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Viet Nam, Denmark sign MoU on energy co-operation

Update: June, 18/2015 - 18:29
Danish experts, in collaboration with a number of Vietnamese agencies and institutes, aimed to develop a comprehensive model and strive to optimise energy consumption in the country. — Photo tinnhanhchungkhoan.vn

HA NOI (VNS) — Deputy Minister of Industry and Trade Cao Quoc Hung and Danish Ambassador to Viet Nam John Neilsen today signed a Memorandum of Understanding (MoU) today enhancing co-operation in the energy sector.

Thus MoU will focus specifically on energy efficiency and renewable energy.

A major focus of the agreement is the development of a new strategic energy analysis for Viet Nam. Danish experts, in collaboration with a number of Vietnamese agencies and institutes, aimed to develop a comprehensive model and strive to optimise energy consumption in the country.

The agreement opened a new door for direct co-operation in terms of experience exchanges, capacity building and bilateral communications between the Ministry of Industry and Trade (MOIT) and the Danish Ministry of Climate, Energy and Building.

"The MOU will serve as the foundation for future co-operation between the two ministries on industrial energy efficiency and renewable energy," Deputy Minister Hung said.

Sharing Viet Nam's concerns over energy efficiency as a developing country, Ambassador Neilsen said, "The demand for energy will increase across all sectors and industries in Viet Nam in the coming years. The country will therefore have to implement sustainable policies which promote the use of renewable energy, energy efficiency and the introduction of cleaner technology."

Viet Nam and Denmark became strategic partners in 2011 to fight against the adverse effects of climate change, protect the environment and promote green energy development.

Co-operation between the two governments has resulted in the Low Carbon Transition in Energy Efficiency (LCEE) Project to support Vietnamese Small-to-Medium-sized enterprises (SMEs) by providing them with the opportunity to invest in energy-saving activities.

The project has established a financial mechanism, which is called Green Investment Facility (GIF), and focusses on SMEs in three sectors, mainly bricks, ceramics and food processing.

The project's research indicates that energy savings in the above three sectors in Viet Nam showed potential. In the field of food processing businesses can save between 15 and 25 per cent of energy use.

In particular, in the field of aquatic product processing, the potential of domestic enterprises can be up to 30 per cent when compared with international best practices.

For the brick and ceramic industries, with small scale and piecemeal production, together with traditional obsolete technologies, potential energy savings can be between 30 and 70 per cent.

The LCEE Project expects that financial support will help SMEs with loans for investment in energy saving measures. Then, it helps businesses reduce energy consumption, save energy costs, and get early returns on investment.

Through the Green Investment Facility, the LCEE Project gives the enterprises the opportunity to receive loans ranging from VND400 million (US$18,500) to VND4 billion ($185,000). — VNS

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