Directive 20/CT-TTg 2023 enhancing electricity savings in the 2023-2025 period

DIRECTIVE

On enhancing electricity savings in the 2023-2025 period and beyond

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In recent years, electricity supply for the economy is ensured, providing a secure foundation for economic development, investment attraction, protection of national defense and security, and social stability. However, considering challenges that electricity supply for the 2023-2025 period might face, because: (i)  hydrographical conditions ensuring output of hydropower plants are becoming less favorable due to climate change; (ii) dependence on imported primary energy is growing; (iii) wind power, solar power and renewable power sources are still limited; (iv) thermal power face a number of difficulties regarding investment expansion while power demand continues to soar, 8.5%/year on average, higher than economic growth rate, economical and efficient use of electricity must be considered as a crucial and urgent solution to ensure energy security, sustainable development and economic growth of the country in the time to come.

Against this backdrop, the Prime Minister requests:

- In the 2023-2025 period and the years onwards, the whole country to strive to save at least 2.0% of total electricity consumption every year.

- To reduce power loss on the entire power system by under 6% by 2025.

- To reduce the peak load capacity of the national grid through the implementation of the Demand-Side Management (DSM) and Demand Response (DR) programs, by at least 1,500 MW by 2025.

- By 2030, 50% of office buildings and residential buildings to be equipped with rooftop solar power systems for self-consumption, without selling electricity back to the national power grid.

- By the end of 2025, 100% of street lighting systems to use LED lights.

To that end, all organizations and individuals must be committed to saving electricity measures, specifically as follows:

1. Ministries, ministry-level and Government-attached agencies, People's Committees of centrally-run cities and provinces, businesses and mass organizations are assigned to take the following measures:

a) To uphold electric saving in agencies, offices:

- Cooperating with local electricity enterprises in formulating and launching their own electricity saving plans, ensuring to save at least 5.0% of total annual electricity consumption every year.

- Formulating, promulgating and implementing regulations on electricity saving, on use, maintenance and repair of electricity-consuming equipment at in agencies, offices.

- Raising the awareness of all of their workers towards electricity saving, adding electricity saving to criteria for annual assessment of performance, compliance with internal regulations and emulation and commendation. Heads of agencies, offices shall be responsible for cases of violating regulations on energy saving at their workplace.

- Utilizing and mobilizing resources to install and use rooftop solar power systems, solar water heating systems to reduce electricity consumption from the national power grid.

- Strengthening the implementation of Decision No. 68/2011/QD-TTg dated December 12, 2011, of the Prime Minister, promulgating the list of energy-saving devices and equipment to be equipped and procured for agencies and units using State budget.

- Regularly expediting, reviewing and inspecting the compliance with existing electricity saving regulations and rules.

b) To uphold electric saving in public lighting, lighting for advertising purposes, outdoor decoration:

- Organizations and individuals managing and operating public lighting, lighting for advertising purposes, outdoor decoration shall take responsibility for and cooperate with electricity suppliers in, formulating and launching electricity saving plans, which must ensure to save at least 30% of the 2020-2025 total electricity consumption for the above stated lighting purposes.

- Adopting management solutions and technical regulations and standards on public lighting; replacing decorative lamps, lighting lamps and advertising lamps with power-saving lamps; applying automatic control technology to public lighting, lighting for advertising purposes, outdoor decoration. Promoting the application of solar energy solutions for equipment used for advertising, decoration and public lighting.

- Applying power saving technologies to public lighting, using energy-efficient and power-saving lighting devices for 100% of public lighting works which are going to be built or renovated.

- Speeding up the schedule of lighting automation according to the time frame and weather conditions of public lighting works.

- Restaurants, hotels, commercial and service establishments, office complexes and apartment buildings shall reduce 50% of outdoor advertising and decorative lighting capacity during night-time peak hours at the request of local electricity enterprises; comply with regulations on economical and efficient lighting, and be ready to cut back on electricity demand when notified by local electricity authorities in case of power shortage; cooperate with local electricity enterprises to carry out appropriate propaganda programs and forms of propaganda on saving electricity in the summer peak, programs, contests, and launch campaigns on saving electricity in the urban areas, apartment buildings, commercial centers.

c) To uphold electricity saving in households:

- Using electrical equipment sealed with energy label in accordance with Decision No. 04/2017/QD-TTg dated March 9, 2017, of the Prime Minister, prescribing the list of means and equipment subject to energy labeling, minimum energy efficiency level and implementation roadmap.

- Regularly practicing economical and efficient use of electricity at households, such as: turn off electrical appliances when leaving the room, cut off the power source if electrical appliances are not used; only use the air conditioner when absolutely necessary and use it at the right temperature and mode (cooling mode from 26 degrees Celsius or more); give priority to the procurement of high-efficiency electric vehicles and equipment or electrical equipment sealed with high-efficiency energy label; minimizing the use of incandescent light bulbs.

- Encouraging the installation and use of rooftop solar power systems for on-site use, hot water heating systems from solar energy.

d) To uphold electricity saving at commercial and service establishments:

- Formulating and organizing the implementation of internal regulations on electricity use, rules on economical, safe and efficient use of electricity at commercial and service establishments (supermarkets, commercial centers, restaurants, accommodation establishments, shops, shops, hotels, commercial service establishments, office complexes, apartments).

- Formulating and disseminating the establishment's electricity-saving regulations to customers.

- Formulating plans and scenarios to coordinate with electricity enterprises in reducing load.

- Implementing programs to encourage the use of on-site energy sources from renewable energy sources, electrical equipment using renewable energy.

dd) To uphold electricity saving at manufacturing establishments:

- Encouraging enterprises to participate in the voluntary agreement to implement solutions on energy saving, electricity saving, rooftop solar power installation and consultancy on implementation of economical and efficient energy use solutions.

- Promoting the implementation of Decision No. 279/QD-TTg dated March 8, 2018, of the Prime Minister, on the National Program on electricity demand management for the period 2018-2020, with a vision towards 2030.

- Formulating programs to mobilize the backup power generation system in case of power shortage.

- Formulating and implementing solutions for economical and efficient use of electricity such as: ensuring the proper use of capacity and sub loading diagram; implementing a proper production plan; minimizing the mobilization of equipment and machinery with large power consumption capacity at peak hours; minimizing electrical equipment operating at no load.

- Installing and integrating renewable energy sources such as solar energy, wind energy into the internal energy system; prioritizing the use of equipment sealed with high efficiency energy label.

- Energy-using facilities with electricity consumption of 01 million kWh/year or more must save at least 2% of electricity consumed per product unit every year or must save at least 2% of total electricity consumption capacity during the year, reviewing and ensuring the observance and compliance with the provisions of the Law on Economical and Efficient Use of Energy and relevant legal documents on economical and efficient use of energy and electricity saving.

- Industrial production enterprises governed by legal documents providing for energy consumption norms per unit of product must comply with energy consumption norms in accordance with law provisions

- Encouraging the development and application of energy management systems according to the ISO 50001:2018 standard at manufacturing and business establishments. Conducting periodic energy audits, formulating and implementing annual goals and solutions on economical and efficient use of energy.

- Strengthening the application of advanced energy-saving techniques, promoting technological advances in energy-consuming industries, optimizing production materials, eliminating outdated production capacity, continuing to improve energy efficiency through investment in energy-saving projects.

- Deploying and applying technical guidelines on electricity saving and economical and efficient use of energy, exploiting and using technology manuals on energy saving for energy-consuming industries around the country.

2. The Ministry of Industry and Trade shall be responsible for:

- Assuming the prime responsibility for, and coordinating with ministries, agencies and localities in, monitoring, urging and checking the implementation of this Directive, summarizing annual implementation results, and reporting to the National Steering Committee for implementation of the National Program on economical and efficient use of energy in the period of 2019-2030.

- Assuming the prime responsibility for, and coordinating with ministries, agencies and localities to urgently deploy the tasks of the National Program on economical and efficient use of energy in the period of 2019-2030 and the National Program on management of electricity demand for the period of 2018-2020, with a vision to 2030, with special attention paid to non-commercial and commercial electricity sub loading adjustment activities.

- Formulating and launching programs to promote rooftop solar power in businesses and households, programs to raise awareness on the use of energy-saving equipment in households, such as air conditioners, refrigerators, LED lights, and washing machines, etc.  Expand energy labeling, promoting the market transformation for high energy efficient products.

- Directing the Vietnam Electricity to optimize the operation of power plants and transmission and distribution grids in order to efficiently use primary energy sources and reduce power losses throughout the system.

- Coordinating with mass media agencies to continuously and widely propagate to people to know and implement electricity saving. Assuming the prime responsibility for, and coordinating with ministries, branches and People's Committees of centrally-run cities and provinces in strengthening propaganda and dissemination of state policies and regulations on electricity saving and economical and efficient use of energy. Organizing annual energy saving month events.

- Urging Departments of Industry and Trade to support industrial manufacturing and service enterprises to make investments and deploy energy-saving solutions to replace low efficiency equipment with high performance and energy saving equipment and chains.

- Assuming the prime responsibility for, and coordinate with ministries and agencies in, reviewing, supplementing and perfecting the system of legal documents on energy use norms for product units of the sector and/or sub-sector; reviewing and proposing amendments and supplements to standards, technical regulations and legal regulations on economical and efficient use of energy including: the Law on Economical and Efficient Use of Energy; Decree No. 21/2011/ND-CP dated March 29, 2011; studying to improve the legal framework for business model of energy service company (ESCO); circulars prescribing the energy consumption norms in the fields of industry, construction, transportation and other relevant legal documents.

- Coordinating with the People's Committees of centrally-run cities and provinces in formulating annual electricity saving targets for their localities.

- Formulating and organize the implementation of plans on inspection, supervision and imposition of sanctions on individuals, enterprises and organizations that fail to comply with regulations on economical and efficient use of energy.

- Assuming the prime responsibility for developing rooftop solar power programs for households, businesses, state agencies, hospitals, schools (including incentive policies, communication, etc.).

- Coordinating with media agencies, Vietnam Television, Voice of Vietnam, etc. to propagate the Directive and rooftop solar power program.

3. The Ministry of Finance shall be responsible for:

- Collaborating with the Ministry of Industry and Trade and relevant parties in studying, developing, promulgating or submitting to competent authorities for prescribing a financial mechanism that allows the Vietnam Electricity to account into cost of electricity saving tasks.

- Balancing and allocating funds for the implementation of tasks on electricity saving and funds for performing tasks under the National Program on economical and efficient use of energy in the period of 2019-2030 in accordance with Decision No. 280 /QD-TTg dated March 13, 2019, of the Prime Minister, in accordance with the State Budget Law, the Law on Public Debt Management and guiding documents.

- Assuming the prime responsibility for, and coordinating with the Ministry of Industry and Trade and relevant in studying, developing, promulgating or submitting to competent authorities for prescribing financial mechanisms and policies to promote market development of energy service enterprises, incentives for customers to participate in power load adjustment programs.

4. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and the Ministry of Finance in, considering the regulations that projects from public investment must install rooftop solar power equipment in buildings.

5. The Ministry of Science and Technology shall be responsible for coordinating with relevant ministries and branches in reviewing, supplementing, elaborating and promulgating national technical standards, technical regulations on energy performance of electricity consuming equipment.

6. The Ministry of Information and Communications shall coordinate with the Ministry of Industry and Trade on directing the central and local radio Stations, television broadcast stations, press and mass media to continuously develop and carry out radio and television programs on saving electricity, applying unit prices associated with appropriate preferential policies for the propaganda and dissemination of electricity saving.

Directing central and local press agencies to actively coordinate with the Ministry of Industry and Trade and Vietnam Electricity to carry out propaganda works in various and appropriate forms on economical use of electricity at summer peak, programs, contests, launching on electricity saving.

7. Ministries and branches shall be responsible for:

- Closely collaborating with the Ministry of Industry and Trade to perform the tasks assigned under this Directive of the Prime Minister.

- Implementing electricity saving plans, organizing the implementation, propagating and disseminating to all units and individuals under their management. Closely inspecting and supervising electricity usage costs in recurrent expenditures of administrative and non-business units in accordance with law regulations.

8. People's Committees of centrally-run cities and provinces shall be responsible for:

- Formulating, issuing and implementing electricity saving plans at their localities. Organizing the effective and synchronous implementation of the issued plans and regularly monitoring, supervising and inspecting to ensure the achievement of the annual targets. Developing annual and periodical local electricity-saving targets, organizing the allocation of targets, determining and evaluating the level of implementation of electricity-saving targets for each district, town and city in the year.

- Organizing propaganda on electricity saving to all classes of people in their localities through various forms such as printing panels, posters, propaganda on the online Public Service Portal of the provinces, cities, on the Internet, digital citizen applications of provinces and cities, radio and television systems, electronic newspaper systems, paper newspapers, organization of contests on electricity saving. Organizing propaganda to key energy users and key electricity consumers for the implementation of regulations on economical and efficient use of energy and participation in power load adjustment events at the request of power system dispatching levels.

- Organizing the rewards and proposing the State competent agencies to compliment and reward the agencies, units, organizations and individuals that have good achievements in the work of energy saving.

- Organizing the inspection and supervision of the electricity use situation for key energy users. Stepping up the inspection, supervision and strictly handling all cases which violate the current regulations on economical and efficient use of energy. Annually, public announcing the electricity saving results on the online public service portals of the People's Committees of centrally-run cities and provinces, the administrative and non-business agencies, the energy consumption levels of the manufacturing enterprises subject to the compliance with State regulations.

9. Ministries, agencies and local, People’s Committees at all levels shall be responsible for:

Providing guidelines, inspecting, supervising, approving and reviewing investment projects, purchase of public procurement in accordance with Decision No. 68/2011/QD-TTg dated December 12, 2011, of the Prime Minister, on issuing the list of eligible items, vehicles, energy-saving devices to be equipped and purchased by agencies and units using State budget; supervising the consuming charge of electricity in the regular expenditures of administrative and public service units in accordance with the electricity saving regulations of this Directive.

10. The Vietnam Electricity shall be responsible for:

- Coordinating with the Ministry of Industry and Trade to organize the implementation of electricity saving programs and plans in the 2023-2025 period and the years onwards. Formulating, organizing the implementation and reporting to the Ministry of Industry and Trade on the results of the implementation of electricity saving programs and plans annually and periodically.

- Optimizing the operation of power plants, transmission and distribution grids to efficiently use the primary energy sources and reduce power losses throughout the system. Mobilizing reasonably capacity power and electrical energy of hydro power plants, the purchased power sources from independent power plants, renewable energy plants and backup power of customers

- Formulating plans for periodical maintenance of power plants and optimally mobilizing engine units to ensure technical requirements in efficient operation and exploitation of power sources. Coordinating closely with the National Center for Meteorology and Hydrology on updating weather and water forecasts, especially bulletins forecasting water sources during dry season, drought, and water shortage. Coordinating with relevant agencies and units to develop reservoir operation plans on the basis of optimizing water regulation for use purposes, ensuring saving and efficiency of water sources, ensuring safe water supply for downstream.

- Implementing technical management solutions, investing, renovating and upgrading the power grid, strengthening technical management, limiting incidents, ensuring the safe, stable and reliable operation of the power grid, reducing power loss.

- Propagating and encouraging customers to sign commitments to save electricity and reduce electricity in case of electricity shortage; developing contingency mobilization plans and mobilizing participation in backup power generation in case of power shortage.

- Focusing on propagating economical and efficient use of electricity in households, office buildings, apartment buildings, businesses, administrative offices, schools in provinces and cities; carrying out appropriate forms of propaganda on electricity saving during the peak summer season, programs, contests, and launching campaigns on electricity saving. Propagating and promoting the development of rooftop solar power for the on-site use of electricity users being households, administrative and non-business agencies, hospitals and schools; customers in industrial zones; livestock and farming farms (installed on the roofs of existing construction works), especially in the northern area.

- Assuming the prime responsibility for, and coordinating with relevant agencies in, researching, building and reporting to the Committee for Management of State Capital at Enterprises to submit to competent authorities for promulgation of a financial mechanism allowing the account of operation costs used to promote energy saving into production and business costs of the Vietnam Electricity.

- Coordinating with People's Committees at all levels, businesses and organizations located in their localities to develop electricity saving plans. Coordinating with local Departments of Industry and Trade to update and report to the People's Committees of centrally-run cities and provinces the annual electricity consumption results of electricity users.

- Coordinating with relevant units to make statistics and monitor the electricity saving of agencies, offices, state-owned enterprises, public lighting to advise and propose to the Ministry of Industry and Trade and People's Committees of centrally-run cities and provinces in applying solutions for economical and efficient use of electricity.

- Coordinating with manufacturing enterprises, commercial service establishments, urban area investors, and building management boards to strictly implement regulations of the Directive.

- Before February 1 every year, summarizing and sending reports to the Ministry of Industry and Trade, directing the member units to summarize and report to the provincial-level People’s Committees, and related agencies and units on implementation results of electricity saving programs and plans nationwide, so that branches can advise ministries, branches and People's Committees of centrally-run cities and provinces to take handling measures against units violating regulations on electricity saving.

11. Ministers, Heads of Ministerial-level agencies, heads of Government-attached agencies, chairpersons of People’s Committees of centrally-run cities and provinces, chairperson of Board of Members and General Director of Vietnam Electricity, Heads of agencies, units, organizations and individuals engaging in the electricity industry and using electricity shall be responsible for strictly implementing this Directive.

12. This Directive replaces the Prime Minister’s Directive No. 20/CT-TTg dated May 07, 2020, on enhancing electricity savings in the 2020-2025 period./.

For the Prime Minister

The Deputy Prime Minister

Tran Hong Ha