Energy security and sustainable energy sector development have always been the top concern of the Government of Vietnam. Over the years, the Government has always made efforts to increase energy efficiency.
According to the project on adjusting the national electricity development planning for the period 2011-2020 with a vision to 2030 (referred to as the Adjusted Power Master Plan VII), from now to 2030, the energy sector must meet enough electricity consumption demand for the country’s socio-economic development goals with an average GDP growth rate of about 7%/year. Also under this scenario, the commercial electricity demand in 2020, 2025 and 2030 will be 235 billion kW h, 352 billion Kw h and 506 billion kW h.
Although the growth rate of national electricity demand in the coming periods will decrease significantly compared to the past, but it will still be very high compared to other countries in the world, specifically 10.6%/year (period 2016 – 2020), 8.5%/year (period 2021-2025) and 7.5%/year (period 2026 – 2030). If the current total installed capacity of the whole system is about 54 thousand MW (including renewable energy), it will reach about 60,000 MW by 2020 and is expected to reach 129,500 MW by 2030.
Looking at the chart of electricity demand and consumption in the coming years, it can be seen that this is not a small challenge for the energy industry in ensuring arrangement and mobilizing huge investment capital. to expand and upgrade the transmission and distribution grid, to invest and develop new power sources as well as to supply enough primary energy sources for power plants.
According to experts, in order to achieve the goal of saving 8-10% of total energy consumption compared to the normal development scenario by 2030, in addition to the efforts of central state management agencies, It is very necessary for the participation of local authorities at all levels because this is a decisive factor.
Appropriate policies, clear goals
Energy plays a special role in the socio-economic development of the country. Therefore, in recent years, the Party and State have paid special attention to improving the quality of energy use in the sustainable development policy of the energy sector in particular and national energy security in general, consider it a key element in sustainable development and enhance the country’s competitiveness. The target set is to save 8-10% of the energy needed to develop the country under the normal development scenario, equivalent to about 60 million tons of oil equivalent. More importantly, it is necessary to raise awareness, responsibility and change the behavior and habits of all agencies, organizations, communities and individuals in economical and efficient use of energy for sustainable development of Vietnam in the future.
In fact, for many years, as an industry management agency, the Ministry of Industry and Trade has implemented many specific solutions, from policy consulting, supporting in financial, technical, technology to promote information propaganda and have achieved certain results. Specifically, in the period 2006 – 2015, Vietnam saved about 16 million tons of oil equivalent, equivalent to about 103.7 billion kWh of electricity.
Although certain results have been achieved, according to many experts, energy use in Vietnam, for example in the business sector, still has many areas with large energy consumption. Energy costs for many industries/sectors of industrial production account for more than 60% of product costs. The reason is that many businesses are using old, outdated, and inefficient machinery and equipment in terms of energy use in addition to limited financial capacity to be able to convert technologies, techniques, replace old and outdated equipment with new and more efficient lines.
In Vietnam, a recent study by the World Bank and the Ministry of Industry and Trade on the possibility of allocating national targets on energy saving to localities in Vietnam showed that 63 provinces/cities directly under the central government can be divided into 7 groups of localities with different energy saving goals based on similar characteristics of energy saving potentials, economic structure, population characteristics… On that basis, the Ministry Industry and Trade together with localities determine annual and periodical goals for each province and city, attaching the responsibility of the local head to ensuring the implementation of the agreed target.
Breakthrough expectations on improving the quality of Vietnam’s energy use through the National Program for Thrifty and Efficient Use of Energy for the period of 2019 – 2030
On March 13, 2019, the Prime Minister issued the National Program on economical and efficient use of energy for the period of 2019-2030 in Decision No. 280/QD-TTg. The national program sets out two goals with a focus on improving the quality of energy use in all sectors/sectors of Vietnam, creating a premise for Vietnam’s energy sector to develop sustainably, stably, and serve effectively the socio-economic development, national defense and security of the country.
The first goal of the National Program is to save 8-10% of the energy needed to develop the country under the normal development scenario. The second goal is to change the energy use behavior of agencies, organizations, communities and individuals towards saving, efficiency and responsibility.
To accomplish the above goals, according to experts, there are 03 fundamental solutions that Vietnam needs to persistently apply: (i) Integrating the goal of saving electricity, using energy economically and efficiently into in the economic restructuring plan. Change the economic structure towards harmonization, sustainability, limit and eliminate the promotion of economic growth based on energy consumption. It is necessary to review the development needs and structure of energy consumption of each sector, each field in order to shape the national economic structure with little or no development based on energy consumption; (ii) Integrate the goals of electricity saving, economical and efficient use of energy in the national technical and technological innovation strategic plan.
Technological innovation must be closely associated with the element of economical and efficient use of energy, saving electricity. Do not import outdated, energy-consuming and high-consumption technologies and equipment into Vietnam. Develop a roadmap to replace old technologies, techniques, machines and equipment with low energy efficiency and low electricity use. (iii) Integrating the goal of saving electricity, using energy economically and efficiently into the strategy of building and developing Vietnamese culture and people to meet the requirements of sustainable development of the country. Saving electricity, using energy economically and efficiently must become the civilized characteristics of the new Vietnamese people. Propaganda, training, and improving the awareness of individuals and communities about saving electricity and using energy economically and efficiently must be closely linked with the development of Vietnamese people in order to build a new society. be responsible for national energy resources, for future generations in conserving energy resources.
Along with the Law on Economical and Efficient Use of Energy promulgated in 2010, Resolution 55-NQ/TW dated February 11, 2020 of the Politburo on the orientation of Vietnam’s national energy development strategy to 2030, and outlook to 2045, Directive No. 20/CT-TTg dated May 7, 2020 of the Prime Minister on enhancing electricity saving in the period of 2020-2025, the birth and implementation of the National Program on economical and efficient use of energy in the period of 2019 – 2030 shows the consistent strategic vision and policies of the Party, State and Government of Vietnam in the field of economical and efficient use of energy