Mar 06, 2018 / 17:23

Vietnam to invest in energy efficiency project

The Ministry of Industry and Trade (MoIT) on March 5 launched a 158 million USD energy project to help key industries and enterprises with energy saving.

Deputy Minister Hoang Quoc Vuong said the “Vietnam Energy Efficiency for Industrial Enterprises” project (VEEIE) aims to promote efficient energy use and contribute to the country’s overall goals of energy efficiency and conservation.

The project, which was established by the World Bank (WB) and MoIT on December 29, 2017, and will last until July 2022, has a total budget of 158 million USD with two-thirds of the fund being financed by the WB’s International Bank for Reconstruction and Development and the rest being provided by the Vietnamese Government.
158 million USD energy project to help key industries and enterprises with energy saving
158 million USD energy project to help key industries and enterprises with energy saving
The financing provided by the WB includes two components – 100 million USD will be spent on developing energy-saving projects for key industries and 1.7 million USD will be spent on technical assistance for those projects.

"The project will remove barriers and create a favourable and sustainable environment for industrial enterprises to get access to medium- and long-term capital to implement their energy saving projects, contributing their efforts to the nation’s goal of saving energy, reducing greenhouse gas emissions and protecting the environment in Vietnam,” Vuong said.

He said that investing in energy-saving solutions can significantly reduce the increasing need for energy at a cost level that is a quarter of the spending on newly-established energy supply.

“According to the Vietnam National Energy Efficiency Programme (VEEP), the country has a lot of room for more energy-saving action,” the deputy minister said. By industry, the cement industry can save up to 50 percent of total energy consumption, and the figures for ceramics, coal, textile, steel and food processing industries range from 20% to 35%.

The Department of Energy Saving & Sustainable Development under the MoIT proposed the Government increase budget spending for energy saving projects in the period 2018-20.

Local enterprises need to be aware of the role of energy saving and efficiency in production and business activities, thus they need to further invest in technology and equipment renovation as the benefits of efficient energy management are always higher than the costs of investing and the costs can be offset by the returns on investment in a short period, the department said.

According to the MoIT agency, the national target programme on energy efficiency and utilisation in 2011-15 has saved 5.96 percent of total energy consumption, which is equal to saving over 11.8 million tonnes of oil.