certified energy auditors Hire energy audit organizations Energy audit organizations must meet the following conditions Having appropriate technical equipment for energy audit. Being established under law

21 Planning for EE&C and Reporting on the implementation results (Circular No. 09/2012/TT-BCT) KEUEs perform the planning for EE&C and reporting on the implementation results in Internet, through electronic portal of the National Energy Database System (NEDS); Each KEUE will have its address and ID given by NEDS for access, and work with its files.

22 Table of content Energy situation in Vietnam Policies on Energy conservation in Vietnam The Vietnam Energy Efficiency and Conservation Program (VNEEP)

VNEEP Implementation Arrangement Program Steering Committee including

MoF, Justice, and the Union of Vietnam Science and Technology Associations)

Central Cities: To prepare policies for monitoring Energy saving and

23 VNEEP Implementation Arrangement Program Steering Committee including Representatives of the Ministries: MoIT, MoC, MoT, MoET, MoCI, MoST, MPI, MoF, Justice, and the Union of Vietnam Science and Technology Associations) Energy Efficiency & Conservation Office People Committees of Provinces and Central Cities: To prepare policies for monitoring Energy saving and efficiency at local level; To collaborate with NPSC for implementing projects in localities.

24 VNEEP Implementation Arrangement Programme Branched Offices: Established at selected provinces and central cities Supporting bases: Laboratories for checking energy efficiency of electric devices. Certificated Energy Auditing Agencies. Programme components: 11 Projects located in 6 component groups.

25 VNEEP Objectives Objective: To advance Energy Efficiency and Energy Savings in energy intensive priority sectors: Industry Commercial, Office and Residential Buildings Transportation Saving of 3%-5% during period Saving of 5%-8% during period

26 VNEEP Specific Targets Energy audits conducted in 300 large enterprises and 12 power plants 300 energy audits conducted in SMEs and commercial buildings 1024 designated enterprises have energy management system energy managers and 200 energy auditors get certification 100% of new buildings complies with EEBC by end of 2015

27 Saving Potential Steel : 20-25% Cement : 10-40% Buildings : 10-15% Transport : 25-28% Public Lighting : 20-30%

28 KEY Results Overall Target Total energy saving estimated for period is KTOE 4900 corresponding to 3.4%. In 2011 electric intensity per GPD is This is significant reduce compare with 2008: 2.02; 2009: 2.42 and 2010: 2.0 Power savings achieved by 1.43% for year 2011

29 KEY Results Overall Target Household: 3000 biogas cellars, 100,000 solar water heaters, 46 million compact light bulbs per year. Industry: Energy management system at 250 designated enterprises. Certified 450 energy managers and 80 energy auditors EE labelling 147 products Energy audit conducted for 243 enterprises, EE measures implemented for 50 enterprises. Buildings: implement green buildings model.

30 VNEEP Donors Donors ADB Danida EC Support (date -current or very recent) [approx budget] Technical assistance energy efficiency in the cement and steel industry (2011/12) Technical assistance for implementing VNEEP - surveys, training, financing mechanisms ( ) Targeted programme budget support to the VNEEP ( ) [USD 15 million] Support to cleaner production including technical assistance and investment support (50% of budget) ( ) [USD 10 million] Mainstreaming energy efficiency through business innovations for SMEs ( )

31 VNEEP Donors Finland JICA KFW Capacity building with a focus on energy auditing ( ) Energy master plan ( ) / Private sector investment finance loans for new equipment for industries / Support to climate change adaptation and mitigation ( ) / Capacity building on energy management training ( ) Funding for economic infrastructure, climate change including energy

32 VNEEP Donors SDC Green credit line - support for cleaner production investment ( ) [USD 5 million] UNDP/GEF PECSME energy efficiency in SMEs ( ) [USD 29 million] / Energy efficiency standards and labeling (2010+) [USD 0.6 million] /Phasing out of incandescent lamps ( ) [USD 3million] /Planned support in building codes, UNIDO/ GEF labeling/standards, capacity building Promoting industrial energy efficiency through system optimization and energy management standards, pilot projects in rubber, textile, pulp and paper and food and beverage. ( ) [USD 4.5 million]

33 VNEEP Donors WB Viet Nam demand side management and energy efficiency, industry and buildings ( ) Cleaner production and energy efficiency project action plans for key sectors, development of energy service providers, capacity building in programme management ( ) IFC Support to VNEEP for developing building codes for energy efficiency in large buildings. Energy efficiency and cleaner production financing; IFC ( ) [USD 2.3 million] Support to energy efficiency building code (EEBC) to be finalized by December 2012.

34 For your attention

REGULATIONS ON ENERGY EFFICIENCY & CONSERVATION OF VIETNAM

Exportinitiative Energieeffizienz REGULATIONS ON ENERGY EFFICIENCY & CONSERVATION OF VIETNAM Presented by: Cu Huy Quang Officer of EECO - MOIT www.efficiency-from-germany.info CONTENT Regulation on Energy