Viet Nam Energy Partnership Group Technical Working Group ...

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Viet Nam Energy Partnership Group Technical Working Group 2 Energy Efficiency Report of the 3 rd Meeting Date: Tuesday, April 16 th , 2019 Location: MOIT office, meeting room 101, 25 Ngo Quyen, Hanoi Time: 2.00-5.00pm Objectives: Follow-up on VEPG High-Level Meeting 2018 Discussion of focus topic “Launch and Implementation of VNEEP 3” Discussion of focus topics “Energy Efficiency in Buildings” and “EE Benchmarking” Updates on further TWG topics, progress of Policy Recommendations and member activities Chair and Co-Chair: Mr. Trnh Quốc Vũ, Deputy Director General of Energy Efficiency and Sustainable Development Department, Ministry of Industry and Trade (MOIT) Ms. Akiko Fujii, Deputy Country Director - UNDP Viet Nam Agreed Conclusions and Actions: (See next page) Agenda: See Annex 1 Participants: See Annex 2 Minutes: See Annex 3 Inputs: See Annex 4 - Presentations

Transcript of Viet Nam Energy Partnership Group Technical Working Group ...

Viet Nam Energy Partnership Group

Technical Working Group 2 – Energy Efficiency

Report of the 3rd Meeting

Date: Tuesday, April 16th, 2019

Location: MOIT office, meeting room 101, 25 Ngo Quyen, Hanoi

Time: 2.00-5.00pm

Objectives:

• Follow-up on VEPG High-Level Meeting 2018 • Discussion of focus topic “Launch and Implementation of VNEEP 3” • Discussion of focus topics “Energy Efficiency in Buildings” and “EE Benchmarking” • Updates on further TWG topics, progress of Policy Recommendations and member

activities

Chair and Co-Chair:

• Mr. Trịnh Quốc Vũ, Deputy Director General of Energy Efficiency and Sustainable Development Department, Ministry of Industry and Trade (MOIT)

• Ms. Akiko Fujii, Deputy Country Director - UNDP Viet Nam

Agreed Conclusions and Actions: (See next page)

Agenda: See Annex 1

Participants: See Annex 2

Minutes: See Annex 3

Inputs: See Annex 4 - Presentations

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Agreed Conclusions and Actions:

Conclusion/ Decision Action

• The Chair/Co-Chair thanked all TWG 2 participants for joining and for the very active and constructive participation in the meeting.

• Ms. Nguyen Thi Lam Giang, Director General of DEESD/MOIT announced the official launch of the VNEEP 3 which was recently approved by the Prime Minister on 13 March 2019 and discussed the implementation of the newly approved VNEEP 3.

• The Chair and Co-Chair called for the mobilization of resources and technical support from Development Partners and further sector stakeholders to develop and implement the VNEEP 3 Programme.

Chair/ Co-Chair

All TWG members

• The Secretariat gave an update on the HLM 2018 and presented a monitoring tool that allows the Chair and Co-Chair and the Secretariat to monitor progress in implementing the VEPG (TWG 2) Policy Recommendations and report to the VEPG Steering Committee.

• The next meeting of the TWG 2 will be used to capture feedback and inputs from TWG members for the progress monitoring. The Secretariat will prepare this discussion session as an input for the VEPG Progress Report.

Secretariat

• TWG 2 members discussed and commented on the USAID presentation on Benchmarking Energy Efficiency, UNDP/MOC presentation on Energy Efficiency in Commercial and Residential Buildings Project (EECB) and GIZ presentation on Energy Efficiency in Buildings.

• The Chair thanked the participants for these inputs. The presentations and comments from TWG 2 members delivered very relevant information and provided guidance to EREA/MOIT for its further work on these topics and for the implementation of the TWG 2 Policy Recommendations.

• The inputs will also allow the Chair/Co-Chair and the Secretariat to prepare the further work of the TWG 2 related to the further support of implementing the Policy Recommendations.

• The Secretariat will disseminate all presentations after the meeting.

Chair/Co-Chair

Secretariat

• The Co-Chair, Ms. Akiko Fujii, UNDP Deputy Country Director announced that she will finish her term at the UNDP Vietnam and leave for her new duty station in July. She reaffirmed UNDP’s commitment to continue their co-chairmanship of the TWG 2 on Energy Efficiency, UNDP will nominate her successor in due course.

• The Chair and all TWG members expressed their sincere gratitude for Ms. Akiko Fuji’s commitment and continuos support for the work of the TWG 2 and VEPG in General in her roal as the Co-Chair over the last 1 ½ years.

• The VEPG Steering Committee will discuss the succession of the Co-Chair role during its next meeting tentatively in May, 2019. In case VEPG member institutions are interested in co-chairing a TWG they are invited to contact the Secretariat.

Chairs, Secretariat

Steering Committee

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ANNEX 1 – Agenda

13:30-14:00 Registration

14.00-14.10 Opening remarks, overview of the agenda

Ms. Nguyễn Thị Lâm Giang, Director General of DEESD/MOIT: Opening remarks and address to Development Partners on the launch of VNEEP 3

Mr. Trịnh Quốc Vũ (Chair)

Ms. Akiko Fujii (Co-Chair)

14.10-14.20 Follow-up on the 2018 High-Level Meeting

Secretariat: Brief report on the HLM and further process of monitoring/ implementing the TWG Policy Recommendations

14.20-15.20 Implementing VNEEP 3 – Next Steps Towards an EE Roadmap

DEESD/MOIT: Update on final VNEEP as approved by the Prime Minister

DEESD/MOIT: VNEEP 3 implementation – What’s next?

Plenary: Q&A and discussion on priority activities for implementing VNEEP 3 as well as further Development Partner/sector stakeholder support

15:20-15:30 Tea break and Networking

15.30-16:05 Focus topic: Benchmarking Energy Efficiency

DEESD/MOIT: Introduction to benchmarking needs as part of VNEEP 3

USAID: Benchmarking EE for the Sugar and Cement industry

16.05-16:50 Focus topic: Energy Efficiency in Buildings

Chair/Co-Chair: Introduction to the topic field

UNDP/MOC: Energy Efficiency in Commercial and Residential Buildings Project (EECB)

GIZ: Energy Efficiency in Buildings Project (PEEB)

Plenary: Q&A and discussion on challenges and solutions in the topic field

16.50-17.00 Conclusions, agreements, closing remarks

Mr. Trịnh Quốc Vũ (Chair)

Ms. Akiko Fujii (Co-Chair)

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ANNEX 2 Participants:

Co-Chairs

• Mr. Trịnh Quốc Vũ, Deputy Director General of Energy Efficiency and Sustainable Development Department (DEESD), Ministry of Industry and Trade (MOIT)

• Ms. Akiko Fujii, Deputy Country Director - UNDP Viet Nam

Participants • Mr. Jakob Stenby Lundsager, Embassy of Denmark • Mr. Trần Hồng Việt, Embassy of Denmark • Mr. Koen Duchateau, EU Delegation • Ms. Trần Thùy Dương, EU Delegation • Mr. Mathieu Kretz, French Embassy • Mr. Đỗ Đức Tưởng, USAID Vietnam • Ms. Nguyễn Thanh Hà, USAID Vietnam Low Emission Energy Program (V-LEEP) • Mr. Jay Malette, United Nations Development Programme (UNDP) • Ms. Vũ Thị Thu Hằng, United Nations Development Programme (UNDP) • Ms. Lê Thị Thanh Thảo, United Nation Industrial Development Organization (UNIDO) • Ms. Hoàng Thị Diệu Linh, United Nations Industrial Development Organization

(UNIDO) • Ms. Phạm Đức Tùng, French Development (AFD) • Mr. Vũ Quang Đăng, Asian Development Bank (ADB) • Mr. Trần Văn Giải Phóng SECO Switzerland • Mr. Chu Bá Thi, World Bank • Mr. Jakob Kuhs, GIZ • Mr. Ali Kaupp, GIZ • Mr. Daniel Plankermann, KFW • Ms. Lê Thị Ngọc Bích, UK Embassy • Mr. Mã Khải Hiền, UK’s ASEAN Low Carbon Energy Programme • Mr. William Hudson, UK’s ASEAN Low Carbon Energy Programme • Ms. Nguyễn Thị Lâm Giang, DEESD, MOIT • Mr. Hoàng Văn Tâm, DEESD, MOIT • Mr. Lê Bá Việt Bách, DEESD, MOIT • Mr. Đặng Hải Dũng, DEESD, MOIT • Mr. Lại Đức Tuấn, DEESD, MOIT • Mr. Nguyễn Quang Huy, DEESD, MOIT • Mr. Trần Đỗ Bảo Trung, MONRE • Mr. Henri Wasnick, Institute of Energy • Mr. Yannick Millet, UNDP/MOC Project • Mr. Koji Shimizu, JICA • Mr. Bùi Thành Trung, JICA • Ms. Lee Soyoung, KOICA • Ms. Phạm Mỹ Linh, KOICA • Ms. Park Yoon A, KOICA • Mr. Duc Nguyen Vuong, Ariston • Mr. Gilles Pascual, Ernst & Young • Mr. Phạm Xuân Bách, Ernst & Young • Mr. Russel Marsh, Ernst & Young

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VEPG Secretariat • Mr. Rainer Brohm, VEPG Secretariat

• Ms. Nguyễn Phương Thảo, VEPG Secretariat

• Mr. Đỗ Quang Nhật, VEPG Secretariat

• Ms. Ngô Tố Nhiên, EU TAF for SE4All Project

• Ms. Vũ Minh Hiền, VEPG Secretariat

• Ms. Đặng Thị Hương Lan, VEPG Secretariat

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ANNEX 3 – Summary Minutes

Agenda item Note

Opening remarks, overview of the agenda

On behalf of MOIT, Ms. Nguyễn Thị Lâm Giang, Director General of DEESD delivered opening remarks and introduced the VNEEP 3 which was recently approved by the Prime Minister on 13 March 2019. Ms. Lâm Giang considered the VEPG TWG 2 on Energy Efficiency as an important platform for the MOIT to mobilize support from development partners and donors to support the implementation of VNEEP 3.

• The overall objective of the programme is to mobilize all the national and international resources to stimulate economical and efficient use of energy; to establish the habit of using energy economically and efficiently in all commercial and social activities; to reduce intensive use of energy in a variety of economic sectors and industries; making energy efficiency to be a regular activity for key energy users and key economic sectors that consume a lot of energy, aiming at green growth and sustainable development.

• Ms. Lâm Giang further indicated that the VNEEP 3 is more specific than VNEEP 1 and VNEEP 2 with about 20 specific targets. Among those, she highlighted the specific target of energy saving at the rate of 5-7% by 2025 to 8-10% by 2030, the inclusion of various industries and sectors such as construction, transport, agriculture, training and education in the programme, the establishment of a pilot fund promoting energy efficiency and a Vietnam Energy Data Center. The legal and policy framework, technical assistance guidance, capacity building and awareness raising programme on energy efficiency are also covered in the programme. Moreover, the local DOITs will also be involved in the programme to promote provincial participation.

• Compared to the previous programs, there is a major change in the organization of VNEEP 3 with the new establishment of a Steering Committee. The Steering Committee will be chaired by a Deputy Prime Minister. The MOIT Minister will be the Standing Deputy Head of the Steering Committee while other relevant ministries/agencies will also participate in the Committee.

• On her closing notes, Ms. Lâm Giang emphasized the need for further support from development partners and donors for the implementation of VNEEP 3.

• The Chair and Co-Chair thanked Ms. Lâm Giang for her remarks and invited participants to take this opportunity to actively join the discussion of the meeting, especially on the VNEEP 3 topic.

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Follow-up on the 2018 High-Level Meeting

The Secretariat reported on the Policy Recommendations endorsed at the 2nd High-Level Meeting (HLM) of the VEPG in November 2018.

• The Secretariat presented a matrix to track the progress of the implementation of the endorsed Policy Recommendations. This matrix will allow the monitoring, follow-up and reporting on the progress of the implementation of the Policy Recommendation (see Secretariat presentation in Annex 4). The matrix will be updated regularly and discussed in more detail in the next TWG 2 meeting that leads towards the HLM 2019.

The Secretariat presented the tentative work plan and the timeline for the TWGs, Steering Committee and the High-Level Meeting in 2019 (see Annex 4)

The Secretariat presented the VEPG Website including new features:

• The Secretariat introduced new tools to support VEPG members such as the legal database, information on partner events and project milestones (please refer to www.vepg.vn).

• The Secretariat invited all TWG members to submit information on project activities or workshops/events to be featured on the VEPG website or to be disseminated to all VEPG members via E-Mailings.

• The Secretariat also introduced the new email address: [email protected]

Implementing VNEEP 3 – Next Steps towards an Energy Efficiency Roadmap

MOIT/DEESD presented the details of the VNEEP3 which was approved by PM Decision 280 issued on 13 March 2019. VNEEP 3 will be implemented across the country within two phases: Phase 1 (2019-2025) and Phase 2 (2026-2030).

• A National Steering Committee for VNEEP 3 implementation will be established with the Deputy Prime Minister acting as the Head, MOIT Minister acting as Standing Deputy Head, and representatives from other Ministries: Construction, Transport, Agriculture and Rural Development, Training and Education, Labour, Invalids and Social Affairs, Information and Communication, Planning and Investment, Finance, Natural Resource and Environment, Vietnam Union of Science and Technology Associations acting as the members of the Steering Committee. At local/provincial/city level, DOITs will be responsible for monitoring VNEEP 3 implementation. (PPT slides can be found in Annex 4)

The Chair informed the meeting that DEESD is waiting for inputs from the relevant ministries and agencies regarding the establishment of the National Energy Efficiency Office and the National Steering Committee. The TORs for the Steering Committee and for the implementation of the measures, as well as the guidelines on fund disbursement for EE activities are being developed. DEESD is developing a guideline for localities/provinces to suggest appropriate EE activities which will be

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synchronized in the master plan. These activities will be funded by state budget for implementation.

• The EU informed that they are now in the formulation phase of the second phase of their energy support programme which will provide grant support of 140 million EUR to the energy sector, particularly in the areas of Energy Access, Renewable Energy, Energy Efficiency and Vietnam Energy Information System. The programme will last for 5 years which is the same time with VNEEP 3. The EU will work closely with MOIT to see how best to combine activities together and how to use the funding.

• KfW mentioned their support for EVN on improving EE in power transmission networks (reducing transmission losses) by providing loans.

Summarized here are the main comments of TWGs members on the VNEEP 3

1. The synchronization of the central Action Plan and the local action plans for VNEEP 3 implementation.

• Some members suggested that each province/sector might consider identifying their own specific energy efficiency targets to match with the specific targets of VNEEP 3 and to contribute to VNEEP 3’s implementation. Others were concerned if the central action plan might be too ambitious for the local/provincial level to implement.

• The Chair noted the suggestions and agreed with the general objective. However, he also outlined the challenge in assigning specific targets to sub-national level authorities due to the need for reliable data on energy consumption per region/per product etc. Currently not so many provinces have enough capacities to perform the required assessments and data surveys.

• Therefore, DEESD outlined that it will develop a more flexible framework which allows provinces to do self-assessment and identify their tailored and feasible action plans/activities for their local context. Once MOIT completes the development of a National MRV (Measuring, Reporting and Verification) Framework, MOIT will support localities to develop their own MRV Frameworks and EE action plans with specific indicators.

• DEESD will support provinces with the aim that local action plans will complement the central action plan without duplication of efforts. Moreover, DEESD will also coordinate international support regarding this topic.

• MOIT will work with the relevant ministries to develop indicators related to policies, plans, national monitoring and assessment in industry, construction, transport and agriculture.

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2. Request to develop an incentive mechanism for construction sector and green energy labelling for construction works

• TWG members indicated the lack of an incentive mechanisms for the construction sector which accounted for 40% of energy consumption and suggested MOIT as the focal point for VNEEP 3 implementation should work with other ministries to develop incentives for construction works. It was also emphasized that the development of an energy labelling for construction equipment, materials and certification for green works would be very helpful.

3. The link between VNEEP 3 and PDP 8

• DEESD confirmed that VNEEP 3 is part of the PDP8 development process.

The Chair and Co-Chair concluded the agenda topic:

• The Co-Chair thanked all TWG members for providing comments and feedback on the VNEEP 3.

• MOIT/DEESD will take these comments and feedbacks into account and look forward to receiving further support from the relevant ministries, development partners and donors for the VNEEP 3 implementation.

Focus Topics: Benchmarking Energy Efficiency and EE in Buildings

USAID presented on their Energy Efficiency Benchmarking project in the sugarcane, cement and textile sectors (see PPT slides in Annex 4).

UNDP presented on their Energy Efficiency in Commercial and Residential Buildings Project (EECB) (see PPT slides in Annex 4).

GIZ presented on the Programme for Energy Efficiency in Buildings (PEEB): Cross-cutting challenges and potential solutions to enhance EE in the building sector (see PPT slides in Annex 4)

TWG members reflected on the presentation in a brief Q&A session.

Summarized below are the comments from the members of the TWG on the focus topic:

1. Energy Efficiency in Commercial and Residential Buildings Project

(EECB)

• The members posed questions about EE in government building

using Public Private Partnership models and the

ownership/beneficiary issue in the EE commercial building.

• Expert from EECB project (UNDP) explained that promoting EE in

government buildings is already covered in the VNEEP 3 decision.

The procedures for energy labelling for construction works are

being developed. Once this is done, state budget will be mobilized

for EE government building projects.

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• The ownership issue in EE for Commercial Buildings could be

addressed by awareness raising programs for the public.

2. Energy Efficiency Benchmarking project

• Some participants inquired about the introduction of more

efficient boilers for sugar mills for biomass energy production.

• USAID explained that the introduction of more efficient boilers in

sugar mills for better biomass energy generation remains limited

in Viet Nam due to the uncertainty on the return from investment

on EE solutions.

• USAID further elaborated on the auditing process, the scenarios for payback periods and fund mobilization in EE benchmarking in the sugar sector.

Conclusions, agreements, closing remarks

The Chairs concluded the meeting: • The Chairs thanked all TWG 2 participants for joining and for the

very active and constructive participation in the meeting.

• The Chairs called for the mobilization of resources and technical support from Development Partners to implement the VNEEP3 Programme.

The Co-Chair, Ms. Akiko Fujii, UNDP Deputy Country Director announced that she finished her term at UNDP Vietnam and would leave for her new duty station. She reaffirmed UNDP’s commitment to continue their co-chairmanship of the TWG 2 on Energy Efficiency. UNDP will nominate her successor in due course.

• The Chairs and the Secretariat will consider the date for the next meeting and inform the members as soon as possible. The next meeting of TWG 4 will be organized in September/October 2019.

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ANNEX 4. – Presentations

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Viet Nam Energy Partnership GroupTechnical Working Group 2 – Energy Efficiency

3rd Meeting - 16. April 2019

MoIT, Hanoi

Trịnh Quốc Vũ

Deputy Director General

Energy Efficiency and Sustainable Development Department, DEESD/MoIT

Chair of Technical Working Group 2

Akiko Fujii

Deputy Country Director UNDP Viet NamCo-Chair of Technical Working Group 2

Key objectives of the meeting:

• Follow-up on VEPG High-Level Meeting 2018

• Key topic “Launch and Implementation of VNEEP 3”

• Focus topics „Energy Efficiency in Buildings“ and „Benchmarking Energy Efficiency“

• Discussion of TWG 2 work plan and priorities for 2019 and beyond

Agenda

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Agenda

Time Subject

14.00-14.101. Opening remarks, overview of the agenda

• Mr. Trịnh Quốc Vũ/ Ms. Akiko Fujii

14.10-14.20

2. Follow-up on the 2018 High-Level Meeting

• Secretariat: Brief report on the HLM and process of implementation/monitoring the TWG PolicyRecommendations

14.20-15.20

3. Implementing VNEEP 3 – Towards an Energy Efficiency Roadmap

• Ms. Nguyễn Thị Lâm Giang, DG of DEESD/MoIT: Address on Launch of VNEEP 3

• DEESD/MoIT: Update on VNEEP 3 approval and next steps for implementation

• Plenary discussion on priorities and support for VNEEP 3 implementation

15.20-15.30 Coffee/tea break

15.30-16.05

4. Special Focus topic: Benchmarking Energy Efficiency

• DEESD/MoIT: Introduction to the topic

• USAID: Benchmarking Energy Efficiency for the sugar and cement industry, plenary discussion

16.05-16.50

5. Special focus topic Energy Efficiency in Buildings

• Co-Chair: Introduction to the topic

• MoC/UNDP: EE in Commercial and Residential Buildings Project (EECB)

• MoC/GIZ: Energy Efficiency in Buildings Project (PEEB)

16.50-17.006. Conclusions and discussion of TWG 2 work plan 2019 and following

• Mr. Trịnh Quốc Vũ/ Ms. Akiko Fujii

Secretariat Updates – www.vepg.vn

Legal database is online! (VN and EN)

Let us know if you have requests regarding documents!

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Tiêu đề slide 3

Secretariat Updates – www.vepg.vn

VEPG partner events can be featured on the VEPG website

Please send information on your events/activities to the Secretariat!

Secretariat Updates – Contact the Secretariat

New E-Mail of Secretariat: [email protected]

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High-Level Meeting 2018

The HLM 2018

• MoIT Minister and Co-Chairs of VEPG endorsed the Policy Recommendations from 5 TWGs.

• 190 high-level representatives from the energy sector (VN government, development partners, private sector, research & science, civil society)

• Best-practice presentations on Solar Power development, Energy Efficiency/ESCO models and Rural Electrification.

High-Level Meeting 2018

Proceedings of the HLM 2018

• Available for download at www.vepg.vn

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VEPG - TWG 2 Policy Recommendations

Implementation of the VEPG Policy Recommendations

• MoIT Minister and Co-Chairs of VEPG endorsed the Policy Recommendations from 5 TWGs.

• Technical Working Groups are asked to focus work on supporting the implementation of the Policy Recommendations.

• Review of progress in HLM 2019 (and 2020).

VEPG - TWG 2 Policy Recommendations

Implementing the VEPG Policy Recommendations

→ Matrix for monitoring progress in implementation

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VEPG – Planning 2019

VEPG Planning 2019

3rd TWG 216 Apr 2019

▪ VNEEP 3

▪ Benchmarking

▪ EE in Buildings

March-MayTWG meetings

MaySC meeting

3rd SCMay 2019

▪ Progress review

▪ Planning 2019/2020

4th SCAug/Sep 2019

▪ Progress review

▪ Preparation of HLM

4th TWG 2Oct 2019

▪ Topics tbd

▪ Progress review

Aug/SepSC meeting

Sep/OctTWG meetings

OctHLM/Stakeholder

Forum

3rd HLM ▪ Stakeholder

dialogue▪ Best

practice▪ Progress

review

VNEEP 3 – Launch and Implementation

DEESD/MoIT: VNEEP 3 Launch and Implementation• Ms. Nguyễn Thị Lâm Giang, Director General DEESD/MoIT• Update on VNEEP 3 approval• VNEEP 3 implementation – next steps and support needs• Q&A / Discussion

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Further Updates on Energy Efficiency Activities

TWG 2 member updates• New projects/activities?• Upcoming events?

Update Member Activities

Partner Project/ActivityADB ▪ Enhancing readiness for solar power deployment in Vietnam (2017-2018)

o Including support measures for Energy Efficiency

▪ Integrated Resource Planning with Strategic Environmental Assessment for Sustainable Power Sector Development in the Greater Mekong (2017-2019)

o Specifically targeting Vietnam and EE policies, regulations and programs

▪ Southeast Asia Energy Sector Development, Investment Planning and Capacity Building Facility (2018-2021)

o The TA Facility will among others focus on ESCO development and LED street lighting

AUS ▪ Vietnam Climate Innovation Center (2015-2020, MoST, NATEC)

o Funds for a WB led project: support for entrepreneurs and SMEs in EE sector (among others)

EU ▪ Energy Sector Policy Support Programme to enhance Access to Sustainable Energy in Rural Areas of Vietnam (2017-2021, EREA/GIZ)

o Support of VN government in targeted programme on electricity supply to rural, mountainous and island areas to elleviate poverty. Also focussing on Energy Efficiency.

▪ EU Vietnam Energy Facility (2018-2021, MoIT/GIZ)

o Complementary support to above budget support programme. Among others: TA facility (demand-driven) also focussing on Energy Effficiency

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Update Member Activities

Partner Project/ActivityEU ▪ Danang Solar Energy Development (2017-2020, DECC)

o Support project implemented by Danang Energy Efficiency Center (DEEC). Improving regulatory environment and facilitating pilote projects, also including Energy Efficiency.

▪ Civil society meets RE&EE - trainings, seminars and communication skills to boost RE&EE as a key tool for sustainable development and green growth strategy in Vietnam (E-Enhance) (2017-2021, GreenID)

o Fostering RE&EE development in Vietnam through building civil society and local champions for improving energy access and living conditions of Vietnamese citizens.

▪ VEPG Secretariat (2016-2018, concluded, MoIT)

o Support the establishment and start-up of the Viet Nam Energy Partnership Group (VEPG) between Development Partners and MOIT.

GIZ ▪ Smart Grids for Renewable Energy and Energy Efficiency (2017-2021, ERAV)

o Support for VN power sector in developing a smart power supply system, including focus on Energy Efficiency (regulatory framework, human capacity development, technology cooperation)

▪ Renewable energy and energy efficiency (4E), Phase II (2017-2021, MoIT)

o Supporting the necessary legal and regulatory framework for large-scale solar energy and Energy Efficiency development (among that: Energy Efficiency promotion through systematic stock-taking, data analysis and macro-economic cost-benefit analysis).

Update Member Activities

Partner Project/ActivityKfW ▪ Energy Efficiency in Urban Areas (2014-2019, EVN)

o Rehabilitation and modernization of power grid in urban areas in Hanoi and HCMC in order to reduce losses and avoid CO2 emissions and to ensure a reliable and cost-effective power supply (installation of new meters, rehabilitation and upgrade of substations and MV & LV lines in urban grid).

UK ▪ South East Asia Low Carbon Energy Programme (not yet been launched, 2018-2022, TBD)

o Strengthen policy and regulatory frameworks for green finance and energy efficiency; Facilitate greater investment in low carbon technologies, including improved green finance flows; Improve the ease of doing business for low carbon projects, energy efficient products and EE products and services; Increase innovation and knowledge transfer on energy efficiency and low carbon technologies; …

UNDP ▪ Promotion of Non-fired brick production and utilization in Viet Nam (NFB) (2016-2020, MoC)

o Reducing the annual growth rate of GHG emissions by displacing the use of fossil fuels and the usage of good quality soil for brick making through the increased production, sale and utilization of non-fired bricks (NFBs) in Viet Nam (policy advise, capacity building, improving access to financing, TA/demonstration projects).

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Update Member Activities

Partner Project/ActivityUNDP ▪ Local Development and Promotion of LED Technologies for Advanced General

Lighting (2015-2019, VAST)

o Mitigating GHG emissions through transformation of the lighting market towards greater usage of locally produced LED lighting products in Viet Nam (knowledge and technology transfer, demonstration of cost-effective local production).

▪ Strengthening Capacity and Institutional Reform for Green Growth and Sustainable Development in Vietnam (CIGG) (2015-2018, MPI)

o Building capacity to advance green growth by strengthening policies, regulations and technical guidance for the implementation of the Viet Nam Green Growth Strategy and Action Plan (capacities of MPI, MOF, MOT and provinces for effective implementation and monitoring, policy framework, access to green growth financing and pilot projects).

UNIDO ▪ Promotion of Energy Efficiency Industrial Boiler adoption and operating practices in Vietnam (2015-2019, MoIT)

o Reduce energy consumption and reduce greenhouse gas emissions through promoting the widespread adoption of energy efficiency boilers and best operation practices in industry.

▪ Implementation of Eco-industrial Park Initiative for Sustainable Industrial Zones in Viet Nam (2014-2018, MPI)

o Increased transfer, deployment and diffusion of clean and low-carbon technologies and practices for the minimization of GHG emissions, POPs releases and water pollutants as well as improved water efficiency and the sound management of chemicals in industrial zones (IZ) of Vietnam.

Update Member Activities

Partner Project/ActivityUNDP ▪ Local Development and Promotion of LED Technologies for Advanced General

Lighting (2015-2019, VAST)

o Mitigating GHG emissions through transformation of the lighting market towards greater usage of locally produced LED lighting products in Viet Nam (knowledge and technology transfer, demonstration of cost-effective local production).

▪ Strengthening Capacity and Institutional Reform for Green Growth and Sustainable Development in Vietnam (CIGG) (2015-2018, MPI)

o Building capacity to advance green growth by strengthening policies, regulations and technical guidance for the implementation of the Viet Nam Green Growth Strategy and Action Plan (capacities of MPI, MOF, MOT and provinces for effective implementation and monitoring, policy framework, access to green growth financing and pilot projects).

UNIDO ▪ Promotion of Energy Efficiency Industrial Boiler adoption and operating practices in Vietnam (2015-2019, MoIT)

o Reduce energy consumption and reduce greenhouse gas emissions through promoting the widespread adoption of energy efficiency boilers and best operation practices in industry.

▪ Implementation of Eco-industrial Park Initiative for Sustainable Industrial Zones in Viet Nam (2014-2018, MPI)

o Increased transfer, deployment and diffusion of clean and low-carbon technologies and practices for the minimization of GHG emissions, POPs releases and water pollutants as well as improved water efficiency and the sound management of chemicals in industrial zones (IZ) of Vietnam.

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Update Member Activities

Partner Project/ActivityUNIDO ▪ Strengthen the supply capacity of the fruits and vegetable sector by applying

proper technologies along the value chain (UNIDO component under UN JP to support NTP on New Rural Development) (2012-2018, MARD)

o Improved skills and knowledge for enterprises, collectors, and smallholders on good vegetables & fruits (mango) management practice under VietGAP standard, Post-harvest technology, management of vegetable production chain.

▪ UNIDO-UNEP Global Program on Resource Efficiency and Cleaner Production (RECP) in developing and transition countries (Vietnam component) (2013-2018, Vietnam Cleaner Production Center)

o Identifying and filling gaps for the ratification of the Kigali Amendment to the Montreal Protocol and ensure the early compliance of the country vis a vis the new obligations.

▪ Regional Project: Demonstration of BAT and BEP in open burning sector in response to the Stockholm Convention on POPs (Viet Nam component) (2015-2020, MoNRE)

o To achieve meaningful and sustainable release reduction of UP-POPs in the open burning sector, through a) partnering in investments for BAT/BEP implementation at selected demonstration sites, b) regulatory and institutional strengthening measures and c) through a regional cooperation and information sharing platform

▪ Enabling activities for HFC phase-down in Viet Nam (2017-2019, MoNRE)

o Reducing greenhouse gas emissions by creating an enabling environment for the use of hydrocarbon refrigerants (with a very low GWP) in cold storage facilities in Viet Nam

Update Member Activities

Partner Project/ActivityUSAID ▪ Vietnam Low Emission Energy Program (V-LEEP) (2015-2020, Deloitte)

o Building effective policies, regulations, and mechanisms to promote low emission development in energy sector; as well as to attract public-private investment in renewable energy development and energy efficiency.

World Bank

▪ Distribution Efficiency Project (-2020, EVN, PCs)

o Upgrading and Expansion of Distribution-Network

▪ Transmission Efficiency Project (-2020, EVN/NPT)

o Upgrading and expansion of T-network

▪ EE for Industrial Energy Project (-2023, MoIT/Banks)

o Promote EE in industry

▪ GCF EE for Industry Risk Sharing Facility (-2024, MoIT)

o Risk Sharing Facility to promote EE in industry

▪ Scaling up ESCOs (-2018, MoIT)

o Defining strategy for VN to develop ESCOs

▪ Develop EE Targets and Mandatory EE Regime for VN (-2019, MoIT)

o Develop efficient EE framework

06/11/2019

Tiêu đề slide 11

Update Member Activities – New Projects

Partner Project/ActivityGIZ ▪ Programme for Energy Efficiency in Building, PEEB (2019-2020), MoC

o Promoting the creation of regulatory and normative framework conditions for transformation into a low-emission building and supporting the creation of incentives systems mobilizing investment for EE in Building.

KOICA ▪ Promoting Investment Market for Energy Efficiency in Industrial Sector in Viet Nam (2018–2019), DEESD/MoIT

o Fostering the development of energy service companies and facilitating the implementation of energy saving and energy efficiency projects.

ADEME ▪ Low Carbon building and Sustainable city (2017-2019, DSTE/MoC)

o Applying bioclimatic design at the planning and building stages for buildings with the minimum size of 10,000 m2 so that to optimize buildings’ energy and

resources consumption.

Coffee Break

06/11/2019

Tiêu đề slide 12

Special Focus – Benchmarking Energy Efficiency

DEESD/MoIT Introduction: Benchmarking• Benchmarking needs as part of VNEEP 3

USAID: Experiences with Benchmarking• Presentation on benchmarking activities in the sugar and

cement sector Viet Nam.

Plenary discussion• Your questions and comments!• Q&A

Special Focus – Energy Efficiency in Buildings

Co-Chair/Ms. Akiko: Introduction to the topic field• Energy Efficiency in Buildings

MoC/UNDP: EE in Buildings Project (EECB)• Mr. Yannick Millet (UNDP): Presentation on EE in buildings

project

MoC/GIZ: EE in Buildings Project (PEEB)• Ms. Vu Thi Kim Thoa (GIZ): Presentation on EE in buildings

project

Plenary discussion• Common challenges, solutions to enhance EE in Buildings• EE in buildings as part of VNEEP 3 implementation

06/11/2019

Tiêu đề slide 13

Outlook 2019 – TWG 2 Workplan

Topics for 2019/2020?• Follow-up on implementation of VNEEP 3• Energy Efficiency in Industry• Financing for Energy Efficiency• Energy Efficiency in Transport (?) • (…)

3rd TWG 216 Apr 2019

▪ VNEEP 3

▪ Benchmarking

▪ EE in Buildings

March-MayTWG meetings

MaySC meeting

3rd SCMay 2019

▪ Progress review

▪ Planning 2019/2020

4th SCAug/Sep 2019

▪ Progress review

▪ Preparation of HLM

4th TWG 2Oct 2019

▪ Topics tbd

▪ Progress review

Aug/SepSC meeting

Sep/OctTWG meetings

OctHLM/Stakeholder

Forum

3rd HLM ▪ Stakeholder

dialogue▪ Best

practice▪ Progress

review

Conlusions and Closing

Change in Co-Chairing of TWG 2

• „The VEPG Chair and Co-Chairs thank Ms. Akiko for her continuing support of TWG 2 and her dedication to strengthen the work of the Viet Nam Energy Partnership during her Co-Chair term.“

• New Co-Chair of TWG 2 will be confirmed by the VEPG SC to begin his/her term after the summer.

06/11/2019

Tiêu đề slide 14

Thank you for your attention and participation!

1

INTRODUCTION ABOUT THE NATIONAL

ENERGY EFFICIENCY PROGRAM IN THE PERIOD 2019-2030

Decision No. 280/QD-TTg dated March 13, 2019 by the Prime Minister

Department of Energy Efficiency and Sustainable Development

MINISTRY OF INDUSTRY AND TRADE

Hanoi - April 16, 2019

Agenda

01

02

03

04

PROGRAM OBJECTIVES

PROGRAM TASKS

SCOPE, SUBJECTS AND DURATION

IMPLEMENTATION

2

PROGRAM OBJECTIVES01

OVERALL OBJECTIVES

1. To mobilize all the national and international resources to stimulateeconomical and efficient use of energy through synchronized implementationof state management measures, technical assistance, science and technologyresearch and product development, market transition, human resource trainingand development in the field of economical and efficient use of energy.

2. To shape the habit of using energy economically and effectively in allsocial activities; to reduce intensive use of energy in a variety of economicsectors and industries; energy efficiency becomes a regular activity in keyenergy users and key economic sectors that consume a lot of energy, aiming atgreen growth and sustainable development.

01 02

Save 5-7% of the total nationalenergy consumption

2019 - 2025

Save 8-10% of the total national energy consumption

2025 - 2030

SPECIFIC OBJECTIVES

PROGRAM OBJECTIVES01

3

Period up to 2025 Period up to 2030▪ To complete mechanisms, policies and legal

regulations on energy efficiency▪ To reduce power loss to less than 6.5%▪ To reduce average energy consumption in the

industrial sectors compared to the period 2015-2018: Steel 3-10%, Chemicals >7%, Plastics 18-22.46%, Cement >7.5%, Textile > 5%, Beer, alcohol and beverages 3-6.88%, Paper 8-15.8%

▪ To reduce power loss to less than 6%▪ To reduce average energy consumption in the

industrial sectors compared to the period 2015-2018: Steel 5-16.5%, Chemicals >10%, Plastics 21.55-24.81%, Cement >10.89%, Textile > 6.8%, Beer, alcohol and beverages 4.6 – 8.44%, Paper 9.9-18.48%.

PROGRAM OBJECTIVES01

Period up to 2025 Period up to 2030▪ 70% of industrial parks and 50% of industrial

clusters approach and apply solutions to use energy economically and efficiently

▪ 100% of key energy users apply energy management system

▪ 100% of key transport companies have programs to disseminate skills to control vehicles technical solutions in anenergy-saving manner

▪ 80 construction works are certified ‘green

works’

▪ 90% of industrial parks and 70% of industrial clusters approach and apply solutions to use energy economically and efficiently

▪ Reduce 5% of fuel and oil consumption in transportation

▪ 150 construction works are certified ‘green

works’

▪ To implement energy labeling program for 50% of building materials requiring thermal insulation.

PROGRAM OBJECTIVES01

4

Period up to 2025 Period up to 2030▪ To develop market transformation programs on

energy efficiency for at least 5 popular products▪ To provide training and issue certificates for 3,000

specialists in energy management / energy audit▪ 90% of centrally-affiliated cities and provinces

develop and approve the Program on economicaland efficient use of energy

▪ To develop a network of energy efficiency units in at least 50 of centrally-affiliated cities and provinces. Building 1 Viet Nam Energy Information Center

▪ To provide training and issue and certificates to 5,000 specialists in energy management / energy audit

▪ 100% of centrally-affiliated cities and provinces develop and approve the Program on economicaland efficient use of energy

PROGRAM OBJECTIVES01

SCOPE, SUBJECTS, DURATION02

Implement and adopt nationwide

Apply to all subjects including agencies, organizations and individuals related to economical and efficient use of energy

in Viet Nam

Duration of implementation: 2019-2030, divided into 2 periods 2019-2025 and 2026-2030

• VNEEP 3 PROGRAMME

5

PROGRAM TASKS03

01

(1). Review, develop and finalize mechanisms and policies on economical and efficient use of energy - Review, amend, supplement and systematize legal documents on economical and efficient use of energy; study and develop technical guidelines on economical and efficient use of energy.

- Study and develop energy efficiency certification system for solutions to economical and efficient use of energy.

- Research, develop and promulgate policies and legal regulations on energy service company (ESCO) models;

- Review, amend, supplement and finalize the system of technical standards and regulations on economical and efficient use of

energy.

- Develop a system of capacity assessment, recognition, and announcement of energy audit organizations meeting the statutory standards.

- Review, formulate and implement the development and issuance of energy norms and consumption for sectors / sub-sectors in the fields of industry, agriculture, transportation, construction, and services.

- Develop policy mechanisms to promote economical and efficient use of energy for small and medium enterprises.

- Develop mechanisms, policies and measures to promote the use of new energy, economical and efficient use of energy for vehicles and transport equipment

PROGRAM TASKS03

01

(2). Provide technical and financial assistance to promote business, production and investment projects on economical and efficient use of energy

- Produce equipment and means of transport with high energy efficiency and new materials applied in energy-saving solutions;

- Develop the system of promotion and distribution of energy-saving and environmentally friendly products;

- Guide and adopt energy-saving solutions, convert to energy efficient equipment, solutions to apply renewable energy (solar energy, wind energy, biogas, biomass, etc) in households;

- Provide technical assistance, training, invest in establishment and upgrading of energy efficiency laboratories;

- Develop demonstration models on borrowing investment capital for energy saving and efficient projects;

- Evaluate and apply economical and efficient energy use solutions for industrial parks and industrial clusters;

- Other activities related to economical and efficient use of energy.

.

6

PROGRAM TASKS03

01

(3). Build one Viet Nam energy information center, databases, application of information technology on energy and economical and efficient use of energy

- Collect energy statistics, establish a national database system, energy and energy efficiency sector database; establish mechanisms for coordination and information sharing of energy and energy efficiency databases with other databases.

PROGRAM TASKS03

01

(4). Enhance capacity for energy efficiency

- Train and enhance capacity of officials and focal agencies on energy efficiency from central to local levels in managing theimplementation of the Government’s regulations on energy efficiency; organize trainingcourses and workshops on professional and technical contents on energy efficiency.

- Organize training and enhance capacity for research institutes, training institutions, consultancy organizations in the field ofenergy efficiency and energy service companies (ESCO).

- Update and compile new training materials, technical documents, instruction materials, for capacity enhancement activities onenergy efficiency for different stakeholders/ beneficiaries;

- Review, supplement and update relevant contents on energy efficiency in the training programs of the energysector in education and training institutions throughout the education system;

- Consolidate and strengthen the network of consultancy and service organizations on energy efficiency and clean productionnationwide from the central to local levels;

- Invest and operationalize 02 national training centers on energy management.

7

PROGRAM TASKS03

01

(5). Strengthen inspection, supervision, forcing and guiding the implementation and evaluation of the results of adoption of legal regulations on economical and efficient use of energy

- Organize training on inspection, supervision, management and evaluation of the results of implementing legal regulations on energyefficiency for relevant stakeholders/beneficiaries;

- Support the implementation of inspection, monitoring and evaluation of compliance with energy efficiency laws and regulations byindividual and organizations as regulated in the Law Energy Efficiency and others related documents;

- Develop a Handbook for the inspection, monitoring and evaluation of the implementation of legal regulations on energy efficiency.

PROGRAM TASKS03

01

(6). Communication to raise community awareness on energy efficiency

- Develop and implement communication campaigns and programs on energy efficiency through different forms to raise awareness and responsibility of community, businesses, and society.

- Develop communication programs on energy efficient products, including: educational programs; provide information for businessesand communities; hold contests and prizes regularly; organize movements/ campaigns to promote energy efficiency and environmental protection; organize fairs and exhibitions promoting energy efficient products and technologies.

8

PROGRAM TASKS03

01

(6). Strengthen international relations and cooperation in energy efficiency sector

- Expand international cooperation, promote and strengthen policy exchanges, experiences sharing and technical cooperation withcountries, international organizations and non-governmental organizations on energy efficiency;

- Increase the receipt of technical assistance, technology transfer and human resources training in energy efficiency;

- Research, mobilize, and conduct technical assistance projects, investment support projects related energy efficiency;

- Cooperate in the development of bilateral and multilateral financial mechanisms to promote the implementation of energy saving solutions.

PROGRAM TASKS03

01

(7). Scientific research and technological development on energy efficiency

- Mobilize human resources, research equipment and financial resources from the State budget, individuals and organizations domestic and abroad to build the national scientific and technological capacity on energy efficiency;

- Develop and undertake key scientific and technological research programs to develop and apply science and technology in the field of energy efficiency in actual production.

9

PROGRAM TASKS03

01

(8). Establish funds to promote economical and efficient use of energy

Explore, develop and propose the establishment of a pilot fund to promote energy efficiency on the basis of mobilizing all domestic and foreign resources for the support of energy efficiency activities in Viet Nam

PROGRAM TASKS03

011

2

3

Funding for implementation

State budget source

Domestic credit sources from organizations and individuals using energy; energy service providers

Other legal funding sources

10

IMPLEMENTATION04

Goverment

Ministry of TransportMinistry of Industry

and Trade

DEESD/ Assistance Office for the

Steering Committee

Ministry of Construction Ministries: MARD, MoST, MoET, MPT, MoF...

Provincial/municipal People’s Committees

Departments of Industry and Trade

Organizations and individuals using

energy EE

Steering Committee

Thank you!

Department of Energy Efficiency and Sustainable DevelopmentAddress: Room 305, B Building, MoIT, 54 HBT, HNEmail: [email protected]: http://tietkiemnangluong.com.vn/

Contact:

06/11/2019

1

06/11/2019 FOOTER GOES HERE 1

ENERGY BENCHMARKING HIGHLIGHTS

SUGARCANE, CEMENT, and TEXTILE SECTORS

PH

OTO

: U

SA

ID

• V-LEEP began this activity in 2017.

• Key activities:

– Reviewed available studies provided by EESD on benchmarking methodology, energy efficiency data, energy consumption analysis, and other relevant researches for the sugar sector

– Collected data from 34 sugar mills in Vietnam and then updated the sectoral database

– Conducted walk-through energy audits at 7 sugar mills

– Calculated specific energy consumption and energy benchmarks for the sector

– Drafted MEPS circular for sugar

– Organized consultation workshops to socialize the energy benchmarking results and the draft MEPS circular

06/11/2019 2

Energy benchmarking for sugarcane sector

06/11/2019

2

• Key results:

– An approved energy benchmarking and questionnaire for sugarcane sector

– An energy and production database of 34 operating sugar mills in Vietnam

– 1st consultation workshop in September 2018 to socialize energy benchmarking results and the draft MEPS Circular

– Walk-through energy audits at 7 sugar mills

– An energy and production validated database of 27 operating sugar mills in Vietnam

– A calculation tool and specific energy consumption of 34 sugar mills that show consumed electricity and total energy per ton of sugar

– Draft MEPS circular for sugar

– Consultation workshop will be organized early April 2019 to socialize the energy benchmarking results and the draft MEPS circular

06/11/2019 3

Energy benchmarking for sugarcane sector

• Key challenges and issues:

– Low international sugar market causes a decline in domestic sugar prices, which impact directly on production and business contexts, as well as investments for technology innovations and upgrading, improving performance and energy efficiency efforts

– FIT (Feed-In-Tariff) of 5.8 US cent per kWh is lower than sugar mills’ expectations which strongly influences their investment decisions in upgrading productions process, co-generation systems, and energy efficiency which can increase selling electricity into the gird

– Lack of energy efficiency funds and/or carbon-finance for sugar mills which may cause less incentive investments

– Lack of ESCO models in Vietnam which may cause narrow investment options for sugar mills

– Lack of measurement and verification protocol in Vietnam which may cause controversy between parties

– Not enough MEPS implementation capacity at provincial levels

06/11/2019 4

Energy benchmarking for sugarcane sector

06/11/2019

3

• The activity started in 2017.

• Key activities:

– Studied and reviewed production processes and energy consumption patterns in Vietnam cement sector

– Reviewed Vietnam and international experience on benchmarking methodologies for similar industrial standard-setting and proposed benchmarking methodologies that are consistent with circumstances in Vietnam and can support this activity

– Collecting data and developing databases on energy use and production in cement sector

– Formulate energy consumption benchmarking and draft MEPS circular for Vietnam cement sector

– Organize consultation workshops to socialize the results

06/11/2019 5

Energy benchmarking for cement sector

• Key results:

– Foundation for collaboration between Ministry of Industry and Trade (MoIT) and Ministry of Construction (MoC) to implement energy benchmarking for cement sector. It is expected that the results will be helpful to issue MEPS circular and cement development strategy

– Approved energy benchmarking and questionnaires for cement sector

– Consultation workshops was organized in 2018 to socialize the energy benchmarking methodology and approach

– Developed calculation tool based on CSI protocol

– Conduct survey at 54 cement plants in Vietnam

– An energy and production verified database of 27 operating cement plants in Vietnam; the database is on-going develop and complete

– Walk-through energy audits at 4 cement plants

– Specific energy consumptions of 27 cement plants separated in consumed thermal, electricity and total energy per ton of clinker and cement; the final result is going to finalize with updating and verified data

– Draft MEPS circular

– Consultation workshop will be organized to socialize the energy benchmarking results and draft MEPS circular

06/11/2019 6

Energy benchmarking for cement sector

06/11/2019

4

• Key challenges and issues:

– Low electricity tariff may affects directly on investment decisions in upgrading productions process, co-generation system, and energy efficiency

– Lack of energy efficiency funds and/or carbon-finance which may cause less incentive investments

– Lack of ESCO models in Vietnam which may cause narrow investment options

– Lack of measurement and verification protocol in Vietnam which may cause controversy between parties

– Not enough MEPS implementation capacities at provincial levels

06/11/2019 7

Energy benchmarking for cement sector

• The activity started in 2018.

• Key activities:

– Studied production processes and energy consumption patterns in Vietnam textile sector

– Reviewed Vietnam and international experience on benchmarking methodologies for similar industrial standard-setting and proposed benchmarking methodologies that are consistent with circumstances in Vietnam and can support this activity

– Collect and validate data, and develop databases on energy use and production in textile sector

– Formulate energy consumption benchmarking and draft MEPS circular and its implementation roadmap for Vietnam textile sector

– Organize consultation workshops to socialize the results

06/11/2019 8

Energy benchmarking for textile sector

06/11/2019

5

• Expected results:

– Energy benchmarking methodology and questionnaires for textile sector

– Consultation workshop in early April 2019 to socialize the energy benchmarking methodology and approach

– Surveys at textile factories in Vietnam

– An energy and production database of Vietnam textile sector

– Walk-through energy audits at 10 textile factories

– Specific energy consumptions of surveyed textile factories separated in consumed thermal, electricity and total energy per unit of product

– Draft MEPS circular and its implementation roadmap

– Consultation workshop to socialize the energy benchmarking results and draft MEPS circular

06/11/2019 9

Energy benchmarking for textile sector

• Key challenges and issues:

– Low electricity tariff directly influences investment decisions in upgrading production process and energy efficiency

– Implementation of regulations on DEUs need strengthening

– Lack of energy efficiency funds and/or carbon-finance which may cause less incentive investments

– Lack of ESCO models in Vietnam which may cause narrow investment options

– Lack of measurement and verification protocol in Vietnam which may cause controversy between parties

– Not enough MEPS implementation capacities at provincial levels

06/11/2019 10

Energy benchmarking for textile sector

1

EECB projectHow to mainstream EE buildings?

Hanoi, 16 April 2019 - VEPG

Project on Energy Efficiency Improvement in Commercial and High-Rise Residential Buildings in Viet Nam

2

General Information about the EECB project

▪ Implementation Duration: 05 April 2016 – 05 April 2020

▪ Implementation Partner: Ministry of Construction

▪ Implementation Entity: Department of Science, TechnologY and Environment, MOC

▪ Financing Partner: United Nations Development Programme/ Global Environment Facilities

▪ Total Resources required: US$ 24,696,550.

▪ GEF: US$3,198,000;

▪ Parallel: US$ 16,728,550 (UNDP: US$150,000 and Private Sector: US$16,578,550);

▪ In-kind Contributions: US$ 4,770,000

▪ Long-termed Objective: To reduce intensity of GHG emissions from the building sector in Viet Nam.

▪ Direct Objective: To improve the energy utilization performance of commercial and high-rise residential buildings .

2

3

Approach:

➢ Remove the barriers to achieve compliance with the revised EECB code (QCVN 09/2013);

➢ Apply systematic and practical technology measures to achieve EE in commercial and high-rise buildings in Vietnam.

Components:

Component 1: Improvement and Enforcement of Energy Efficiency Building Code;

Component 2: Building Market Development Support Initiatives

Component 3: Building EE technology applications and replications

General Information(continued)

4

Improvement and Enforcement of EE Building Code

Main Activities aim at developing:

➢ An EE development roadmap with vision until 2030.

➢ Code compliance toolkits and guidelines;

➢ Building material energy related standards

➢ A database for construction materials and EE appliances and equipment;

➢ An Energy Monitoring and Verification (M&V) scheme;

➢ Specific Energy Consumption (SEC) profiles and Energy consumption benchmarking for several building typologies in 03 different climate zones

➢ An EE certification/labeling scheme for buildings

EECB project Component 1

3

5

Building Market Development Support Initiatives;

Main Activities aim at developing:

➢ Incentives scheme (Non financial)

➢ Capacity building and training programs to be delivered to all stakeholders

➢ Communication programme to raise awareness all of stakeholders

EECB project Component 2

6

Building EE technology applications andreplicationsMain Activities aim at providing technical assistance for:

➢ EE design and construction of 08 new buildings (achieving

at least 30% energy savings)

➢ Energy audit, improvement recommendations and

retrofitting works follow up for 08 existing buildings.

Final performance of all buildings will be monitored through an Energy monitoring and verification system during their operations.

EECB project Component 3

4

7

Barriers and challenges 1/2

• Entire building life cycle falls under the responsibility of 02 different ministries.

• Precise EE targets and objectives yet to be defined for the building sector

• Highly subsidised and low energy price

• Insufficient and unqualified resources to widely enforce EE building codes

• Insufficient guidance about available EE techniques and products

• Lack of ESCO admin/legal framework

• Lack of incentives policy or EE finance access

8

Barriers and challenges 2/2

➢ Short term investment perspectives from developers

➢ Wrong perception about EE premium cost

➢ Unqualified/unaware building designers, builders and

operators

➢ EE design principles not integrated in current

Academia curriculum

➢ Lack of awareness / information of consumers

5

9

What drives green and EE initiatives in Vietnam?

➢ MNC corporate guidelines

➢ Financial long term benefits of investors who are also operating their buildings

➢ Sales and marketing considerations

➢ Increasing awareness of global environmental issues

10

RecommendationsPLAN

➢ Unification – coordination of main actors:• Cross ministerial and central – local governments collaboration

• Common EE & GB platform with Gov., industry and Academia sectors

➢ Definition of a clear EE development roadmap• Definition of performance targets (new & existing buildings)

• All new Government buildings to be EE, to lead by example

• Endorsement – dissemination of EE labeling and certification schemes

• Development of incentives / penalty policies and supporting financial mechanisms

➢ Ensure data availability, update and analysis

6

11

Recommendations IMPLEMENTATION

On Government side:

➢ Allocate necessary financial and human resources for law enforcement

➢ Build capacity for DOCs and other law enforcement actors

➢ Design and build EE public buildings

➢ Showcase and advertise outstanding and highly performing buildings, through EE labeling and Green Building certification.

➢ Define / facilitate incentive schemes (at both national and local levels)

12

Recommendations IMPLEMENTATION

For Private sector➢ Mainstream and align EE design and construction practices with international

ones

➢ Build capacity for construction industry players, equipment and materials

manufacturers

➢ Facilitate Energy Audits and Energy Performance Contract implementation

➢ Raise awareness of consumers (building end users) as regards their buying –

renting choices

For Private –Academia sectors

➢ Integrate Energy Integrated Design and sustainable construction principles in

University Curriculum

7

13

Recommendations VERIFICATION - UPDATE

➢ Assessing law enforcement performance levels yearly

➢ Monitoring, Verifying and Analysing current levels of collected data (related to design, construction, operations of building)

➢ Updating strategy/ targets / objectives accordingly :• current laws, codes and other legal documents

• Broaden scope of building typologies to be encompassed

• training curriculum

• more adapted incentive policies

➢ Updating training needs, and raising awareness campaigns

➢ Upgrading EE national platform format and actors if necessary

The Government shall play an important role by:

Thank you for your attention!

Cross-cutting challenges and potential solutions to

enhance EE in the building sector

16 April 2019

PROGRAMME FOR ENERGY EFFICIENCY IN BUILDINGS

ImplementingAgencies

DonorOrganisations

38

Umbrella

PEEB is an advisory and financing facility for

energy-efficient buildings.

It was initiated as a partnership programme by

France and Germany and is catalysed by the Global

Alliance for Buildings and Construction (GABC),

which was launched at the Paris Climate Summit in

2015.

What is PEEB?

09 April 2019 PEEB Programme for Energy Efficiency in Buildings

09.04.2019 Programme for Energy Efficiency in Buildings (PEEB) 39

Support ambitious NDCs and adapt

building codes and standards

Policies and Standards

Increase capacity of building sector

professionals to design, plan, finance

and run energy-efficient buildings

Capacity-buildingand Knowledge

Assess feasibility and support project

development for bankable projects

Project development

Provide financing for transformative

construction projects and mobilise

innovative climate financing options

Finance

PEEBs Services to Countries

09 April 2019 PEEB Programme for Energy Efficiency in Buildings 40

Combining Technical & Financial Assistance

Technical Assistance

• Authorities & Developers applyknowledge

• Building sectorcontributes to NDCs

Ministries, EnergyAgencies, EnergyAdvisors/ Experts

Financial Assistance

• EEB financing by donors, banks, IFIs gains momentum

• TA + FA Solutions are being systematized

Real Estate Developers, Banks, IFIs, Building

Owners

Building SectorTransformation

• High volume investments and climate finance trigger Building Sector Transformation

• NDCs increase gradually ambition

Towards a low-carbon transition of the Building Sector

09.04.2019 Programme for Energy Efficiency in Buildings (PEEB) 41

Mexico

Morocco Tunisia

Senegal Vietnam

PEEB Partner countries

New partner countries in preparation

Thank you!

Name of PEEB contact person: Vu Thi Kim ThoaEmail: [email protected]