Energy Efficiency Services Provision Support Program
Policy measure

According to the Global Environment Facility (2004), 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, 2004). 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, 2004).


Component 4 of the PECSME programme Energy Efficiency Services Provision Support Program entails “capacity building and support for a credible high quality energy-efficiency services provision industry, including the enhanced supply of energy efficient equipment, with support from public energy conservation centers, universities, polytechnics and technician training providers” (GEF, 2004).


The total costs of the PECSME programme amount to USD 29.227,250, whereas Component 4 will cost USD 2.162,000 to implement (GEF, 2004).

Implementation

The implementation measures include (UNDP, 2008):

  • “Enhanced commercial energy efficiency services provision (EESP) industry effectively marketing services to SMEs and leading to wider use of energy audits.

  • Increased uptake of energy audit recommendations, and delivery of specialist services such as plant design and process integration, energy monitoring and plant commissioning, establishment and implementation of planned preventive maintenance regimes by year 3.”

Challenges

According to UNDP (2008), the success of the implementation depends on:

  • “Existing EESPs interested in receiving technical assistance.

  • Energy consultants, financers, and entrepreneurs interested in forming new EESPs.

  • EESPs provide reliable and quality energy services.

  • SMEs aware of EC&EE benefits of using EESPs.

  • Local equipment suppliers interested in industrial equipment energy performance improvement.”

Outcomes

The following outcomes have been identified for Component 4 of the PESCME programme (UNIDO, 2008):


The EESP Training Program:

  • “60 energy consultants from EESPs trained on EC engineering and financial arrangement for investment projects.

  • 15 managers of potential EESPs trained on developing business plans and designing energy efficiency service packages.

  • 10 EESPs that have prepared business plans following the model presented in the training course by Year 3.

  • 3 new EESP businesses that are legally established.

Project assistance has been provided for EESP operations:

  • 5 technical assistance services provided to local EESPs in making bankable project proposals, business plans and in securing financing for SME clients.

  • On-job training provided to local EESPs in EC&EE project development and implementation

  • EESP energy efficiency engineering design tools and model marketing strategies developed

  • 4 EESPs utilizing the EE design tools and marketing strategies.

Model contracts to deliver EESP services to SMEs completed and executed:

  • 50 EESP contracts for providing energy efficiency services marketed and implemented with SMEs during Year 3 and 5.

Assessment of local capabilities for EE equipment supply completed:

  • Evaluation of capabilities of local EE equipment provision prepared by mid-Year 2.”

References

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


UNDP (United Nations Development Programme), 2008. Evaluation of UNDP/GEF Project: Vietnam – Promoting Energy Conservation in Small and Medium Scale Enterprises (PIMS 2057). Mid-Term Evaluation Report.