The 38 th APEC EWG Meeting 18~19 November, 2009 Bali, Indonesia Kenji Kobayashi President Asia Pacific Energy Research Centre Peer Review on Energy Efficiency in Viet Nam

Part 1: Vietnam Peer Review Process Review Team Members Activities Part 2: The Contents of Draft Final Report of Peer Review in Viet Nam Outline Major Features of EE Improvement in Viet Nam Recommendations Outline

Review Team Members KENJI KOBAYASHI, Peer Review Team Leader, President of the Asia Pacific Energy Research Centre (APERC); BRIAN T. CASTELLI, Executive Vice President, Programs and Development. Alliance to Save Energy, U.S.A; CHANDRAN SUNDARAJ, Senior Researcher at the Asia Pacific Energy Research Centre, (APERC); CONNY K. WACHJOE, Senior Lecturer at the Bandung State Polytechnic, and Senior Researcher at Centre for Research on Energy Policy, Bandung Institute of Technology, Indonesia; FRANCIS XAVIER JACOB, Director of Economic Regulation and Industry Development of the Energy Commission, Malaysia; Vietnam Peer Review process (I)

MASHATOSHI SHINAGAWA, Senior Policy Advisor International Affairs Division, Ministry of Economy, Trade and Industry (METI), Japan; SOMMAI PHON-AMNUAISUK, Senior Project Manager, International Institute for Energy Conservation (IIEC), Asia Regional Office, Thailand; TRAN THANH LIEN, Research Team Leader at the Asia Pacific Energy Research Centre, (APERC); and WONG YEW WAH, Associate Professor at the Nanyang Technological University, Singapore. Vietnam Peer Review process (II)

Activities 8 June (Monday)  Meeting with Ministry of Industry & Trade (MOIT) –Overview on energy and energy efficiency policies –Organization of MOIT and related agencies on energy efficiency –Program on energy efficiency improvement; discussion on energy efficiency goals and action plans  Meeting with the team leader of the Study on EE&C Master Plan in Vietnam (under JICA) –Objectives and major contents of EE&C Master Plan Vietnam Peer Review process (III)

Activities 9 June (Tuesday)  Meeting with Ministry of Science & Technology –Energy Efficiency Program for small and medium enterprises: (PECSME Program) –Standard and Labeling Program (Vietnam Standard and Quality Center)  Meeting with Ministry of Transport –Activities and policy on EE in the transport sector  Meeting with Ministry of Construction –Building codes and activities on EE in the building sector Vietnam Peer Review process (IV)

Activities 10 June (Wednesday)  Meeting with Electricity of Viet Nam and Hanoi Power Company –EE activities and policy of power sector –Demand Side Management Programs  Meeting with Institute of Energy (IE) –Energy and RE Master Plan, Power Master Plan, EE Database  Meeting with EE Center of Hanoi – Energy efficiency activities and program in Hanoi City Vietnam Peer Review process (V)

Vietnam Peer Review Process (VI) Activities 11 June (Thursday)  Visit steel factory (Hoa Phat Group) 12 June (Friday)  Discussion with Energy Efficiency & Conservation Office (EECO) about the preliminary report  Meeting with Vice Minister of MOIT-Mr. Bui Xuan Khu and other senior officers from MOIT –Presentation on the preliminary report with recommendations

The Contents of Draft Final Report of Peer Review in Viet Nam Outline 1.Institutional Context 2.Energy Efficiency Goals and Strategy 3.Energy Data Collection and Monitoring 4.Policy Measures-Sectoral Analysis: Industry, Electricity, Transport and Residential & Commercial Sector 5.Appliances and Equipments 6.Energy Efficiency Related R&D

The Contents of Draft Final Report of Peer Review in Viet Nam Major Features of EE Improvement in Viet Nam 1.EE Policy Framework and Institution Legal documents: Decree on EE&C; Guideline for EE standard and labeling of appliances; building code, etc. Institution: EECO, National Steering Committee, EE centers were established. 2. Programs and Projects on EE Improvements DSM phase 1&2; the Pilot EE Program (CEEP); Promoting energy conservation in small and medium scale enterprises (PECSME), and The National Energy Efficiency Program (VNEEP), launched in 2006 covering EE fields: Legal framework, education and information, energy efficiency equipments, industry, building and transport sectors.

The Contents of Draft Final Report of Peer Review in Viet Nam Major Findings -There is a gap between the planning and implementation- on-the ground of EE programs; -Shortage of human and financial resources to carry out effectively the planned EE programs; - Lack of a comprehensive monitoring and evaluation system on the EE Programs; and -Insufficient coordination among responsible ministries and agencies in achieving the objectives of EE programs.

Recommendations Total 40 recommendations Institutional Context: The r ecommendations are: 1.Enact and adopt the Law of Energy Conservation and Efficient Use as early as possible; 2.Establish an energy efficiency policy coordination committee at interministerial level of high level in the government.

Recommendations EE Goals and Strategy: The Recommendations are : 3. Integrate sectoral- based energy efficiency goals relating to the national aspirational goals; 4. Develop a national communication strategy and energy efficiency educational program; 5. Develop a clear and concise road map for six components in the VNEEP to converge on the national aspirational goals; 6. Coordinate actions and efforts of each leading Ministries;

Recommendations Energy Data Collection and Monitoring: The recommendations are: 7. Establish an Energy Database Center including the EE team; 8. Designate major industries and enterprises in the list for the designated statistics; 9. Assign a lead role for monitoring and evaluation to a well-qualified organization; 10. Address the importance of EE M&E to any ongoing project;

Recommendations Industry Sector (1): The r ecommendations are: 11. EE&C Programs should have targets and be measurable, achievable and time defined; 12. Build up capacity for personnel for industrial energy audits; Provide, for a limited time, subsidized energy audit, especially for small and medium enterprises (SMEs).

Recommendations Industry Sector (2) 13. MOIT and other relevant governmental agencies may have: Some public fund to implement EE&C measures recommended by energy audit; and Awareness programs for financial institutions. 14. Formulate and enforce legal provision to make energy management mandatory for designated consumers; 15. Initiate and maintain energy intensity benchmarking for industrial sub sectors;

Recommendations Industry Sector (3) 16. Look into providing technical support to enable local manufacture of energy efficient equipments and appliances; 17. Communicate large energy intensive enterprises to deepen their on-going energy management efforts corresponding EE&C National Programs; 18. Encourage large energy intensive enterprises;

Recommendations Electricity Sector (1): The recommendations are: 19. Develop a suitable mechanism for enhancing private sector participation on power plant development including energy pricing policy; 20. Improve the existing power plant efficiency by implementing efficient power plant technologies; 21. Establish a long term power development program for reducing transmission & distribution losses (for exp )

Recommendations Electricity Sector (2) 22. Improve load research activities so as to identify proper DSM measures; 23. Give priority on DSM/EE implementation by having a separate implementation unit; 24. Establish a sustainable mechanism for DSM implementation;

Recommendations Commercial and Residential Sector: The recommendations are: 25. Develop sub-sector level data on residential energy end-use by appliances; 26. Set a priority in capability building in order to expedite implementation and enforcement of the Building Energy Codes; Prioritize and set out the time frame of their projects for their energy efficiency program

Recommendations Transport Sector: The recommendations are: 27. Enact and enforce fuel economy standard on new vehicle fleets entering the market; 28. Formulate a tax system for vehicle fleets; 29. Develop a comprehensive roadmap for sustainable transport system; 30. Develop a database for transport sector;

Recommendations Appliances and equipments (1) : The recommendations are: 31. Enforce the MEPS and the energy performance labeling for the designated equipments under the legal documents; 32. Integrate and strengthen the planning and implementation of MEPS and labeling programs; 33. Collect and analyze energy- efficient appliances and equipment sales data periodically;

Recommendations Appliances and Equipments (2) 34. Review periodically the list of designated equipments and appliances; 35. Provide appropriate incentives for purchasing high energy-efficient appliances and equipments; 36. Develop local human capacity and technical needs for appliances and equipments standards and labeling program;

Recommendations Energy Efficiency-Related R&D: The recommendations are: 37. Incorporate energy efficiency improvement R&D in the National Science and Technology Plan; 38. Synergize R&D efforts with the existing energy efficiency improvement program; 39. Focus R&D efforts on applied science; 40. Facilitate industry-academia tie-ups with suitable funding mechanism.

Peer Review on Energy Efficiency in Viet Nam APERC Thank you very much for your kind attention.