Delegates Zero in on Energy Draft Law

The National Assembly delegation from Ho Chi Minh City recently held a meeting to discuss constructive opinions concerning the draft version of the Law on Energy Efficiency and Conservation. Energy experts noted that the draft contains insufficiently strict sanctions and unclear policies. They said that the draft law does not give appropriate support to the development of renewable energy.

Currently, the amount of energy consumed at production facilities in Vietnam is 1.7 times higher than in other countries in the world. It is forecasted that in 2010-2020, Vietnam will have to import energy. Statistics from the Ho Chi Minh City Energy Conservation Center show that more than 4,000 companies operating in Vietnam consume more than three million kWh of electricity each year, and more than 40 percent of the total energy is consumed by companies based in Ho Chi Minh City.

However, most companies in Vietnam do not yet have any energy management experts and they rarely conduct energy audits. Huynh Kim Tuoc, the director of the Ho Chi Minh City Energy Conservation Center, said that energy consumption accounts for 14 percent of the city’s gross domestic product (GDP), which is 20 percent lower than the country’s average. It is estimated that if production facilities in the city utilize energy conservation methods, they can reduce their total production cost by 5-25 percent.

The Law on Energy Efficiency and Conservation will regulate the use of energy and make all individuals and organizations aware of the need to contribute to environmental protection in order to ensure sustainable development. The draft version of this law is comprised of 12 chapters with 50 provisions regarding energy efficiency and conservation methods that must be used at production facilities and organizations that rely on the State budget.

Phan Minh Tan, the director of the Ho Chi Minh City Department of Science and Technology, said that the draft version of the Law on Energy Efficiency and Conservation contains provisions that encourage individuals and organizations to save energy, but it does not indicate the sanctions that are applicable to those who use energy wastefully. In his opinion, it is necessary to harmonize these two aspects of the draft law. The law must be supplemented with additional provisions that compel individuals and organizations to save energy. It must also clarify the State’s responsibility in making policies to ensure the supply of sustainable energy and duty to effectively utilize renewable and non-renewable energy resources.

In the opinion of energy experts, it is necessary to put in place a separate law on renewable energy utilization or to amend provisions in the draft version of the law to encourage the use of renewable energy resources. In fact, the price of renewable energy is still high. Nguyen Van Ly, the deputy director of the Ho Chi Minh City Power Company, said that if the State does not support power companies by reducing taxes or providing subsidies, then renewable energy resources cannot be utilized.

Pham Phuong Thao, the head of the Ho Chi Minh City National Assembly delegation and the chairwoman of the city’s People’s Council, said the Law on Energy Efficiency and Conservation must specify what activities should be encouraged and what activities are compulsory to ensure energy conservation. In her opinion, the law must clearly define the rights and responsibilities of State organizations that are involved in energy management. Appropriate policies must be put in place to facilitate companies’ access to loans so that they can invest in modern technology to create energy efficient products./.

VEN

Tags: Vietnam energy, Vietnam energy law, Vietnam law