EC&EE Demonstration Program
Policy measure

According to the Global Environment Facility (2004a), the programme Promoting Energy Conservation in Small and Medium Enterprises (PECSME) was approved in 2003 as part of the Vietnam Energy Conservation Program (VECP). The programme was carried out jointly with the United Nations Development Program (UNDP).  

The aim of the PECSME programme is to remove barriers to the uptake of energy conservation technologies, improve management's focus on energy cost reductions, enhance technician training in energy conservation practices and improve the operation of energy using equipment by SMEs (GEF, 2004a). The PECSME programme focuses on the following five SME sectors: bricks, ceramics, textiles, paper and food processing. The total costs of the PECSME programme amount to USD 29.227.250 (GEF, 2004a).


Component 6 of the PECSME programme, EC&EE Demonstration Program, involved “technical support for the demonstration of the cost effectiveness and technical performance of new EC&EE technologies for replication in 500 SME EC&EE projects. The objective of the project was to demonstrate new EC&EE technologies in credible, monitored and evaluated projects completed by mid-year 3 leading to 400 sounds EC&EE investment projects presented to banks for loans by SMEs starting mid-3rd year.” (GEF, 2004a)

Component 6 will cost a total amount of US$ 18,855,000 to implement (GEF, 2004a)


Component 6 will “involve the demonstration of new EC&EE technologies in practical and representative SME applications, including their identification, cost-effectiveness evaluation, design, financing, tendering, implementation, commissioning, maintenance and housekeeping, documentation, dissemination, technical support, monitoring, evaluation and replication” (GEF, 2004b).

The activities initiated under Component 6 are (GEF, 2004b):

  • Conduct of comprehensive technical-economic feasibility analyses of potential EC&EE investment projects.

  • Identification and evaluation of demonstration requirements.

  • Identification and implementation of removal of demonstration project barriers.

  • Establishment of baseline data for demonstration sites.

  • Implementation of demonstration projects.

  • Monitoring and evaluation of the demonstration projects.

  • Provision of technical assistance for implementation of 500 EC&EE investments.

No identified challenges.

The outcome of this Component will, according to GEF (2004b), “be credible, monitored and evaluated demonstrated projects and the implementation of a subsequent replication pipeline of 500 sound EC&EE investment projects for SMEs to obtain loans from banks to implement. The replication projects will be identified through SME registration conducted by the five existing regional Energy Conservation Centers (ECCs) and DOSTs in other provinces.”


GEF (Global Environment Facility), 2004a. Promoting Energy Conservation in Small and Medium Enterprises. 5th JPO Regional Workshop, Hanoi, 17 June 2004. 

----, 2004b. Vietnam: Promoting Energy Conservation in Small and Medium Scale Enterprises (PECSME) – Project Brief. Available at: