Hong Kong– March 18-23, 2019

VIETNAM PROGRESS OF

ENERGY EFFICIENCY AND CONSERVATION

OUTLINES

I• VIETNAM ENERGY OUTLOOK- UPDATED

II• ENERGY EFFICIENCY AND CONSERVATION

FOR DEVELOPMENT IN VIETNAM

UPDATE ENERGY INFOMATION

UPDATED ENERGY INFORMATIONPopulation: 96.5 million persons;

Area: 331,698 km2;

Urban population: 32.9 million persons (35.1%);

GDP (nominal): US$240.5 billion → 2,580 US$ per capita;

GDP growth rate in 2018: 6.7%;

Primary energy consumption: ~78.3 MTOE (→ 835.7 kgoe per capita);

Total electricity consumption: 192.93 TWh → 2,031.74 kWh per capita;

Electrification rate: 99.37% of rural households (end of 2018);

SOCIO-ECONOMIC TRENDS

1,5

88

,64

6

1,6

99

,50

1

1,8

20

,66

7

1,9

23

,74

9

2,0

27

,59

1

2,1

57

,82

8

2,2

92

,48

3

2,4

12

,77

8

2,5

43

,59

6

2,6

95

,79

6

2,8

75

,85

6

3,0

54

,47

0

3,2

62

,47

9

8.4%

7.0%7.1%

5.7%5.4%

6.4% 6.2%

5.3% 5.4%

6.0%

6.7%6.2%

6.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% p

.a

Bn

. VN

D @

20

10

GDP and annual GDP growth rate

GDP GDP growth rate

GDP, 2.05

Population, 1.14

Urban population, 1.51

GDP per capita, 1.81

Electricity demand, 3.87

Primary commercial energy, 2.40

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2 0 0 5 2 0 0 7 2 0 0 9 2 0 1 1 2 0 1 3 2 0 1 5 2 0 1 7

Trends for major energy economic indicators (2005=1)

1. GDP growth rate for 2005-2017: 6.2% p.a;

2. In 2005-2017:

Electricity intensity with respect to GDP: 0.53 1.00 kWh/USD 2010

Electricity elasticity with respect to GDP: 1.94 times

ENERGY DEVELOPMENT TRENDS

Coal20.0%

Oil29.3%Gas

11.7%

Combustible

biomass35.4%

Hydro3.5%

2005

Coal35.9%

Oil26.9%

Gas10.3%

Combustible

biomass17.3%

Hydro9.5%

2017

Drivers for energy consumption: economic activities, recent industrial developments;

increased urbanization; enhanced energy access; improved living standard.

HHI (Herfindahl-Hirschman Index) represents diversification of fuel mix (HHI

0~10.000)

Data on primary energy supply are estimated for 2016 & 2017

IMPORTED ENERGY DEPENDENCY

7

• The country turned to

a net energy importer

by 2015 after being

net energy exporter

for a long period;

• Significant increase

in coal import in

recent years;

• Limit on coal export;

• Increased reliance

on imported fuels

for power

generation and

industries.

-21,023-19,581

-10,762-13,940

-7,867 -6,966 -8,059-6,535

-2,277

3,460

11,020 12,141

-40,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

KTO

E

Export Import Net import

-47.2%-42.7%

-21.8%-26.4%

-13.8% -12.2% -13.9% -11.0%-3.5%

4.9%

14.5% 15.5%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

%

VIETNAM: ENERGY TRANSMISSION SYSTEM

Vietnam Transmission System (Sep. 2016)

03 interconnected regions

500-220kV transmission grid

500 kV: 26 substations – 25800 MVA;

500 kV line: ~ 7360 km of line

Unit Quantity

500kV substation MVA 25800

500kV line km 7360

220kV substation MVA 42040

220kV line km 15800

Year North - Central Central - South

2015 1800 3500

2016 2000 4000

2017-2020 2400 4000

Transmission capacity

Large & Medium & Pump Strorage Hydro Power Plant

30%

Coal - fired Thermal Power Plant43%

Gas Turbine (LNG)15%

Import2%

Wind Power1%

Biomass1%

Solar2%

Small Hydro Power Plant6%

Renewable Energy11%

Large & Medium & PumpStrorage Hydro PowerPlantCoal - fired Thermal PowerPlant

Gas Turbine (LNG)

Import

Wind Power

Biomass

SYSTEM’S TOTAL INSTALLED CAPACITY IN 2020

P installed = 60GW

SYSTEM’S TOTAL INSTALLED CAPACITY IN 2030

Large & Medium & Pump Storage Hydro Power Plant

17%

Coal - Fired Thermal Power Plant42%

Gas Turbine (LNG)15% 3%Import

1%Wind Power5%

Biomass3%

Solar Power9%

Small Hydro Power Plant5%

Renewable Energy 16%

Large & Medium & Pump

Storage Hydro Power Plant

Coal - Fired Thermal Power

Plant

Gas Turbine (LNG)

Nuclear Power Plant

Import

Wind Power

Biomass

Solar Power

Small Hydro Power PlantPinstalled = 130GW

ENERGY EFFICIENCY AND CONSERVATION FOR DEVELOPMENT

IN VIETNAM

Content Unit 2015 2016 2017

Total primary energy

supplies

KTOE 70.588 77.402 80.38

Total energy end-users KTOE 59.47 62.35 65.67

Energy intensity kgOE/

1.000USD307.80 303.68 293.31

ENERGY-ECONOMIC INDICATORS IN VIETNAM, 2011-2015

Central Government

Ministry of Industry and Trade

Energy Efficiency and Sustainable Development

Dept.Local Govt.

DOIT

EECC

DOIT.

EECC

DOIT.

EECC

DOIT

EECC

Related Ministries

Functional Department

LEGAL FRAM IN ENEGY EFFICIENCY

THE INSTITUTIONAL

ACTIONS IN ENEGY EFFICIENCY

Vietnam National Energy Efficiency Program - VNEEP

VNEEP-I, 2006 – 2015:

Energy saving achieved is 3.4%; total energy saving achieved 4.9 million TOE

VNEEP - II, 2012 – 2015:

Energy saving achieved is 5.65%; total energy saving achieved 11.2 million TOE

VNEEP - III, 2019 – 2030 (March 13 2019):

Energy saving target is 8.0 – 10.0%; total energy saving: 60.0 million TOE

SPECIFICS OBJECTIVES IN VNEEP-31. Achieving the energy saving from 8 to 10% of total national energy consumption for the 2019 – 2030 period;

2. Reducing the power loss to below 6.0%;

3. Reducing the average energy consumption in industrial sectors/sub-sectors compared to the 2015 – 2018 period

(i) For the steel industry: from 5.00 to 16.50% depending on product type and production technology;

(ii) For the chemical industry: minimum 10.00%;

(iii) For the platics production industry: from 21.55 to 24.81%;

(iv) For the cement industry: minimum 10.89%;

(v) For the textile industry: minimum 6.80%;

(vi) For the alcohol, beer and soft drink industry: from 4.6 to 8.44% depending on product type and production scale;

(vii) For the paper industry: from 9.90 to 18.48% depending on product type and production scale;

4. Reducing 5% of gasoline, oil consumption in transportation compared to the fuel consumption demand forecast of the sector

until 2030; developing the regulation on fuel consumption level for 2-wheel motorbikes and cars of 9 seats and below which

are newly manufactured, assembled and imported

5. Achieving the target of 90% of industrial parks and 70% of industrial clusters accessing, applying EE&C solutions

6. Implementing energy labelling for 50% of building material products which require thermal insulation in buildings

7. Achieving the target of 100% of cities, provinces under the central government developing and approving local

plans/programs on EE&C

8. Training and awarding certificates to 5,000 energy managers/ energy auditors

THANK YOU