Demand-Side Management and Energy Efficiency Project
Policy measure

The World Bank in 2003 implemented, the USD 20 million Demand-Side Management and Energy Efficiency Project in Viet Nam, supported with funds from the International Development Association (IDA) and Global Environmental Facility (GEF) (APERC, 2009).


The objectives of the project were to:

  • “Develop and expand demand-side management (DSM) business programs and test new market transformation efforts within the national electric utility, Electricity of Vietnam (EVN).

  • Develop sustainable business models and mechanisms to support energy efficiency energy efficiency retrofit investments in commercial and industrial facilities.

The project was to promote the more efficient use of electricity and reduction in peak loads in Vietnam which will ease constraints on the national system, reduce the need for new investments and provide the poor with great access to energy access.” (World Bank, 2003)

Implementation

The project consisted of two components: (i) a second phase DSM component under EVN; and (ii) a pilot commercial energy efficiency program under the Ministry of Industry (MoI).


The main focus of the first component was to implement EVN's DSM business plan developed in Phase 1 by (World Bank, 2003):

  • Expanded time-of-use (TOU) metering by procuring and installing TOU meters.

  • Pilot direct load control (DLC) programme introduced by using ripple control systems.

  • Compact fluorescent lamp (CFL) promotion.

  • Fluorescent tube lamp (FTL) market transformation.

  • Supporting programmes and technical assistance for DSM efforts.

The second component “sought to test appropriate business models and mechanisms to catalyze a service market to support energy efficiency investments by supporting commercial service providers or "project agents" in all phases of energy efficiency project identification, development and implementation”. (World Bank, 2003) 


Specific activities under this component were  (World Bank, 2003):

  • “Comprehensive project agent training program to provide basic technical, financial and business knowledge to facilitate the development and implementation of project proposals as well as some customized technical assistance to develop their marketing and business plans.

  • Subproject audit and investment grants for energy audits and investments to project agents and their customers.

  • Program marketing, monitoring and administration including program marketing.”

Challenges
No identified challenges.
Outcomes

As of 2007, the mid-term results of the DSM and energy efficiency project were (USAID, 2007):

  • The EVN installed TOU meters for 60.000 customers and distributed 300.000 CFLs. By 2007, the CFLs led to a reduction in peak load of 14 MW, while the TOU reduced it with 45 MW.

  • An additional 700.000 CFLs were produced of which 300.000 had been sold by 2007.

According to APERC (2009), “an independent evaluation of EVN’s programs reported almost 500 GWh in annual energy savings and ~91 MW in peak load reductions to date”.

References

APERC (Asia Pacific Energy Research Centre), 2009. Peer Review on Energy Efficiency in Vietnam: Final Report. Tokyo. Available at: www.ieej.or.jp/aperc/PREE/PREE_Vietnam.pdf.


USAID (US Agency for International Development), 2007. Annex 6: Vietnam Country Report – From Ideas to Action: Clean Energy Solutions for Asia to Address Climate Change. Washington, DC.


World Bank, 2002. Project Appraisal Document on a Proposed Credit in the Amount of SDR 177.90 Million (US$225 Million) to the Socialist Republic of Vietnam for a System Efficiency Improvement, Equitization & Renewables Project. Energy Sector Development Unit, East Asia and Pacific Region.


World Bank, 2003. Demand-Side Management & Energy Efficiency Project. Projects & Operations. Available at: http://web.worldbank.org/external/projects/main?pagePK=64312881&piPK=64302848&theSitePK=40941&Projectid=P071019.