Vietnam announces electricity efficiency programme

The Vietnamese government has announced a $ 5.5 mm World Bank financed project designed to improve the efficiency of the country's electricity system. Announcing the approval, Industry Minister Hoang Trung Hai said, "This project will promote the more efficient use of electricity and reduction in peak loads that will ease constrains on the national system, reduce the need for new investments and provide energy access to the poor.”
"Although Vietnam is a resource rich country, we should strive to develop the energy sector along an environmentally sustainable path," he said.

The project is expected to reduce peak electricity demand by more than 120 MW over three years at a cost less than one-tenth of the money required to build a new power plant. It will do so by installing 5,600 time-of-use meters in the premises of about 4,000 large-and medium-sized customers and piloting voluntary direct load control programmes for about 2,000 end-user customers.
The project is also expected to save about 500 GWh through the sale of about 1 mm compact lamps to households in high-load locations and the promotion of the more efficient fluorescent tube lamp. This part of the project will be the responsibility of Electricity of Vietnam (EVN).

EVN director general Dao Van Hung forecasts an almost a three-fold increase in demand for electricity during the next ten years. Consumption is expected to go from almost 26 000 GWh in 2001 to more than 70 000 GWh by 2010 a yearly growth in demand of the 13-15 %.
The increased consumption would make it essential for demand side management and energy efficiency programmes to be strengthened, he said. The Industry Ministry will implement the second component of the project. This will be to help industrial and commercial customers reduce their electricity bills, thus reducing their operating costs and making them more competitive.

The ministry will develop a commercial service industry to provide heavy energy users with both technical help and assistance with investment in more efficient equipment. It will initiate a training programme for new service providers, support energy audit costs, and offer small grants for investments in order to help stimulate the market.
World Bank director Vietnam Klaus Rohland said: "The World Bank has been engaged in a phased, 12-year, 1998-2010, systematic approach to demand-side management and energy efficiency activities in Vietnam. This second phase effort, supported by the Global Environment Fund administered by the World Bank will help reduce poverty by providing improved electricity services to the poor while limiting the environmental degradation from expanded power supply investments."