Promoting the Implementation of Demand Response Programs

Viet Nam faces enormous increases in energy demand that will continue to grow at a double-digit rate in the coming years. Understanding that smart grids are one of the most effective and efficient means to cope with the country’s challenges, the government has engaged in a bilateral cooperation project entitled Smart Grids for Renewable Energy and Energy Efficiency (SGREEE) with GIZ. SGREEE supports the Government of Viet Nam in the implementation of its Smart Grid Road Map (SGRM) with the immediate aims of: (1) Facilitating the integration of an increasing share of renewable energy; and (2) enabling advanced demand-response and demand-side energy efficiency measures by way of introducing intelligent grid solutions. The Promoting the Implementation of Demand Response Programs initiative is a part of SGREEE that was aimed at supporting the Electricity Regulatory Authority of Viet Nam (ERAV) and other stakeholders to increase their regulatory, methodological, and technological capacities related to the development of demand response. The program was comprised of three action areas: (1) Building and strengthening the legal and regulatory frameworks; (2) fostering capacity development; and (3) promoting technology cooperation in the field of smart grids. For this project, Econoler worked with the lead contractor CPCS to support ERAV and other stakeholders to successfully implement demand response programs in accordance with Viet Nam government’s directions.

The overall objective of this assignment was to develop detailed financial incentive mechanisms that were suitable to support the implementation of demand response programs of various types. The mandate of Econoler was to support all project phases and is focused on contributing knowledge about demand response programs including conducting a gap analysis of Viet Nam’s 2007-2015 Program, mapping out international demand response models, reviewing program funding mechanisms, and issuing policy recommendations and action plans for the country. Econoler and CPCS delivered three consultation workshops. Econoler’s role included contributions to the workshop agendas and contents. Econoler also developed and facilitated the workshop on demand response cost-benefit analyses and calculations. Project partners, the client, and the beneficiary all benefited from Econoler’s extensive knowledge and expertise about demand-side management (DSM), demand response, DSM program funding, and direct financial incentive mechanisms through the incorporation of our expert knowledge into recommendations for Viet Nam to improve their overall DSM program.