Vietnam Smart and Efficient Lighting Project - SELP 2

Vietnam is dependent on energy imports and faces uncertainties in future power supply. Heavy reliance on imported fossil fuel can lead to increasing energy costs and carbon emissions, thereby exacerbating the impacts of climate change. Vietnam’s energy demand has been rapidly rising. In March 2019, the government approved the Vietnam National Energy Efficiency Program 3 (VNEEP 3) for the 2019-2030 period, which requires implementing stronger measures to achieve energy efficiency targets.

However, the energy efficiency (EE) market has not yet been fully developed due to relatively low electricity tariffs, regulatory barriers, lack of mandatory targets, limited capacity among energy service companies (ESCOs) and related industrial businesses, lack of awareness about the benefits of EE among energy users, and underdeveloped financing facilities.

The Asian Development Bank (ADB) implemented a comprehensive project to help improve EE in streetlighting and buildings in Vietnam. The project main goals were to (1) improve national legislation governing energy performance contracting and public-private partnerships and (2) develop and implement pilot and demonstration projects in some cities and provinces to build capacity and develop a market for EE products and services. Econoler served as the technical advisor for the ADB to help accomplish these two goals. Econoler applied its extensive experience in EE streetlighting and financing and its rich knowledge of the Vietnamese market and institutions to successfully complete this assignment.

To fulfill this assignment, Econoler carried out the following main tasks:

• Conducted a technical analysis of Vietnam’s national streetlighting and EE regulations;

• Developed the terms of reference for bids and tenders to recruit domestic and international firms to provide the needed support for the development of regulations and to help address the financial and regulatory barriers to energy performance contracting;

• Built national and local capacity to apply the appropriate methodologies and best practices for improving EE in streetlighting and public buildings;

• Provided technical advice and input as required.

With the assistance of Econoler, the ADB successfully completed this project and set a strong foundation for implementing larger projects by expanding the scope of activities to more provinces and cities to tap significant emissions reduction potential with funding from the Global Climate Fund (over USD 100 million).