Decree No. 102/2003/NĐ-CP on the Use of Energy Efficiently and Effectively

  DECREE

On the use of energy efficiently and economically

__________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

To promote the efficient and economical use of energy, meeting the increasing demand for energy of the national economy, while protecting the environment, rationally exploiting energy resources, and implementing sustainable economic and social development;

At the proposal of the Minister of Industry,

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree stipulates the efficient and economical use of energy in industrial production, in buildings, for energy-consuming equipment and vehicles, and in people's daily life.

Article 2. Applicability

This Decree applies to all organizations and individuals residing, operating, and working on the territory of Vietnam, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise.

Article 3. Definitions

2. Self-generated and self-consumed electricity is electricity produced and consumed by an organization or individual to serve their own needs.

1. Energy is a form of matter capable of performing work, including primary energy sources such as coal, oil, natural gas, and secondary energy sources such as thermal energy and electrical energy generated through the conversion of primary energy sources.

2. Efficient and economical use of energy means using energy in a rational manner to reduce energy consumption, lower energy costs for the operation of energy-consuming devices and vehicles, while ensuring necessary energy requirements for production processes, services, and daily activities.

3. Key energy-consuming facilities are those with annual fuel and thermal energy consumption equivalent to or exceeding one thousand tons of oil (1,000 TOE), or average electrical power usage of five hundred kilowatts (500 kW) or more, or annual electrical energy consumption of three million kilowatt-hours (3,000,000 kWh) or more.

4. Buildings are high-rise structures used as supermarkets, hotels, offices, government offices, and residences.

5. Selected buildings are one or more buildings at the same address that meet one of the following conditions:

- Supplied with electricity from a transformer substation with total installed capacity of 750 KVA or more.

- Using commercial energy, including electricity and thermal energy, totaling ten million megajoules (10,000,000 MJ) or two million eight hundred thousand kilowatt-hours (2,800,000 kWh) of electricity equivalent or more in a year.

6. Energy-saving products are devices and vehicles with high efficiency and low energy consumption, and insulating materials with good insulation coefficients, designed, manufactured, produced, and tested in accordance with Vietnamese standards on energy consumption limits and energy loss limits.

Chapter II

USE OF ENERGY IN PRODUCTION FACILITIES

Article 4. Technical measures

Production facilities shall implement efficient and economical use of energy through the following main measures:

1. Improving and rationalizing fuel combustion processes.

2. Improving and rationalizing heating, cooling, and thermal-to-mechanical energy conversion processes.

3. Reducing heat losses due to heat transfer.

4. Reusing waste heat.

5. Improving and rationalizing thermal-to-electrical energy conversion processes.

6. Reducing electrical energy losses during transmission, distribution, and use.

7. Improving and rationalizing the process of converting electrical energy into mechanical and thermal energy.

8. Selecting and replacing energy sources reasonably to achieve higher energy efficiency.

9. Promoting the use of renewable energy sources to conserve non-renewable energy sources such as coal, oil products, and natural gas.

Article 5. Responsibilities of production facilities

1. Production facilities operating in the following sectors shall be responsible for implementing measures for efficient and economical use of energy:

a) Facilities processing, manufacturing goods; repair shops for machinery and equipment;

b) Mining operations;

c) Production and supply of electrical energy;

d) Production and supply of thermal energy.

2. Each year, production facilities specified in Clause 1 of this Article must register energy-saving targets, compile statistics on energy use, energy consumption per unit of product, and report to the Department of Industry; for key facilities, they must also report to the Department of Industry and the Ministry of Industry.

Article 6. Responsibilities of key energy-consuming facilities

1. Each year, key energy-consuming facilities must report to the Department of Industry and the Ministry of Industry on their energy use situation, conditions, and efficiency; on the dismantling, improvement, replacement, and installation of new energy-consuming machinery and equipment; and on the installation of machinery and equipment for efficient and economical energy use.

2. Establish responsibility systems for each group and individual involved in the implementation of efficient and economical energy use, with reward systems for groups and individuals with achievements and disciplinary measures for those who violate regulations on efficient and economical energy use.

3. Must have dedicated staff assisting the Director in managing energy. Dedicated staff for energy management must have a university degree and training in energy-related fields.

4. Dedicated staff for energy management are responsible for assisting the Director in managing and supervising energy-consuming equipment and the implementation of energy-saving measures, in accordance with the provisions of the Ministry of Industry.

5. In cases where key energy-consuming facilities fail to fully comply with established energy consumption limits and standards as provided for in Point b, Clause 3, Article 20 of this Decree, the Ministry of Industry will notify them of actions required and request them to develop and submit for approval plans for efficient and economical energy use.

Chapter III

USE OF ENERGY IN BUILDINGS

Article 7. Responsibilities in investment and construction of buildings

Organizations and individuals participating in design consultancy, investment, construction, and ownership of buildings shall be responsible for implementing the following measures for efficient and economical use of energy:

1. Utilizing natural conditions or appropriate architectural designs to reduce energy consumption for lighting, ventilation, cooling, and heating.

2. Using insulating materials produced according to energy-saving standards to limit heat transfer through walls, doors, and windows.

3. Installing energy-efficient devices in buildings in accordance with energy-saving standards.

4. Arrange equipment reasonably to achieve high efficiency in the direction of energy conservation.

Article 8. Selected buildings

1. The design and construction of selected buildings and building components must comply with the standards, regulations, and design norms on energy-efficient and effective use of energy issued in accordance with point c, Clause 3, Article 20 of this Decree.

2. In the application dossier for construction permit of selected buildings, there must be documentation explaining measures for energy-efficient and effective use of energy.

3. The Ministry of Construction shall have the responsibility to guide and require the implementation of necessary measures to ensure energy-efficient and effective use of energy in cases where organizations and individuals participating in design consultancy, investment, construction, and ownership of buildings have not implemented such measures.

Article 9. Official offices

1. New official offices constructed from state budget funds must comply with the standards and design norms on energy-efficient and effective use of energy issued in accordance with point c, Clause 3, Article 20 of this Decree.

2. Annually, in conjunction with the repair and maintenance of office equipment, state agencies shall develop specific plans within their annual budgets to gradually replace old and outdated equipment that consumes large amounts of energy with new equipment that has been identified as energy-saving products with advanced energy consumption indicators in lighting, ventilation, air conditioning, water pumping, and other living equipment, aiming to reduce energy consumption at workplaces.

Chapter IV

ENERGY-CONSUMING EQUIPMENT AND MEANS

Article 10. Responsibilities of manufacturers and importers

Organizations and individuals who are manufacturers, traders, or importers of energy-consuming equipment and means shall be responsible for applying scientific and technological solutions to produce energy-saving equipment and provide customers with all necessary information related to the performance and energy consumption levels of the equipment and means.

Article 11. Selected equipment

1. Energy-consuming equipment and means subject to strict management include those widely used domestically and consuming large volumes of energy as specified in the list established by competent state management agencies.

2. The Ministry of Industry recommends or provides support to manufacturers to improve the energy consumption characteristics of selected equipment, thereby enhancing the energy efficiency standards of such equipment.

Article 12. Energy-saving quality label

1. Organizations and individuals manufacturing, importing, or trading products which are energy-consuming equipment and means must clearly indicate the energy consumption index in the user manual or on the product label.

2. Based on national standards on energy consumption limits issued in accordance with point b, Clause 3, Article 20 of this Decree and relevant laws on product quality according to energy efficiency criteria, organizations and individuals engaged in the manufacture or importation of energy-consuming equipment and means shall self-declare and bear full responsibility for ensuring the quality of energy efficiency of their products.

On the basis of products meeting the prescribed standards, organizations and individuals may apply for certification and affix labels certifying that their products meet energy-saving standards.

Chapter V

ENERGY USE IN DAILY LIFE

Article 13. Responsibility for energy conservation in daily life

Organizations and individuals are responsible for using advanced energy-consuming equipment for lighting, ventilation, air conditioning, water pumping, and other daily-use equipment to replace outdated equipment, thereby reducing energy costs and contributing to the implementation of the state's energy conservation policy.

Article 14. Measures for energy-efficient and effective use in daily life

1. Apply reasonable pricing policies for energy use in daily life to promote energy-efficient and effective use.

2. Apply guidelines issued by the Ministry of Construction in accordance with point c, Clause 3, Article 20 of this Decree when using construction materials and energy-intensive equipment such as air conditioners, mechanical equipment for ventilation purposes, lighting equipment, hot water supply equipment, and elevators installed in residential buildings to achieve energy-efficient and effective use.

3. Minimize the use of high-power electrical appliances during peak hours of the power system load curve.

Chapter VI

MEASURES TO ENCOURAGE AND PROMOTE ENERGY-EFFICIENT AND EFFECTIVE USEENERGY-EFFICIENT AND EFFECTIVE USE

Article 15. Supportive policies to encourage energy-efficient and effective use

1. Imported equipment, materials, production lines, and products listed in the catalog of energy-saving products encouraged for production or importation shall enjoy tax benefits in accordance with the provisions of the law.

2. State-owned enterprises implementing energy-saving measures shall be rewarded in accordance with the financial management and business accounting regulations for state-owned enterprises.

3. Enterprises with projects to produce energy-saving products, import new production lines, or invest deeply to save energy may be considered for medium- or long-term loans from the Development Fund or the Science and Technology Development Fund.

Article 16. Measures to promote science and technology serving the goal of energy-efficient and effective use

1. Annually, the Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities shall be responsible for developing programs and projects to promote energy conservation and efficiency, allocating appropriate financial resources for scientific research and technological development and environmental protection with a suitable proportion for scientific research and technological development serving the goal of energy conservation and efficiency.

2. The contents of programs and projects to promote energy conservation and efficiency include:

a) Developing appropriate energy-saving and efficient technologies suitable for various industries that play a significant role in the national economy;

b) Supporting research and development and application of common energy-saving techniques that have been proven effective in practice;

c) Introducing and applying energy-saving technologies, providing extensive information related to energy-saving technologies.

Article 17. Enhancing awareness on energy conservation and efficiency

1. The Ministries, ministerial-level agencies, agencies under the Government, and People's Committees of provinces and centrally governed cities shall organize dissemination and propaganda through mass media and other activities to raise public awareness and encourage public participation in the field of energy conservation and efficiency.

2. Measures to enhance awareness on energy conservation and efficiency include:

a) Training, building, and developing specialized staff for energy conservation management for facilities, sectors, and localities;

b) Popularizing energy conservation knowledge through mass media communication programs;

c) Incorporating energy conservation promotion into the activities of science and technology associations and mass organizations. Organizing creative competitions on energy conservation and conducting energy conservation mobilization campaigns.

Article 18. National Target Program on Energy Conservation and Efficiency

Based on economic and social development goals, the Ministry of Industry shall take the lead, in coordination with relevant ministries and sectors, to develop and submit to the Prime Minister the National Target Program on Energy Conservation and Efficiency, including the following contents:

1. Researching and developing projects on energy conservation and efficiency, promoting environmental protection, and addressing environmental issues arising from energy production and consumption.

2. Developing plans for energy conservation and efficiency.

3. Educating, training, disseminating information, and propagandizing the community in the fields of energy conservation and efficiency development, and environmental protection.

Chapter VII

STATE MANAGEMENT OF ENERGY CONSERVATION AND EFFICIENCY

Article 19. Contents of state management of energy conservation and efficiency

1. Issuing legal normative documents on energy conservation and efficiency; organizing guidance and inspection of implementation.

2. Issuing regulations on energy conservation advisory work, energy audit, certification of quality standards, and labeling of energy-saving product quality.

3. Formulating policies on the import of equipment and machinery, technology transfer policies, organizing research and application of scientific and technological advances in the field of energy conservation.

4. Propaganda, dissemination of information, and popular education on energy conservation and efficiency.

5. Organizing and managing international cooperation activities in the field of energy conservation.

6. Training human resources in the field of energy conservation and efficiency.

7. Inspecting and auditing activities related to energy conservation and efficiency.

Article 20. State Management Agencies for Energy Conservation and Efficiency

1. The Government shall uniformly manage state affairs concerning energy conservation and efficiency.

The Ministry of Industry shall be responsible before the Government for implementing state management of energy conservation and efficiency, undertaking the following tasks:

a) Coordinating with relevant ministries and sectors to build and submit to the Prime Minister for approval the National Target Program on Energy Conservation and Efficiency and managing its implementation;

b) Building and submitting to the Prime Minister policies and measures to implement policies on energy conservation and efficiency.

c) Building and submitting to the Prime Minister annual energy-saving plans according to five-year plans and implementing annual plans;

d) Compiling a list of selected equipment, energy-saving products, and products not allowed to be transferred or phased out, to be submitted to the Prime Minister for decision and announcement annually;

đ) Coordinating state management activities on energy conservation and efficiency among ministries, sectors, and localities;

e) Guiding the implementation of energy conservation and efficiency for production establishments, including: preparing and submitting for approval energy conservation and efficiency usage plans, reporting on energy usage situations, and conducting energy audits;

g) Issuing regulations on the responsibility of manufacturers to ensure operational characteristics and energy consumption requirements for each type of selected equipment and providing information related to the energy efficiency of selected equipment in product labels;

h) Specifying the format for labeling energy-saving product certifications;

i) Specifying the organization of advisory bodies with sufficient capacity to operate in the field of energy conservation advisory work, energy audit, pre-certification quality testing for energy-saving products or allowing labeling of energy-saving product certifications.

3. Tasks and authorities of the Ministries, ministerial-level agencies, and agencies under the Government in managing energy conservation and efficiency activities:

a) The Ministries, ministerial-level agencies, and agencies under the Government, within their functions, tasks, and authorities, shall be responsible for coordinating with the Ministry of Industry to implement state management tasks on energy conservation and efficiency in each sector and locality;

b) The Ministry of Science and Technology:

Issuing national standards on energy consumption limits for commonly used energy-consuming equipment and vehicles;

Issuing regulations on the inspection work of devices and products meeting or conforming to national standards on energy consumption limits;

c) The Ministry of Construction:

Issuing technical standards and norms on energy conservation and efficiency in the construction of high-rise buildings;

Specifying the quality and thermal insulation characteristics of various building materials. Guiding organizations and individuals in producing, supplying, and using suitable building materials to reduce heat transmission;

Guiding investors, owners of high-rise buildings, and household heads to implement measures for energy conservation and efficiency concerning air conditioning units and other mechanical equipment for ventilation purposes, lighting equipment, hot water supply equipment, and elevators;

d) The Ministry of Transport:

Cooperating with the Ministry of Industry to guide manufacturers in implementing regulations on energy conservation and efficiency for energy-consuming vehicles in the transportation sector;

đ) The Ministry of Finance:

Guiding the implementation of financial policy measures encouraging the use of energy conservation and efficiency as stipulated in Article 15 of this Decree;

4. Tasks and authorities of provincial People's Committees in managing energy-saving activities and efficiency:

a) Provincial People's Committees shall perform state management functions regarding energy conservation and efficiency at the local level according to the guidance of the Ministry of Industry and related ministries and sectors;

b) Provincial People's Committees shall define the functions, tasks, and organizational activities in the field of energy conservation and efficiency for the Department of Industry and Construction Departments at the local level;

Chapter VIII

INSPECTION, AUDIT AND VIOLATION HANDLING

Article 21. Reporting and inspecting

1. Key energy-consuming facilities shall be responsible for periodically reporting to the Department of Industry and the Ministry of Industry on matters related to energy usage conditions, operational status of equipment at production facilities as prescribed in Clause 1, Article 6 of this Decree. In necessary cases, the Ministry of Industry may conduct on-site inspections of energy-consuming equipment along with relevant files and documents;

2. In case key energy-consuming facilities fail to fully comply with requirements set out in their energy conservation and efficiency plans,, The Ministry of Industry shall issue a notice reminding such facilities to strictly adhere to approved energy conservation and efficiency plans;

3. To fulfill the task prescribed in Clause 3, Article 8 of this Decree; in necessary cases, the Ministry of Construction has the right to request organizations and individuals involved in consulting design, investment, construction, and ownership of buildings to report issues related to design and construction or to conduct on-site inspections of buildings and relevant files and documents;

4. To fulfill the task prescribed in Clause 2, Article 11 of this Decree; in necessary cases, the Ministry of Industry has the right to request manufacturers of selected equipment to report issues related to the operational characteristics of the equipment or to conduct on-site inspections at factories, warehouses, and relevant files and documents;

5. On-site inspections prescribed in Clauses 1, 2, 3, and 4 of this Article must be carried out in accordance with the provisions of laws on inspection and supervision;

Article 22. Violations and levels of fines

1. A fine of VND 1 million to VND 3 million for organizations and individuals who do not clearly indicate energy consumption indicators in product descriptions or labels;

2. A fine of VND 1 million to VND 5 million for any of the following acts:

a) Producing energy-consuming equipment and vehicles with outdated technical characteristics that have been ordered to cease production;

b) Importing energy-consuming equipment and vehicles with outdated technical characteristics that have been banned from importation;

c) Transferring energy-consuming equipment and vehicles that must be phased out;

d) Using counterfeit energy-saving product certification labels or using them fraudulently (without inspection);

đ) Using counterfeit energy-saving quality certificates for products;

3. A fine of VND 5 million to VND 10 million for the following act:

a) Key energy-consuming facilities failing to implement energy conservation and efficiency plans without justifiable reasons;

b) Organizations and individuals repeatedly transferring energy-consuming equipment and vehicles that must be phased out;

4. Depending on the nature and degree of violation, individuals and organizations violating administrative regulations may also be subject to one or more of the following supplementary penalties:

a) Revocation of the right to use energy-saving product certification labels and energy-saving quality certificates;

b) Confiscation of objects and means used to commit administrative violations.

ư5. In addition to the main penalties and supplementary penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, individuals and organizations violating administrative regulations may also be subject to one or more of the following remedial measures:

a) Compelling the removal of energy-consuming equipment and vehicles with outdated technical characteristics that have been banned from importation from Vietnam or requiring their re-export;

b) Compelling the phasing out of energy-consuming equipment and vehicles that must be phased out;

Article 23. Authority to impose administrative penalties

1. Provincial People's Committees and specialized inspectors have the authority to impose penalties for violations of this Decree as prescribed in the Administrative Offense Handling Ordinance;

2. In cases where the violation falls under the jurisdiction of multiple agencies, the agency that first handles the case shall impose the penalty;

Article 24. Awards and disciplinary actions

1. Organizations and individuals with achievements in energy conservation and efficiency activities will be considered for rewards according to the law;

2. In cases of abuse of power, personal gain, or lack of responsibility, they will be disciplined or criminally prosecuted depending on the severity, and if damage is caused, compensation must be provided according to the law.

Chapter IX

IMPLEMENTING PROVISIONS

Article 25. Effectiveness of the Decree

This Decree takes effect fifteen days after its publication in the Official Gazette.

Article 26. Implementation

The Minister of Industry, the Ministers of relevant ministries, and the Heads of relevant agencies as specified in Chapter VII shall be responsible for guiding the implementation of this Decree based on their respective functions and tasks.

Article 27. Responsibility for Implementation

The Ministers, the Heads of ministerial-level agencies, the Heads of government agencies, and the Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.