Decision No. 80/2006/QD-TTg Approving the Electricity Saving Program for the 2006-2010 period

DECISION OF THE PRIME MINISTER

Approving the Electricity Saving Program for the 2006-2010 Period

THE PRIME MINISTER

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

Pursuant to the Electricity Law dated December 3, 2004;

Pursuant to the proposal of the Minister of Industry,

DECISION:

Article 1. Approves the Electricity Saving Program for the 2006-2010 period, which includes the following main contents:

I. Objectives of the Program:

Enhancing public awareness, fostering the habit of using electricity efficiently and economically for sustainable national development, integrating electricity-saving activities into daily life of every household and society.

Ensuring efficient and economical electricity usage, stabilizing power supply for production, business, consumption, minimizing interruptions and reductions in power supply to the lowest possible extent.

II. Contents of the Program:

1. Mobilizing the whole people to participate in electricity saving

a) Objectives:

Strengthening propaganda, information dissemination, education, mobilization of the community, raising awareness, changing habits of electricity usage, promoting electricity-saving and efficient activities throughout society.

b) Content:

- Developing radio and television programs on electricity saving broadcasted by Vietnam Radio, Vietnam Television, local radio and television stations with appropriate duration through formats such as live discussions, technology news, reports on electricity-saving activities, showcasing exemplary models of electricity saving...

- Developing a specialized television program introducing energy-saving products, providing necessary information about energy-saving products, guiding and encouraging energy-saving habits, focusing on areas such as lighting equipment, air conditioning, refrigerators, office equipment, and other electrical devices.

- Organizing training courses and workshops on electricity saving for management staff, technical personnel, propagandists, etc., nationwide.

- Organizing campaigns and creating conditions for the whole society to participate in the electricity-saving program, such as organizing competitions, incentive movements, showcasing exemplary models like "electricity-saving families," units, factories, energy-efficient buildings...

- Distributing leaflets, posters, advertisements, small books guiding efficient and economical electricity usage, introducing exemplary electricity-saving models from localities and enterprises, promptly disseminating and expanding application.

- Establishing an online information portal on energy saving managed by the Ministry of Industry, operational from 2006.

c) Implementation organization:

- The Ministry of Industry will take the lead, coordinating with Vietnam Radio, Vietnam Television, Vietnam Power Corporation to develop specific plans, detailed contents, and implementation schedules for specialized radio and television programs on electricity saving;

- The Ministry of Culture and Information will direct provincial Departments of Culture and Information, mass media agencies under central cities and provinces, localities to actively promote the State's policies on electricity saving and mobilize the entire population to implement electricity-saving measures.

- Vietnam Power Corporation will cooperate with mass media agencies to strengthen electricity-saving propaganda activities, establish and implement electricity-saving propaganda plans suitable to power supply situations, advise on electricity-saving measures, guide rational electricity usage, and announce power reduction schedules when there is a shortage of electricity.

- People's Committees of provinces and centrally-administered cities:

+ Coordinate with the Ministry of Industry and Vietnam Power Corporation to direct provincial Departments and local Energy Saving Centers to organize communication activities in their respective areas.

+ Direct the inclusion of electricity-saving content in county, commune, village, and tribal radio broadcasts.

2. Electricity Saving at Government Offices and Agency Premises

a) Objectives:

Incorporating electricity-saving and efficient practices into the routine operations of offices and agencies, achieving at least a 10% reduction in annual electricity costs.

b) Content:

Establishing regulations on electricity usage and replacement, repair of electrical equipment in offices and agencies ensuring the following principles:

- Turning off unnecessary electrical devices when leaving rooms and ending work hours. Completely disconnecting power sources if not using devices after work hours.

- Maximizing natural light and ventilation, reducing artificial lighting when the number of people working in a room decreases. Designing and installing common lighting systems reasonably, reducing the number of common lights in corridors, courtyards, gardens, and fences by at least 50%.

- Using air conditioners only when absolutely necessary and setting cooling temperatures no lower than 25 degrees Celsius. Using fans instead of air conditioners when the weather is not excessively hot.^°C

- Starting from 2006, only high-efficiency T8 fluorescent lamps (36W/32W, 18W) and T5 lamps will be used to replace low-efficiency T10 fluorescent lamps (40W, 20W) that have burned out, and compact fluorescent lamps will replace incandescent bulbs (round bulbs) in suitable positions, ensuring that within a short time, only energy-efficient lighting sources and equipment (including ballasts) remain in use. When replacing electrical equipment, encourage the installation of energy-efficient devices bearing energy-saving labels.

c) Implementation organization:

- Leaders of agencies and units are responsible for issuing regulations on electricity-saving and efficient usage in their agencies to achieve at least a 10% reduction in annual electricity consumption. Appointing responsible officers to develop plans, urge, and regularly inspect electricity usage in agencies and units. Reporting quarterly and annually to relevant Ministries and People's Committees of provinces and centrally-administered cities on the implementation of electricity-saving measures at the grassroots level.

- Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of People's Committees of provinces and centrally-administered cities are responsible for directing the planning, implementation, and supervision of energy-saving measures in offices under their jurisdiction, compiling and reporting quarterly and annually on the implementation of electricity-saving measures to the Prime Minister.

- The Ministry of Finance shall guide and inspect the reduction of at least 10% in electricity consumption costs for agencies and units receiving state budget funds.

3. Electricity Saving in Daily Life and Business Services

a) Objectives:

Foster habits of using electricity efficiently and economically, be conscious about using high-efficiency electrical devices, reduce the use of high-power devices during peak hours, and cooperate with the power industry to implement power cuts and reduce electricity consumption when there is a shortage of electricity.

b) Content:

Mobilize households using electricity in daily life and business services to respond to the nationwide movement to save electricity for the benefit of families and communities, ensuring the following principles:

- Households should limit the use of large electricity-consuming devices (air conditioners, hot water tanks, electric irons...) during peak hours, encourage the use of energy-saving light bulbs such as compact fluorescent lamps or T8, T5 fluorescent tubes, high-efficiency ballasts, and energy-efficient labeled equipment, and disconnect unused devices from the power source.

- Restaurants and commercial service establishments must strictly comply with local regulations on energy-saving lighting, be ready to cut down on electricity usage when notified by the local power company in case of electricity shortages; use energy-saving lighting fixtures; encourage switching to other types of energy sources like gas or new energy...

- Starting from 2006, research, develop, and gradually implement time-of-use electricity pricing for residential households.

c) Implementation organization:

- The Ministry of Industry shall take the lead and coordinate with relevant ministries and sectors to organize detailed plans and implement them.

- The Ministry of Culture and Information shall take the lead and coordinate with the Ministry of Industry, Vietnam Power Corporation, and mass media to intensify propaganda efforts to promote electricity saving among the people.

- Vietnam Power Corporation shall coordinate with local Industrial Departments to conduct surveys and reach agreements with business service customers regarding load profiles and their ability to cut down on electricity demand in case of shortages.

4. Electricity Saving in Industrial Production

a) Objectives:

Manage and monitor the level of electricity consumption in production and business operations of industrial enterprises, encourage and eventually mandate the application of advanced energy consumption standards per unit product for certain energy-intensive industries.

b) Content:

Short-term solutions:

- Develop measures for efficient and economical electricity use, ensuring compliance with contracted power purchase agreements' registered capacity and load profiles.

- Plan production schedules reasonably, minimize the activation of large power-consuming devices such as crushers, water pumping stations, air compressors... during peak hours, and avoid operating electrical equipment without load.

- Prepare backup resources to meet production needs during electricity shortages, and develop plans to reduce loads when shortages occur.

Medium-term solutions:

- Establish and issue energy consumption standards per unit product for certain energy-intensive industries to serve as a basis for managing and monitoring energy consumption in industrial enterprises.

- Develop and expand energy management systems that promote efficient and economical energy use in businesses according to models suitable for Vietnam's conditions, creating positive changes in energy management practices.

- Compile and disseminate materials on energy management, sharing successful experiences both domestically and internationally on efficient and economical energy use.

- Organize training sessions for specialized energy management staff in industrial production enterprises and officials from Industrial Departments and Science and Technology Departments.

- Support industrial enterprises in establishing energy management systems within businesses, implementing structured energy-saving management models for at least 40% of key energy-consuming enterprises nationwide during the period 2006-2010.

c) Implementation organization:

- The Ministry of Industry shall lead and direct Industrial Departments, coordinate with consulting organizations, energy conservation centers, and industrial production enterprises to develop detailed content and organize implementation.

- Heads of production facilities are responsible for planning and implementing electricity-saving measures in industrial production enterprises; establish electricity consumption standards, regulations on reducing electricity consumption during shortages, and report quarterly and annually to provincial People's Committees on electricity usage status.

- Vietnam Power Corporation shall instruct power companies to coordinate with local Industrial Departments to reconcile actual electricity usage load profiles and sign supplementary power purchase contracts or agreements on the ability to cut down on electricity consumption when notified of power supply reductions.

5. Electricity Saving for Electricity Production and Trading Units

a) Objectives:

Strengthen and maintain regular implementation of electricity-saving measures throughout production, transmission, distribution, and trading processes.

b) Content:

- Vietnam Power Corporation shall intensify its program to reduce electricity losses, aiming to bring losses down to 11% by 2006 and 9% by 2010.

- For power companies with peak-to-off-peak power ratio (Pmax/Pmin) > 2.5 times, the power company shall work with the Industrial Department to propose rotating three-shift schedules for local industrial enterprises, submit these proposals to the provincial People's Committee for approval and implementation, thereby adjusting load profiles reasonably and avoiding power restrictions in the locality.

The provincial and centrally-administered municipal Electricity Enterprises shall be responsible for coordinating with the Provincial Industry Departments to advise the People's Committees of provinces and centrally-administered municipalities on implementing power-saving measures when there is a power shortage in accordance with Directive No. 19/2005/CT-TTg dated June 2, 2005 of the Prime Minister; prepare a list of production households in priority order for power reduction or supply restriction during power shortages, submit it to the People's Committee of the province or centrally-administered municipality for approval and implementation in accordance with the Electricity Law.

- The Electricity Enterprises shall assist the People's Committees of provinces and centrally-administered municipalities in monitoring and reporting the electricity usage situation at public offices, agencies, and state-owned enterprises within their jurisdiction, comparing it with the electricity consumption level of the same period in the previous year, and checking against the target of reducing electricity consumption by 10% in public offices, promptly informing customers and reporting to the People's Committee of the province or centrally-administered municipality to take appropriate measures against customers who fail to implement power-saving measures.

c) Implementation organization:

- The Electricity Enterprises shall advise the People's Committees of provinces and centrally-administered municipalities on supervising the implementation of power-saving measures within their jurisdiction.

- The Vietnam Electricity Corporation shall direct its subordinate Electricity Enterprises to implement the above contents, organize monthly evaluations of the implemented power-saving measures, compile and report to the Prime Minister.

6. Power Saving for Electrical Equipment

a) Objectives:

Establish mechanisms to encourage and promote manufacturers and importers to introduce high-efficiency electrical equipment to the market, gradually phasing out low-efficiency electrical equipment.

Disseminate information and guide customers to recognize and choose energy-efficient products on the market.

b) Content:

- The Ministry of Industry shall issue Circulars guiding the labeling certification of high-efficiency electrical products; from 2006 to 2010, implement energy-saving labels for five targeted product categories including electric motors, electric fans, air conditioners, fluorescent lamps, and ballasts for fluorescent lamps.

- Develop technical support measures and financial mechanisms to encourage investment in changing production technology chains, testing systems... in manufacturing and importing energy-saving products, limiting the production, importation, and use of low-efficiency electrical equipment.

c) Implementation organization:

- The Ministry of Industry shall lead and coordinate with relevant ministries and sectors to develop detailed plans and implement them.

- The Ministry of Science and Technology shall lead in developing and issuing standards on energy efficiency for targeted products; cooperate with the Ministry of Industry in surveying and evaluating energy-consuming devices circulating in the market to serve the labeling of energy-saving products.

- The Ministry of Finance shall cooperate with the Ministry of Industry to establish appropriate financial mechanisms to encourage the production and importation of energy-saving products.

7. Efficient Lighting Program

a) Objectives:

Save and use electricity efficiently through energy savings in lighting, encouraging the production and consumption of energy-efficient lighting products to gradually reduce the number of incandescent bulbs consumed. Strive to have only 10 million incandescent bulbs on the market by 2010.

b) Content:

- For public lighting, apply the following solutions:

+ Inspect and evaluate public lighting conditions according to current lighting standards, ensuring effective and economical lighting principles (Vietnamese Technical Standard TCXDVN 259: 2001).

+ Apply automatic control systems with power adjustment modes to reduce nighttime lighting power when traffic density decreases. Implement investments and equip automatic control systems for main street lighting systems, using high-efficiency lighting equipment when replacing faulty lights: high-pressure sodium and low-pressure sodium lamps for street lighting; small low-pressure sodium lamps and compact lamps for alley and pedestrian path lighting; metal halide lamps for squares.

- In daily life, business services, and industrial production: Encourage the use of energy-efficient light sources and equipment such as T8 fluorescent lamps (36W, 32W, 18W), T5 fluorescent lamps, compact lamps, and high-efficiency ballasts.

- In government offices and enterprise headquarters: Maximize natural light for illumination, rationally design and install artificial lighting systems, using only T8 fluorescent lamps (36W, 32W, 18W), T5 fluorescent lamps, and compact lamps to replace burnt-out T10 fluorescent lamps and incandescent bulbs.

- Develop and implement a roadmap to replace 40 million incandescent bulbs with various types of energy-efficient fluorescent lamps (high-efficiency T8, T5 fluorescent lamps, and compact lamps) to reduce the number of incandescent bulbs on the market to 10 million by 2010.

- Develop and implement technical support measures and financial mechanisms to encourage investment in changing production technology chains, evaluation and testing systems... in manufacturing lighting equipment and producing high-efficiency fluorescent lamps, limiting the production of incandescent bulbs.

c) Implementation organization:

- The Ministry of Industry shall lead and coordinate with the People's Committees of provinces and centrally-administered municipalities, the Vietnam Urban Lighting Association, lighting equipment manufacturers... to develop detailed outlines to implement the program.

- The Ministry of Finance shall cooperate with the Ministry of Industry to establish appropriate financial mechanisms to encourage domestic manufacturers to produce energy-saving lamps.

- The Vietnam Electricity Corporation:

+ Continue implementing the program to replace one million energy-efficient lamps in cooperation with the World Bank, monitor the results, draw lessons learned, and report to the Prime Minister in June 2006.

+ Improve the quality of the national power grid, especially in rural areas, remote regions. Ensure technical conditions regarding voltage quality for energy-efficient fluorescent lamps.

8. Promote the widespread use of water heating devices powered by solar energy and other alternative forms of energy.

a) Objectives:

Encourage research, production, importation, and use of water heating devices for daily life and services powered by solar energy and other forms of energy for households and buildings (shopping centers, apartment complexes, hospitals, schools, government offices...).

b) Content:

- Develop and issue Circulars guiding financial incentives to encourage the development of renewable energy sources in general and the application of renewable energy technologies as alternatives to electricity usage in particular.

- Promote research, production, importation, and use of water heating devices for daily life and services with the aim of gradually removing obstacles and establishing a market for the development of this technology.

- Establish programs for researching and manufacturing, testing water heating devices powered by solar energy and other forms of energy at various power scales suitable for Vietnam's conditions.

- Develop and issue technical standards for the manufacture and installation of water heating devices powered by solar energy and other forms of energy.

- Demonstration project: install demonstration water heating devices powered by solar energy and other forms of energy at some hospitals, health stations, schools, and residential houses in several cities, towns, and provincial towns across the country.

c) Implementation organization:

The Ministry of Industry shall take the lead and coordinate with relevant ministries and sectors to organize the detailed planning and implementation of the following tasks.

- Coordinate with the Ministry of Culture, Sports and Tourism and relevant ministries and sectors, social organizations to develop programs to raise awareness and guide the use of water heating devices through mass media such as newspapers, radio, television, training institutions...

- Coordinate with the Ministry of Science and Technology and relevant ministries and sectors to develop research and manufacturing, testing, issuing standards... for water heating devices powered by solar energy and other forms of energy.

- Coordinate with the People's Committees of provinces and centrally governed cities to develop demonstration projects.

Article 2. Implement the Electricity Saving Program for the period 2006-2010.

1. Assignment of Implementation

a) The Ministry of Industry shall be responsible for taking the lead and coordinating with relevant ministries, sectors, and related organizations to implement the contents of the Program.

b) The Ministry of Finance:

- Coordinate with the Ministry of Industry to establish appropriate financial mechanisms to encourage domestic manufacturers and importers to produce and import energy-saving products.

- Balance funds for the contents of the Electricity Saving Program, incorporate them into the five-year plan from 2006 to 2010, and allocate necessary funding from 2006 to promptly implement the aforementioned contents.

c) The Ministry of Culture, Sports and Tourism, Vietnam Television, Voice of Vietnam Radio shall coordinate with the Ministry of Industry and Vietnam Power Corporation; direct Provincial Departments of Culture, Sports and Tourism, local radio and television stations to develop radio and television programs on electricity saving; while directing mass media outlets to allocate appropriate time slots to publicize the State's policies on implementing electricity-saving measures.

d) Vietnam Power Corporation:

- Direct electricity companies to advise the People's Committees of provinces and centrally governed cities to supervise the implementation of electricity-saving measures in their respective areas.

- Implement the provisions stipulated for electricity production and trading units, organize monthly evaluations of implemented electricity-saving measures.

đ) Ministries, agencies equivalent to ministries, agencies under the Government, People's Committees of provinces and centrally governed cities shall have the responsibility to coordinate with relevant agencies to implement this Program.

2. Financial Solutions

Coordinate and integrate funds allocated from the state budget, financial support from international organizations, individuals both inside and outside the country, contributions from participating enterprises to implement the Program.

- Funds from the state budget to sponsor promotional programs, raise community awareness about participation in electricity saving, and organize the implementation of the Program.

- Provide preferential loans according to the provisions of Decree No. 106/2004/NĐ-CP dated April 1, 2004 of the Government on state investment credit for development.

- Financial support from organizations and individuals both inside and outside the country to integrate cooperative projects with international organizations on energy efficiency and energy conservation currently being implemented and formed as part of the Program.

- Contributions from participating enterprises for communication and promotion programs on electricity saving and energy-efficient lighting; contribute to organizing the implementation of Program contents within enterprises.

3. Management, Supervision, and Evaluation

- The Ministry of Industry shall be responsible for coordinating and inspecting all activities of the Program to achieve set goals for each target group. Regularly organize supervision and evaluation of electricity-saving measures every six months and report to the Prime Minister.

- Ministers, Heads of agencies equivalent to ministries, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for directing the establishment of plans and implementation; while strengthening inspections and handling violations according to the law.

Article 3. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 4. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.