Renewable Energy and Energy Efficiency (4E) – Phase II

Context

The Vietnamese economy is one of the most dynamic in Asia. The rapid economic growth is closely linked to the expansion of the energy sector. Approximately four gigawatts of electricity have to be added each year in order to meet the demand for electricity. Promotion of renewable energy deployment and greater energy efficiency (EE) are therefore important in contributing to a reliable energy supply in Viet Nam.

The Vietnamese Government has formulated ambitious targets for renewable energy (RE) development in its RE Development Strategy, aiming to generate 6.5 per cent of the total electricity production from renewables by 2025 and 10.7 per cent by 2030. In its environmental protection commitments (Nationally Determined Contributions, NDCs) following the UN Climate Conference in Paris (COP21), the Vietnamese Government stressed the importance of increasing energy efficiency and thereby reducing greenhouse gas emissions. 

An overarching policy framework is therefore in place, providing for mandatory energy audits, national targets in the field of renewables, and feed-in tariffs for related technologies. Viet Nam is also developing several major pilot projects for the production of renewable energy and starter models for energy efficiency services.

In order to guarantee the energy supply and security both now and in the future, however, expertise and knowledge must be further developed at all decision-making levels. This will include skills in political strategy, investment planning and project development.

Objective

The energy sector governance is enhanced, and the regulatory framework and legal basis are in place for the large-scale expansion of renewable energy as well as the implementation of energy efficiency measures and for the compliance with the climate change commitments of Viet Nam. Further depth has been added to the specialist knowledge of decision-makers for the successful formulation and implementation of policy guidelines in the sector.

Approach

Under the BMZ-funded second phase of the 4E Project, further development of RE and EE is focused on strengthening the legal framework for RE and EE as well as enhancing the human capacity of the related active stakeholders.

Renewable energy: The project will boost the potential and capabilities of the Electricity and Renewable Energy Agency within the Ministry of Industry and Trade (MoIT) to improve the governance of the energy sector in Viet Nam. Furthermore, the project will improve the capacities among key enterprises in the Vietnamese electricity sector by further developing their technology-specific competences with a focus on photovoltaic (PV), but also for other technologies.

Energy efficiency: The project will support the further development of the expertise of the Department of Energy Efficiency and Sustainable Development (DEESD) in the Ministry of Industry and Trade and of energy consumers served by the industrial service providers and utility companies. The activities will include the development of a database for energy efficiency and energy performance indicators. Managers in the energy sector will gain access to international expertise with regard to policies designed to increase energy efficiency.

Raising awareness: The aims to provide public institutions with better instruments for target group-oriented communication with regard to RE and EE. Effective public relations, for instance in form of campaigns for targeted influencing of decision-makers or the overall improvement of RE and EE image, will attract the attention of key multipliers and expand the societal support base for transforming the electricity sector.

The second phase of 4E includes a co-financing component with the EU “Technical Assistance (TA) for the Implementation of the EU-Vietnam Energy Facility” (in short: TA for EVEF), which thematically reinforces and complements 4E BMZ component’s fields of action. The EVEF is aimed at supporting the Ministry of Industry and Trade and non-Ministry institutions in the energy sector with technical assistance focusing on regulatory framework improvement, strengthening technical and methodological capacities in RE, EE, energy access and energy data and statistics.

Furthermore, by hosting the Secretariat of the Viet Nam Energy Partnership Group (VEPG), the project plays a key role in supporting and coordinating a continuous political dialogue in the energy sector between the Government of Viet Nam and international development partners. Thematic focus areas of this dialogue include Renewable Energy, Energy Efficiency, Energy Sector Reform, Energy Access and Energy Data and Statistics.

Part of the EVEF is monitoring of Sector Reform Contract Implementation, which aims at supporting the development and implementation of a monitoring approach for the European Union’s budget support on enhancing access to sustainable energy in rural areas of Viet Nam. The EVEF also carries out communication and visibility activities as a cross-cutting element to advocate for the Project, its activities and the whole EU Energy Sector Policy Support programme.