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Law on Energy Efficiency and Conservation: A One-year Review

29/10/2012

The "bright spot" of energy labeling

One of the bright spots stipulated in the Law on Energy Efficiency and Conservation is the roadmap to use energy labeling, which pilot implementation was carried out since early 2010 for lighting devices. In 2011, energy labeling implementation was more active with a series of workshops organized to provide experience and supports for enterprises. Also in 2011, electrical fans were the second group of products that applied energy labeling.

Together with communication programs, the fact that electrical equipments were energy labeled helped to bring energy saving products closer to consumers. Nguyen Van Chung who lives in Ninh So Commune, Thuong Tin District, Hanoi said that after using T8 fluorescent and compact lamps, he found them brighter and he could even save tens of thousand of dong a month.

As for enterprises implementing energy efficiency programs, most of them focus on improving the quality of lighting which is an easy phase and brings high efficiency with simple and easy-to-use products.

Statistic by The Ministry of Industry and Trade (MoIT) revealed that, total number of fluorescent lights consumed in the market increased from 7 million in 2006 to more than 30 million by the end of 2010. Electrical fans which used energy labeling recently also recorded good consumption. Even though there has been only three enterprises applying energy labeling for electrical fans which are Vietnam Fan Joint Stock Company, Lien Hiep Co.,Ltd and Tan Tien S.K Co., Ltd, their products presently account for 40 percent of this new products consumption market share. It is clear that despite the unpopularity of energy labeling products, they seem to be going on the right track and are expected to become consumer's choice soon.

In addition, the release of Decision 68/2011/QD-TTg which stipulates a list of allowed energy efficiency equipments and devices for State agencies is of great importance to energy labeling activity. Under this decision, State agencies when buying electrical equipments such as electronic ballast, electrical fans, air conditioners, refrigerators and televisions have to choose products with energy efficiency equivalent to level five which is the highest energy efficiency (corresponding to a five-star label) and could make them feel more enthusiastic in national energy labeling programs.

Together with activities relating to energy labeling programs, the communication activities to raise people's awareness of energy efficiency and conservation programs also took place actively and brought positive results with the elastic coefficient between electricity demand growth and GDP has decreased from two to 1.6 by the end of 2011.

More participation needed

According to the National Energy Development Plan, by 2020 the demand for domestic electricity will continue to increase from 15 to 20 percent per year. The deputy director of the MoIT's General Directorate of Energy Le Tuan Phong said that with the recovery of the economy, the demand for energy consumption and imports would increase. Amid volatility of world energy price, increase of input costs and more severe competitiveness, energy efficiency is a right choice of enterprises and consumers considering Vietnam great potentiality of energy efficiency, from 10 to 40 percent depending on residence and production consumption.

With a target to save from 5-8 percent of the energy in the 2011-2015 period, MoIT is implementing to popularize energy labeling information and experience in the sectors of industry, transportation and construction. In addition, with the supports from foreign partners such as Japan International Cooperation Agency (JICA), Denmark and the World Bank, the implementation of the Law on Energy Efficiency and Conservation is expected to be carried out more actively in the coming time.

The energy efficiency programs also need more participation from the community as it is the responsibility of the whole society to pay respect to this new law, which has now become the backbone for the energy efficiency socialization.

Phuong Hoang Kim, the head of the Department of Science and Technology, General Directorate of Energy, MoIT, stressed that in coming time, enterprises and localities should take more initiative in drafting specific plans and programs to implement energy efficiency solutions widely and effectively./.