A pilot implementation of the Energy Service Company (ESCO) through theproject on installing solar water heater systems for customers is one ofthe jobs that Vietnam Electricity Group will do this year to realisethe Power Saving Programme for the 2014-2015 period, according to theVietnam Economic News.
EVN’s Deputy General Director Nguyen TanLoc said the pilot implementation of the first phase of the ESCO projecthas been assigned to EVN’s Southern Power Corporation (EVN SPC) andprestigious ESCO companies in Vietnam who would install solar waterheater systems for customers with average electricity consumption ofover 20,000 kWh a month. They are mainly restaurants, hotels and luxuryresorts in southern provinces. EVN is expected to pilot 10 projects ofthis kind with total funding of about 12 billion VND (570,000 USD).
Itis known that the ESCO model has been applied in many countries. Thisenergy efficient business model requires little investment capital andis mutually beneficial.
ESCO provides comprehensive energysolutions, including designing and implementing energy efficiencyprojects, energy preservation projects, building energy infrastructureprojects for rent and implementing energy service package from settingup plans, installation, operation, maintenance to optimization offinancial contribution.
Two parties will make deals based on theenergy efficiency levels with clear commitments as they implement givenprojects. In other words, if enterprises invest in this system, ESCOguarantees to provide certain levels of energy efficiency as well asenergy auditing. After the initial investment is recovered, theenterprises will possess the whole ESCO system and it’s cheap energy. Intheory, an ECSO project is estimated to save up to 70 percent ofelectricity and reduce energy reliance on traditional resources, ensurecustomer safety and mitigate emissions to protect the environment.
EVN’spower saving programmes in the 2014-2015 period will focus on six keyissues, including directing and managing; replacing incandescent bulbswith compact alternatives; advertising solar water heaters; pilotingESCO model and promoting power saving campaigns between the Ho Chi MinhYouth Union and EVN.
Apart from economic efficiency from ESCO’senergy service projects, the model also brings environmental and socialeffects like reducing greenhouse gas emissions, creating jobs, raisingcustomer awareness on the project which leads to raising awareness ofthe community on energy efficiency.
Vietnam has huge energyefficiency potential, therefore, the pilot implementation of ESCO modelwill be a chance to review the effect, participation and response ofcustomers in the energy service market. It will provide a foundation tomake suggestions and appeals to agencies for support policies to expandand develop this model.
Along with the pilot ESCO implementation,this year EVN will also pilot a project on replacing incandescentbulbs with compact alternatives at dragon fruits farms in Binh Thuan,Tien Giang and Long An provinces. EVN and EVN SPC will subsidise 30percent of the costs for dragon fruits growers to buy compact bulbs andsockets, 100 percent of the expenses to recover incandescent bulbs andassist them to install safe lighting systems on their fruit farms.-VNA
EVN’s Deputy General Director Nguyen TanLoc said the pilot implementation of the first phase of the ESCO projecthas been assigned to EVN’s Southern Power Corporation (EVN SPC) andprestigious ESCO companies in Vietnam who would install solar waterheater systems for customers with average electricity consumption ofover 20,000 kWh a month. They are mainly restaurants, hotels and luxuryresorts in southern provinces. EVN is expected to pilot 10 projects ofthis kind with total funding of about 12 billion VND (570,000 USD).
Itis known that the ESCO model has been applied in many countries. Thisenergy efficient business model requires little investment capital andis mutually beneficial.
ESCO provides comprehensive energysolutions, including designing and implementing energy efficiencyprojects, energy preservation projects, building energy infrastructureprojects for rent and implementing energy service package from settingup plans, installation, operation, maintenance to optimization offinancial contribution.
Two parties will make deals based on theenergy efficiency levels with clear commitments as they implement givenprojects. In other words, if enterprises invest in this system, ESCOguarantees to provide certain levels of energy efficiency as well asenergy auditing. After the initial investment is recovered, theenterprises will possess the whole ESCO system and it’s cheap energy. Intheory, an ECSO project is estimated to save up to 70 percent ofelectricity and reduce energy reliance on traditional resources, ensurecustomer safety and mitigate emissions to protect the environment.
EVN’spower saving programmes in the 2014-2015 period will focus on six keyissues, including directing and managing; replacing incandescent bulbswith compact alternatives; advertising solar water heaters; pilotingESCO model and promoting power saving campaigns between the Ho Chi MinhYouth Union and EVN.
Apart from economic efficiency from ESCO’senergy service projects, the model also brings environmental and socialeffects like reducing greenhouse gas emissions, creating jobs, raisingcustomer awareness on the project which leads to raising awareness ofthe community on energy efficiency.
Vietnam has huge energyefficiency potential, therefore, the pilot implementation of ESCO modelwill be a chance to review the effect, participation and response ofcustomers in the energy service market. It will provide a foundation tomake suggestions and appeals to agencies for support policies to expandand develop this model.
Along with the pilot ESCO implementation,this year EVN will also pilot a project on replacing incandescentbulbs with compact alternatives at dragon fruits farms in Binh Thuan,Tien Giang and Long An provinces. EVN and EVN SPC will subsidise 30percent of the costs for dragon fruits growers to buy compact bulbs andsockets, 100 percent of the expenses to recover incandescent bulbs andassist them to install safe lighting systems on their fruit farms.-VNA
