The programme and model is part of the Vietnam Clean Production and Energy Efficiency Project, funded by the Global Environment Facility (GEF) and the World Bank (WB).
Trinh Quoc Vu, Director of the Department of Science-Technology and Energy Efficiency under the Ministry of Industry and Trade’s General Directorate of Energy, said the VA and ESCO aim to save energy in industries, thus helping enterprises reduce costs and enhance competitiveness.
The pilot stage of the 10-year VA programme will last for two years, during which firms commit to cutting energy in production based on assistance from the Ministry of Industry and Trade.
An ESCO is a commercial business providing a broad range of energy solutions including the design and implementation of energy saving projects, retrofitting, and energy conservation and infrastructure outsourcing. An ESCO provides services via an Energy Performance Contract (EPC).
Subjects appropriate to ESCO projects are public lighting systems; administrative agencies, non-productive agencies, state budget beneficiaries, industrial manufacturers and service suppliers.
Statistics showed that there are about 100 energy efficiency service suppliers in Vietnam, but only a fraction of them follows the ESCO model.