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Project: Promoting Energy conservation in Small and medium scale enterprises in Vietnam

This project report highlights the achievements and insights from the PECSME project in Vietnam. It covers project objectives, implementation details, remarkable results, impacts, and lessons learned. The project aimed to remove barriers to energy management systems, reduce GHG emissions, and benefit small and medium-scale enterprises in various sectors. Key outcomes include policy developments, training programs, project implementations, and energy savings.

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Project: Promoting Energy conservation in Small and medium scale enterprises in Vietnam

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  1. MINISTRY OF SCIENCE AND TECHNOLOGY GEF- UNDP PECSME Project: Promoting Energy conservation in Small and medium scale enterprises in Vietnam Results and lessons learnt NGUYEN BA VINH PROJECT MANAGER Sub-regional Workshop for GEF Focal Points in Asia Hanoi, Vietnam, 10-12 March 2010

  2. Results and lessons learnt in PECSME implementation Content: • Introduction of PECSME • Results of project implementation • Lessons learnt

  3. 1. Introduction of PECSME • Project name: “Promoting Energy Conservation in Small and Medium Scale Enterprises” (PECSME) • Implementing duration: 2006 – 2010 (5 years) • Total Fund: USD 28,7 million, including: • Globe Environment Facility (GEF) funds: USD 5.5 million • Local and state sectors: USD 3.7 million • Business sector (Banks and Enterprises): USD 19.1 million • Implementing agency: UNDP VN • Implementing Partner: Ministry of Science and Technology - VN

  4. 1. Introduction of PECSME • Project objectives: Remove barriers to application of energy management systems and EC and EE Technologies => Reduction of GHG emission • 500 projects need to be implemented • 136.000 TOE need to be saved • 537 thousand tons of CO2 need to be reduced for the period 2006 - 2010 • Beneficiaries: Small and medium scale enterprises in 5 sectors: brick, ceramics, textiles, paper& pulp and food processing.

  5. 1. Introduction of PECSME Program components ( 6 ) • EC & EE policies and institutional support program • EC&EE communication and awareness program • EC & EE technical capacity building program • EC & EE services development program • EC&EE Financial support program • EC&EE Demonstration and replication program

  6. 2. Remarkable results of project for the period 2006-2/2010 • Support to develop the system of legal documents for energy conservation promotion: • Energy conservation law is under procedure for approval by National Assembly • Support Policies on energy conservation have been issued in more than 11 provinces. • System of agencies/organizations associated activities in PECSME was set up. • Improve awareness on EC & EE for SMEs, trade villages and energy efficiency service providers (EESPs);

  7. 2. Remarkable results of project for the period 2006-2/2010 • The staff of 25 EESPs trained on energy audit and EC project consultancy provision; provide training for more than 1,000 SMEs on EC technology operation; • The Loan Guarantee Fund (LGF) (total capital of US$ 1.7 million) has been effectively operated, guaranteed for 42 SMEs with total value of 27.3 billion of Vietnames Dong • 400 projects have been implemented, 120 projects are being implemented => savings of 165,000 TOE, reduction of 643,000 ton CO2. • Formation of energy conservation market: involvement of SMEs, EESPs, bank/credit institutions, the government (issued policies and institutional support).

  8. 2. Remarkable results of project for the period 2006-2/2010 PECSME • Number of Projects implemented and on-going by industrial sector

  9. 2. Remarkable results of project for the period 2006-2/2010 Result of Energy savings and CO2 emission reductions from implemented projects

  10. 2. Remarkable results of projectimplementation for the period 2006 - March/2010 • Results for loans and loan guarantees • Total fund of LGF is USD 1.7 million x 18,000 VND/ 1 USD => Total capital of Loan Guarantee Fund is 30 billion Vietnamese dong.

  11. 2. Remarkable results of project for the period 2006-2/2010

  12. 2. Remarkable results of project for the period 2006-2/2010

  13. 2. Remarkable results of project for the period 2006-2/2010

  14. 2. Remarkable results of project for the period 2006-2/2010 Impacts by PECSME: • Contribution to hunger eliminate and poverty reduction: create jobs for: • 10,000 jobs with labour income from 1.5 to 2.5 VND million per month . • Reduce environment pollution: 643,000 ton of CO2 emission has been reduced by 50% coal consumption level decrease from application of VSBK technology, replace traditional kilns burning with woods and coals ... By LPG kiln in ceramic sector • Contribution to energy security: 156,000 TOE saved. • Facilitate the energy conservation market transformation that including different stockholder's involvement: Energy Efficiency service providers (EESPs), financial providers, SMEs, EC & EE technology providers, government organizations.

  15. 3. Lessons learnt • Project objectives, activities have met the essential needs of SMEs so they have actively participated in • Reduce production costs, increase productivity and product quality, enhance competitiveness. • Loans and loan guarantee implementation of project. • Technological innovation to save energy is of decisive significance for SMEs to improve their productivity, product quality, increasing competitiveness • Policies, institutions on EC & EE should been preceded to create favourable environment for SMEs to project implementation

  16. 3. Lessons learnt • Local governments in participating provinces has played an important role in assisting EC&EE project implementation in their areas • Issue local supporting policies and initiatives • EC&EE institutional development 5. Energy service providers - the bridge for SMEs to get EC technology – should get more support for it’s development. • Enhance EESPs capacity in the provision of turn key consultancy service for SMEs • Turnkey Technology transfer by implementing Energy performance contract (EPC) • Loans support and loans guarantee.

  17. Ceramic kiln of 26 m3 at Chu Đậu

  18. The first batch of a ceramic production household at Bat Trang

  19. Project Evaluation Team of the Government and UNDP at Bat Trang

  20. Brick kiln with 3 burning chambers at Hai Duong 3

  21. Demonstration at Binh Duong province

  22. Demonstration at Binh Duong Province

  23. Signing ceremony of MOU on Loan Guarantee Fund Management

  24. Brick shape creating assembly at Demonstration at Binh Duong province

  25. Project Management Unit “Promoting Energy Conservation in Small and Medium Scale Enterprises in Viet Nam” Ministry of Science and Technology -------------------------------------------------------- Address: 65 B Tô Hiến Thành street, Hai Ba Trung District, Hanoi Telephone: (84-4) 39783574 Fax: (84-4) 39783573 Website: www. ecsme.com.vn

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