Speaker at the workshop on ESCO, a future business model for Vietnam held in HCM City on October 22. HCMCity (VNA) - There is great potential for the energy servicecompanies market to develop in Vietnam as power consumption is forecast toincrease sharply in the coming years, heard a workshop heard in HCM City onOctober 22.
According to Nguyen Dinh Hiep of the Vietnam Association of Science andTechnology for Economical and Efficient Use of Energy, in this context, theeconomical and efficient use of energy has become compulsory.
“Energyservice companies (ESCO) are one way to promote economical and efficient energyuse,” he said.
He said ESCO wouldprovide a comprehensive energy services package including energyefficiency consulting, planning, construction, installation, operation,maintenance, optimisation, and financial contribution, and apprise customersabout investment costs, energy saving results and investment risks.
“By applying the ESCO model, businesses can gain access to green solutions,equipment and technology innovation and achieve efficiency in investment,” hesaid.
It also helps businessesparticipate in national and international programmes and projects in theeconomical and efficient use of energy, contributing to environmentalprotection and coping with climate change, he added.
Public lighting, commercial and service buildings, industrial manufacturing,power distribution, and renewable energy are potential areas for ESCO investment.
Statistics show there are morethan 220 energy efficiency service suppliers and energy efficiency consultingfirms, but the number following the ESCO model is low.
Hiep said to boost ESCO activities, improving the institution and legalframework for it, developing a sustainable financial mechanism, and creatinglinkages between ESCO enterprises and credit institutions are imperative.
Markus Bissel, head of the component energy efficiency, renewable energy andenergy efficiency project, EU-Vietnam Energy Facility, GIZ Vietnam, said thatstill one of the highest energy intensities in Southeast Asia, the VietnameseGovernment faces many challenges to improve energy efficiency, particularly inthe commercial and industrial sectors.
“Even though the Vietnamese Government successfully implemented the VietnamEnergy Efficiency Programme 1 and 2 and is currently implementing No.3 withvery ambitious objectives, it is foreseeable that it is getting more and morechallenging to meet the increasing energy demand.”
Bisselsaid ESCO provide services related to energy efficiency and financing of energyefficiency measures.
“The ESCO model world-wide is adriver of investments in energy efficiency measures. And even in Vietnam, insome specific sectors, the ESCO model is successfully applied.”
Speakers at the workshop agreed that the model is still new in Vietnam and faceshurdles due to a lack of legal support, mechanisms and financial support forimplementation of energy-efficient projects and unavailability of manpower.
Besides, customers’ distrust, risks in undertaking energy efficiency projectsand businesses’ greater focus on boosting sales than reducing costs throughenergy savings are other obstacles to ESCO activities, they said.
The workshop heard about lessons learnt in other ESCO markets such as the USand China and the experiences in Vietnam from foreign experts andrepresentatives of local companies.
Organised by the EU-Vietnam Energy Facility project and the Ministry ofIndustry and Trade, the workshop, titled “ESCO, a future business model for Vietnam”,sought to share experiences in developing the model in Vietnam and raiseawareness of government management agencies so that an appropriate policyframework could be adopted in the future./.
According to Nguyen Dinh Hiep of the Vietnam Association of Science andTechnology for Economical and Efficient Use of Energy, in this context, theeconomical and efficient use of energy has become compulsory.
“Energyservice companies (ESCO) are one way to promote economical and efficient energyuse,” he said.
He said ESCO wouldprovide a comprehensive energy services package including energyefficiency consulting, planning, construction, installation, operation,maintenance, optimisation, and financial contribution, and apprise customersabout investment costs, energy saving results and investment risks.
“By applying the ESCO model, businesses can gain access to green solutions,equipment and technology innovation and achieve efficiency in investment,” hesaid.
It also helps businessesparticipate in national and international programmes and projects in theeconomical and efficient use of energy, contributing to environmentalprotection and coping with climate change, he added.
Public lighting, commercial and service buildings, industrial manufacturing,power distribution, and renewable energy are potential areas for ESCO investment.
Statistics show there are morethan 220 energy efficiency service suppliers and energy efficiency consultingfirms, but the number following the ESCO model is low.
Hiep said to boost ESCO activities, improving the institution and legalframework for it, developing a sustainable financial mechanism, and creatinglinkages between ESCO enterprises and credit institutions are imperative.
Markus Bissel, head of the component energy efficiency, renewable energy andenergy efficiency project, EU-Vietnam Energy Facility, GIZ Vietnam, said thatstill one of the highest energy intensities in Southeast Asia, the VietnameseGovernment faces many challenges to improve energy efficiency, particularly inthe commercial and industrial sectors.
“Even though the Vietnamese Government successfully implemented the VietnamEnergy Efficiency Programme 1 and 2 and is currently implementing No.3 withvery ambitious objectives, it is foreseeable that it is getting more and morechallenging to meet the increasing energy demand.”
Bisselsaid ESCO provide services related to energy efficiency and financing of energyefficiency measures.
“The ESCO model world-wide is adriver of investments in energy efficiency measures. And even in Vietnam, insome specific sectors, the ESCO model is successfully applied.”
Speakers at the workshop agreed that the model is still new in Vietnam and faceshurdles due to a lack of legal support, mechanisms and financial support forimplementation of energy-efficient projects and unavailability of manpower.
Besides, customers’ distrust, risks in undertaking energy efficiency projectsand businesses’ greater focus on boosting sales than reducing costs throughenergy savings are other obstacles to ESCO activities, they said.
The workshop heard about lessons learnt in other ESCO markets such as the USand China and the experiences in Vietnam from foreign experts andrepresentatives of local companies.
Organised by the EU-Vietnam Energy Facility project and the Ministry ofIndustry and Trade, the workshop, titled “ESCO, a future business model for Vietnam”,sought to share experiences in developing the model in Vietnam and raiseawareness of government management agencies so that an appropriate policyframework could be adopted in the future./.
VNA
