Vietnam Energy Efficiency
Vietnam’s energy industry is looking for innovative solutions to address energy and environmental issues. The goal is to create a foundation for Vietnam’s energy industry to develop sustainably while ensuring energy security to effectively serve the country’s socio-economic development, national defense, and security.
A recent Vietnam study showed that the level of energy waste in the industrial production sectors in Vietnam is still quite large. Specifically, energy efficiency improvements in the industries of cement, steel, porcelain, cold-chain, frozen, consumer goods can potentially save up over 20%. In the field of civil construction, transportation can potentially save up over 30% of the current power usage. A national plan for energy savings will be the cheapest and most workable way to ensure national energy security.
On March 13, 2019, the Prime Minister issued the Vietnam Energy Efficiency Program (VNEEP 3) in Decision No. 280/QD-TTG outlining the national master plan on energy efficiency, saving, and conservation of energy resources. Improving energy efficiency is a top priority for Vietnam, as it seeks to deal with a 10% annual growth rate for energy demand. VNEEP 3 expects to save 8-10% of national energy consumption, and a 6.0% power loss reduction through 2030.
Points laid out through 2025 to meet these goals:
1. Reducing power loss to below 6.5%; reducing the average energy consumption rate in industrial sectors.
2. 70% of industrial parks and 50% of industrial clusters have access to and apply energy-saving solutions.
3. 100% of key energy-consuming establishments will apply an energy management system; 100% of key transport enterprises will have programs to popularize their skills of controlling vehicles and technical solutions to saving energy.
4. 90% of cities and provinces develop and approve energy-saving and efficient programs.
Potential areas for U.S. firms in energy efficiency solutions include:
- Engineering, Design of Infrastructure
- Energy Efficiency Monitoring
- Battery Energy Storage Systems
- Smart Grid Solutions
- Cooling Storage Systems
- Eco Power Meters
- Intelligent Building Management System (Lighting Control, HVAC Control, Power Control, AV and Closed Circuit Camera Control)
- Waste Heat/Energy Recovery Systems
U.S. firms can play a leading role and supply many of the energy-saving solutions required by Vietnam. With the U.S. industry as a partner, Vietnam has the potential to ensure its energy security and develop a sustainable industrial sector with efficient, digitally enabled, ‘smart’ power that is the core of the development.
USAID’s Vietnam Urban Energy Security program identified three key components to support Vietnam in utilizing smart and energy efficiency in its industrial development:
- Support local authorities, to encourage the adoption of renewable energy and energy efficiency measures locally.
- Mobilize public and private sector investment for the deployment of advanced, distributed energy systems.
- Support the demonstration, commercialization, and replication of innovative technologies, practices, business, and financing models for advanced, distributed urban energy solutions.
These measures, alongside technical and financial assistance programs from organizations such as USTDA, USAID, U.S. International Development Finance Corporation, and EXIM bank can help U.S. companies to highlight their products and services in Vietnam.
For more information please contact Mr. Nam Tran, Commercial Specialist at Nam.Tran@trade.gov.