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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 PR OJECT MANAGER. Sub-regional Workshop for GEF Focal Points in Asia

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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


Results and lessons learnt in pecsme implementation
Results and lessons learnt in PECSME implementation

Content:

  • Introduction of PECSME

  • Results of project implementation

  • Lessons learnt


1 introduction of pecsme
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


1 introduction of pecsme1
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.


1 introduction of pecsme2
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


2 remarkable results of project for the period 2006 2 2010
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);


  • 2 remarkable results of project for the period 2006 2 20101
    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).


    2 remarkable results of project for the period 2006 2 20102
    2. Remarkable results of project for the period 2006-2/2010

    PECSME

    • Number of Projects implemented and on-going by industrial sector


    2 remarkable results of project for the period 2006 2 20103
    2. Remarkable results of project for the period 2006-2/2010

    Result of Energy savings and CO2 emission reductions from implemented projects


    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.


    2 remarkable results of project for the period 2006 2 20104
    2. Remarkable results of project for the period 2006-2/2010


    2 remarkable results of project for the period 2006 2 20105
    2. Remarkable results of project for the period 2006-2/2010


    2 remarkable results of project for the period 2006 2 20106
    2. Remarkable results of project for the period 2006-2/2010


    2 remarkable results of project for the period 2006 2 20107
    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.


    3 lessons learnt
    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


    3 lessons learnt1
    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.










    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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