Denmark is committed to promoting sustainable energy in Vietnam with DEPP3

Expand cooperation on energy efficiency use

In order to promote energy efficiency use, especially for large-scale industrial enterprises that consume a lot of energy and fulfill commitments to the Paris Agreement, Prime Minister issued the Decision No. 280/QD-TTg approving the National Energy Efficiency Programme for the period of 2019 - 2030. The Program has been actively and synchronously implemented by the Ministry of Industry and Trade, with the goal of achieving energy savings of 5 to 7% of the total national energy consumption in the period from 2019 to 2025 and from 8 to 10% of the total national energy consumption in the period from 2019 to 2030 .

The Ministry of Industry and Trade has coordinated with the Danish Energy Agency of the Danish Ministry of Climate, Energy and Utilities and the Danish Embassy to implement the Vietnam - Denmark Energy Partnership Program, the DEPP period 2017 - 2020. The program has effectively supported Vietnam's National Energy Master Plan and the field of efficient use of energy.

At the end of the 2017-2020 period, the implemented results of the DEPP2 are evaluated as highly effective. The program has given policy recommendations to strongly promote renewable energy (RE) and energy saving, capacity building training and tools to implement synchronously from the planning to real-time operation of the power system with a high percentage of RE sources and capacity building and management to enforce the provisions of the Law on energy effciency. The results effectively support the Vietnam's National Energy Master Plan in general and the field of efficient use of energy in particular.

From the successful results of the DEPP2 , the Government of Denmark continues to finance from the ODA source of 60.29 million Danish Krone (equivalent to 8.96 million USD) to support Vietnam in the implementation of the Project, DEPP3 Program. The program will continue to pursue the common goal of reducing greenhouse gas emissions in accordance with Vietnam's commitment of "Nationally Determined Contribution" but with higher ambitions and goals.

The Vietnam Energy Outlook Report 2019 is an important milestone in the Danish - Vietnamese Energy Partnership Program

Develop specific goals for each component

The DEPP3 is aimed to support Vietnam in developing a low-carbon development roadmap for the energy sector in line with its commitment to reducing greenhouse gas emissions, enhancing its nationally determined contribution target, and enhancing related solutions by 2025. The program is divided into 03 components.

Component 1: Capacity building on long-term planning of the energy sector, chaired by the Department of Electricity and Renewable Energy, Ministry of Industry and Trade. The objective of the Component is to improve capacity in energy sector planning and policy formulation, and to integrate renewable energy sources, including offshore wind power development and energy-saving technologies is economically effective solutions to fulfill NDC commitments while ensuring national energy security.

Component 2: Improving the capacity to integrate renewable energy into the power system which is chaired by the Electricity Regulatory Authority of Vietnam, Ministry of Industry and Trade. The objective of the Component is to develop and complete a legal framework and flexible solutions for power system operation to support a safe and efficient transition towards the use of clean energy with a proportion of increased renewable energy sources.

Component 3: Low-carbon development in industry is chaired by Department of Energy Effciency and Sustainable Development, Ministry of Industry and Trade. The objective of the Component is to develop incentive mechanisms for the implementation energy efficiency in the industrial sector, improve capacity building and amend the legal framework on energy efficiency use at the national level and effectively enforce the legislation at the provincial level.

Key energy-using industrial enterprises are the priority objects of the Project

Beneficiaries of the project, in addition to the Departments of the Ministry of Industry and Trade, also include Departments of Industry and Trade nationwide, energy saving centers and energy service companies; state management agencies related to the management of the energy sector; enterprises, organizations and individuals participating in investment in power sources; management units in power source and grid operation; customers using electricity; energy users in the civil, public and commercial sectors.

Facing challenges towards Vietnam's energy industry, the technical assistance project under the DEPP3 is necessary for the Ministry of Industry and Trade to increase the proportion of renewable energy sources including offshore wind power development, and opportunities to participate in the market for renewable energy sources, building an incentive mechanism to strongly promote the implementation of energy efficiency in the industrial sector.

The DEPP3 will contribute to helping Vietnam achieve the goals of the Politburo's Resolution No. 55-NQ/TW on the orientation of Vietnam's National Energy Development Strategy to 2030 with a vision to 2045; Renewable energy development strategy; The National Energy Efficiency Programme for the period of 2019 – 2030” (VNEEP3) as well as meeting energy demand for socio-economic development and ensuring a sustainable environment, minimizing development carbon emissions.