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Energy management - Key to sustainable development for enterprises

08/07/2022

Good energy management practices not only save cost, optimize production, and enhance productivity but also help enterprises meet the authorities’ requirement of carbon emission reductions.

While there is a surge in fuel costs worldwide, energy management for enterprises comes back to the top concern due to the increase-high demand for energy in Vietnam and other developing countries for economic recovery. 

For businesses, good energy management practices would save cost, optimize production and productivity, hence improving the business’s competitiveness in the market. It is estimated that energy-saving methods could conserve around 10-20% of energy investment. Besides, it also helps enterprises meet the requirement of cutting gas emissions, hence contributing to ensuring the energy security target as well as the Vietnam Government’s net zero goal. 

However, there is a fact that energy management in enterprises generally is not as efficient as it should be. As Mr. Trinh Quoc Vu, Deputy Director of EESD (Energy Efficiency and Sustainable Development Department - Ministry of Industry and Trade) mentioned, the culprit behind this is insufficient awareness of energy management. It resulted in doubt in investing in building energy efficiency systems. 

Mr. Trinh Quoc Vu, Deputy Director of Energy Efficiency and Sustainable Development Department - Ministry of Industry and Trade.

This idea is agreed upon by Mr. Dong Mai Lam, General Director of Schneider Electric in Vietnam and Cambodia. “To design an efficient energy management system needs not only technical sufficiency but also awareness raising.”, said Mr. Lam.

From businesses’ perspective, enhancing energy management quality is based on four main pillars: data metering and collecting, data analysis for solutions, energy use optimization, and implementation monitoring.

From the authorities’ perspective, Mr. Vu mentioned incentive schemes to promote good practices and the sanction mechanism if violating the regulations to ensure effective implementation.

Moreover, Mr. Vu emphasized the role of activities to support enterprises in building energy management systems and applying energy efficiency methods. Those would contribute to cutting energy consumption at the enterprise and national levels, preserving the national energy and reducing greenhouse gas emissions. In detail, from 2014, MOIT has designed regulations on energy consumption norms for several sub-sectors, which are intensive energy use, including chemicals, paper, plastic, beverage, etc. Besides, the Ministry of Transport and Ministry of Construction issued regulations on ECN for building materials manufacture and related fields. 

Vietnam’s industry now accounts for more than 47% of national total energy consumption, with the potential of energy efficiency up to 30-35%.

Mr. Trinh Quoc Vu bold, “In the upcoming time, authorities and enterprises should have practical actions and tight planning for process design and look for appropriate energy management methods toward sustainable development. At the same time, Ministries and provinces need to promote energy efficiency in their homes.”

With those solutions, MOIT hopes to assist enterprises in enhancing their energy management performance as well as put more pressure on key energy consumers to boost up their energy management and efficiency.

Vietnam’s industry now accounts for more than 47% of national total energy consumption, with the potential of energy efficiency up to 30-35%. Hence, enhancing energy efficiency methods among production enterprises plays an essential role in social-economic development, and most important for their own sustainable development. 

For years, MOIT has supported enterprises in boosting energy management through various funding sources. Some of them include activities under the Vietnam Energy Efficiency for Industrial Enterprises Project in 2017, funded by WorldBank. Recently, enterprises have had more opportunities to access guaranteed loans from the Risk Sharing Facilities, a component of a project funded by the Green Climate Fund through WorldBank, which aims to boost energy efficiency investment for industrial companies. The scale of the RCF is up to USD 75 million. Besides, the Project has another technical support component for enterprises, which values USD 8.3 million. 

To Quyen edited | Giang Nguyen translated



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