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THE MINISTRY
OF INDUSTRY
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SOCIALIST REPUBLIC OF VIET NAM
Independence Freedom Happiness
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No. 2447/QD-BCN
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Hanoi, July
17, 2007
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DECISION
ON APPROVING THE
NATIONAL PROGRAM FOR POWER DEMAND SIDE MANAGEMENT
THE MINISTER OF INDUSTRY
Pursuant to the Government’s Decree No.
55/2003/ND-CP dated May 28, 2003, defining the functions, tasks, powers and
organizational structure of the Ministry of Industry;
Pursuant to the Law on Electricity dated
December 03, 2004;
Pursuant to the Government’s Decree No.
102/2003/ND-CP dated September 03, 2003, on economical and efficient energy
use;
Pursuant to the Decision No. 79/2006/QD-TTg
dated April 14, 2006, of the Prime Minister, approving the national target
program on economical and efficient energy use;
Pursuant to the Document No. 3122/TTg-CN of the
Prime Minister dated December 25, 2006, notifying on opinion of the Prime
Minister on assigning the Ministry of Industry in elaboration and approval of
the national program for power demand side management (DSM);
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DECIDES:
Article 1. To approve the national program
for power demand side management (DSM) during 2007-2015 include the following
principal contents:
I. Objectives of program:
1. Overall objectives:
a) The national program on DSM includes activities
to complete the legal framework on DSM, encourage, and push up as well as
compulsory management measures aiming to change, conduct adequately steps
raising awareness of community about DSM, and attract the interest so as to
turn it into demand and push up acts on DSM in whole society.
b) Through activities of the program, attain the
objective regarding cutting peak sub-load of the system so as to reduce the capital
demand for investment in construction of new electricity sources, bringing the
economic-social benefits, and contribute in environmental protection, rational
exploitation of energy resources, implement sustain economic-social
development.
c) Building the operational capability for units
operating in electricity so as to carry out the DSM program on a wide scale.
2. The specific objectives:
a) Striving to cut down demand of peak capacity of
the national electrical system which will be 500MW in 2010 and 1,200MW in 2015,
through implementation of DSM programs.
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II. Contents of the program:
Content group 1: programs supporting DSM
1. Program on researching sub-load:
a) Content:
- Collect and analyze figures about power
consumption of components of power sub-load aiming to define the power use rule
of customers, in serve for forecasting the power demand, master plans on
development of electrical system and building solutions to regulate chart of
sub-load in direction of decreasing differences of peak and off-peak hour so as
to optimize operation of electrical system.
- By 2010: there are 1,500 customers registering
participation in the program on researching sub-load; by 2015, there will be
3,000 customers participating in the program.
b) Organization of implementation
The Electricity Regulation Authority shall assume
the prime responsibility for elaboration and coordinate in implementing the
detailed program contents, the Vietnam Electricity Group, electricity
companies, and electricity users shall be units in charge of
implementation.
2. Assessing the DSM programs which have been
and being performed; proposing the new pilot DSM programs
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- To review and assess efficiency of implementing
the DSM programs which have been and being performed till shape of the power
sub-load chart.
- Based on results of forecasting power demand,
structural change of sub-load components in the forecasting sub-load chart, to
elaborate the methodology and process to implement selection aiming to propose
the pilot DSM programs in serve for the medium and long-term DSM plans with
purpose of adjusting shape of the power sub-load chart in direction of
decreasing differences of peak and off-peak hour.
b) Organization of implementation:
The Electricity Regulation Authority shall assume
the prime responsibility for management and coordinate in implementing Contents
of the program. Foreign and domestic consultancy units shall participate in
elaboration and design details of the pilot programs.
Content group 2: The medium and long term
DSM projects include:
1. Program on sub-load direct control (LDC):
a) Contents:
- Direct sub-load management means capability of
electricity companies which are able to control devices using electricity from
customer side and have been accepted by customers.
- During 2007-2010: Conducting pilot elaboration of
03 programs on sub-load direct control which using the control technology by
electromagnetic waves in 3 cities: Ha Noi, Ho Chi Minh and Da Nang with target
of obtaining 150 customers participating in the program and decreasing 5MW
capacity on peak hour.
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b) Organization of implementation:
The Electricity Regulation Authority shall assume
the prime responsibility for elaboration and supervision of implementing the
detailed programs, the electricity companies are units in charge of
implementation.
2. Program for power meters with price table
under time of use (TOU) and relevant incentive measures
a) Contents:
- To reduce the peak capacity of system through
application of price table under time encouraging customers to move sub-load
from peak hour to off-peak hour or normal hour.
- During 2008-2010: to install 25,600 TOU meters
for sub-load households with the monthly consumption level of 1,500 kWh or
more;
- During 2011-2015: to install 82,000 TOU meters
for sub-load households with the monthly consumption level of 1,000 kWh or
more.
b) Organization of implementation:
The Vietnam Electricity Group shall be unit in
charge of elaborating and managing implementation of the program; the
Electricity Regulation Authority shall approve and supervise implementation of
the program; the electricity companies are units in charge of implementation.
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a) Contents:
- Designing the I&C price table;
- Building a pilot program with target: by 2015,
there will be participation of 200 customers in industry, commerce and service
with the consumption level of over 1,000,000 kWh/year.
b) Organization of implementation:
The Electricity Regulation Authority shall assume
the prime responsibility for building and managing implementation, the
electricity companies shall be responsible for implementation of the program.
4. Program for reactive power compensation:
a) Contents:
Advising for customers in application of solutions
for reactive power compensation aiming to increase the power coefficient (cosφ)
in industrial production area, where the reactive power (wattless power) in net
is used essentially at actuator motors in plants, production chains so as to
reduce loss of power energy and increase efficiency of power use.
b) Organization of implementation:
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Content group 3: The national program for
raising awareness on DSM
a) Contents:
- Raising awareness of community by programs for
promotion and marketing on mass media aiming to push up the process of applying
the DSM program.
- Coordinating in implementation of activities
involving quality inspection, labeling and building standard of minimum energy
efficiency for devices using electricity, aiming to ensure the permanence for
DSM program.
- Elaborating the official training textbook and
reference documents on energy thrifty and DSM for lower-secondary and
upper-secondary schools.
b) Organization of implementation:
Electricity Regulation Authority shall assume the
prime responsibility for, and coordinate with the Ministry of Education and
Training in elaborating the official training textbook and reference documents
on energy thrifty and DSM, coordinate with the Vietnam Electricity Group in
activities involving quality inspection, labeling and building standard of
minimum energy efficiency for devices using energy.
Content group 4: To complete the legal
framework on power demand side management (DSM)
a) Contents:
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- To elaborate and promulgate Government’s Decree
guiding in details on power demand side management and legal documents
promulgated by the Ministry of Industry to guide in details on DSM
implementation;
- To elaborate suitable mechanism, policy and electricity
price table aiming to encourage implementation of medium and long-term DSM
programs, encourage the thrift an defective use and move the power consumption
chart in direction of decreasing gradually difference of peak hour and off-peak
hour (I&C, TOU, DLC programs);
- To elaborate regulations on reactive power
compensation;
- To elaborate mechanisms, policies to step by step
establish fund of energy thrifty and power demand side management aiming to
ensure the successful implementation of contents of the energy thrifty program
and DSM programs.
b) Organization of implementation:
The Ministry of Industry shall be agency which
assumes the prime responsibility for, and coordinates with relevant Ministries
and sectors in drafting legal documents related to the power demand side
management, Electricity Regulation Authority shall be focal unit for
implementation.
Total expenses for implementing the national
program on power demand side management (DSM) during 2007-2015 will be VND
119.56 billion, in which:
- During 2007-2010: VND 34.82 billion;
- During 2011-2015: VND 84.74 billion.
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The national program on power demand side
management (DSM) shall begin from 2007 till 2015, divided into 02 phases:
- Phase 1 (2007-2010): carrying out
proactively elaboration of capability for implementation, completing the legal
framework on DSM, implementing pilot DSM programs, supporting and organizing
campaign to raise awareness of customers using electricity about DSM.
- Phase 2 (2011-2015): Program has been gone
into orderly operation. Carrying out deeply and widely for contents of the
medium and long-term DSM programs.
Article 2. The principal solutions to
implement the national program on power demand side management (DSM)
1. The national program for power demand side
management (DSM) may apply the financial solution of the national target
program on economical and efficient energy use which has been approved by the
Prime Minister at the Decision No. 79/2006/QD-TTg dated April 14, 2006. The
program may use capital sources from the state budget, aids of international
financial organizations, and capital source of enterprises participating in the
specific DSM programs during implementing the program.
2. To implement solutions on investment, science
and technology, and training, including the following specific contents:
- To implement the selective investment on
strengthening capability for organizations of design advisory, testing, energy
audit; investment for communication, information, propagation, education to
raise awareness of customers using electricity about DSM.
- To make details of training demand to raise
capability for DSM implementation in country, mechanism to encourage investment
in DSM programs so as to encourage development.
- To elaborate subjects on development of
technology for producing new products of enterprises, elaborate policies on
power demand side management, approve expenditure for science and technology
activities of Ministries.
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Article 3. Organization of implementing the
national program on power demand side management (DSM)
1. To assign the Electricity Regulation Authority
to assume the prime responsibility for, and coordinate with relevant units in
implementing the program; controlling all activities of the program and
implement parts of the assigned content.
2. Units participating in the Program shall
formulate scheme to carry out each specific content for the Electricity
Regulation Authority to sum up and submit to the Ministry of Industry for the
approval, summing up and putting into the annual implementation plans.
3. The national program for power demand side
management may use capital sources of the national target program on economical
and efficient energy use. The Electricity Regulation Authority shall make
annual plans on the capital registration; submit them to the Ministry of
Industry for the approval and organization of implementation.
Article 4. The Chief of office, Director of
Electricity Regulation Authority, Office of the Steering Board of the national
target program on economical and efficient energy use, General Director of the
Vietnam Electricity Group and relevant electricity units shall implement this
Decision.
THE MINISTER OF
INDUSTRY
Hoang Trung Hai