Introduction

"Energy Partnership Programme between Viet Nam and Denmark 2020 - 2025" (from now on referred to as DEPP3) is a technical assistance program funded by the Danish Government with total ODA of DKK 60.29 million, approximately $8.96 million. Vietnam's counterpart capital is VND 7.593 billion ($326.514). Ministry of Industry and Trade is the governing body of the DEPP3. The Department of Energy Efficiency and Sustainable Development (MOIT) is the program owner. The Program Document is Decision No. 2734/QD-BCT approved by the Minister of Industry and Trade dated October 23rd, 2020. The Signing Ceremony was held on October 28th, 2020, in order to implement the Government's  Decision No. 123/NQ-CP dated October 6th, 2020, on the signing of an Agreement between the Government of Vietnam and the Government of Denmark on development cooperation in the Energy Partnership Program between Viet Nam and Denmark 2020-2025 period.
The Program was built in the Danish Government's Energy Partnership Program framework with four countries, including Vietnam, China, South Africa, and Mexico, to assist them in implementing the nationally determined contribution (NDC) on the carbon dioxide emission reduction the Paris Agreement. The DEPP3 Program was designed to continuously promote the preceding phases' achievements, the Energy Partnership Program between Viet Nam and Denmark 2017 - 2020 period (DEPP2), implemented from December 2017 to the end of October 2020. The results were evaluated as valuable, providing recommendations to push energy efficiency, level up proportions of renewable energy resources integrated into the grid, and build capacity. Furthermore, they also offered tools for authorities and stakeholders to synchronically implement, from planning to real-time operation with a high percentage of renewable energy resources in the grid, and strengthened the Law on Economical and Efficient Use of Energy. 
COUNTRY PROGRAMME OBJECTIVE  
Vietnam develops low carbon pathways related to energy in support of their NDC and Vietnam upscales NDC mitigation targets and related measures by 2025.
SPECIFIC OBJECTIVES/OUTCOMES
Development Engagement 1: Capacity Development for long-term energy sector planning
Outcome: Capacity enhanced in energy sector planning and policy development, integrating renewable energy, including offshore wind and energy efficiency technologies, as cost-effective measures of meeting the Vietnamese NDCs while ensuring national security of supply.
Development Engagement 2: Capacity Development for Renewable Energy Integration into the Power System
Outcome: Regulatory framework and flexible options in the power system supports the efficient and secure transition towards clean energy with a rising share of electricity from variable renewable energy (VRE) sources.
Development Engagement 3: Low carbon development in the industrial sector
Outcome: Incentive schemes for energy efficiency in the industrial sector and improved capacity in place to develop and revise the EE regulatory framework at national level and enforce compliance with EE legal framework at provincial level.

Development Engagement 1

​CAPACITY DEVELOPMENT FOR LONG-TERM ENERGY SECTOR PLANNING
Organization in charge/Beneficiary: Electricity and Renewable Energy Authority (EREA), Ministry of Industry and Trade 
Address: 23 Ngo Quyen street, Hoan Kiem district, Hanoi 
Telephone: 04. 62786184    Fax: 04. 62786185
Website: http://www.erea.gov.vn/
Target, output, output indicator and activities of Component 1:  
OutcomeCapacity enhanced in energy sector planning and policy development, integrating renewable energy, including offshore wind and energy efficiency technologies, as cost-effective measures of meeting the Vietnamese NDCs while ensuring national security of supply
Outcome indicatorSustainable pathways from developed scenarios with increasing shares of renewable energy, including offshore wind and energy efficient technologies presented in the EOR, are applied within national energy and power planning and policy development. 
BaselineYear
1. EOR issued biennially with projections for different development paths of energy sector development 
2. EREAs capacity on offshore wind is limited
TargetYear
1. The biennial EOR is used as the main vehicle to evaluate, revise and raise ambitions of future energy and climate scenarios and selected sustainable pathway thereof meeting the NDC commitments is applied in national energy sector planning and policy development
2. EREA leads implementation of necessary preconditions for offshore wind sector development
Output 1MOIT capacitated to independently prepare high-quality integrated scenario-based long-term modelling of the Vietnamese energy system presented in bi-annual EORs, to provide significant support to Vietnamese national energy system planning and policy development processes
Output indicatorEOR preparation, independently led by EREA and based on high quality data, develops NDC scenarios that are incorporated into the power planning and policy development
Baseline2020Vietnam EOR is prepared in cooperation between EREA and DEA with significant external support and is used as input to national energy plans, including PDP 8 and EMP development processes. 
Target2023Vietnam EOR is developed and published, headed by EREA with support from DEA, and used for national energy plans, including stock-taking of the progress of PDP 8 and EMP and progress toward meeting the targets of the NDCs.
Target2025EREA leads, independently, the development of further improved Vietnam EOR and uses it to support national energy plans, including the revision of PDP 8 with pathways to meet the NDC targets.
Activities- Strengthening the data foundation in Vietnamese power/energy planning, including updates and developments of technology catalogues.
- Model development within the area of power, energy, environment and economics to support the publication of the bi-annual Vietnam Energy Outlook Report.
- Development of Vietnam Energy Outlook Report 2021.
- Development of Vietnam Energy Outlook Report 2023.
- Development of Vietnam Energy Outlook Report 2025.
- Support to national power/energy planning, including stock-taking and revision of PDP8 and EMP as well as NDC pathway analysis.
- Organize training courses and study tours for EREA and other relevant institutions
Output 2Vietnamese authorities capacitated to lead and manage offshore wind (OSW) development and roll-out.
Output indicatorImplementation of OSW follows well informed developed regulatory framework, technical standards for OSW and successful design of OSW auctioning scheme
Baseline2020Roadmap for OSW completed
Target2023Pilot regulatory mechanism for OSW transparent and competitive auctioning prepared, ready for submission for approval
Target2025Well-informed offshore wind regulatory framework, technical standards and support scheme prepared 
Activities- Support EREA to draw lessons learnt from the consenting and grid connection of initial large scale OSW demonstration projects. 
- Development of a competitive, enduring and de-risked auction regime based on learnings from consenting and grid connection of initial large scale demonstration projects and international experience.
- Establishing an offshore wind team in EREA, including training in regulatory aspects and study tour to Denmark.

Development Engagement 2

​CAPACITY DEVELOPMENT FOR RENEWABLE ENERGY INTEGRATION INTO THE POWER SYSTEM
Organization in charge/Beneficiary: Electricity Regulatory Authority of Vietnam (ERAV), Ministry of Industry and Trade
Address: D10 Khuat Duy Tien street, Thanh Xuan district, Hanoi
Telephone: 024.22147474  -  Fax: 024.35543008
Website: http://www.erav.vn/
Target, output, output indicator and activities of Component 2: 
Outcome Regulatory framework and flexible options in the power system supports the efficient and secure transition towards clean energy with a rising share of electricity from variable renewable energy (VRE) sources
Outcome indicatorTransparent regulatory framework in line with international standards in place for efficient, secure and market-based integration of variable renewable energy (VRE) generation in the power system
BaselineYear 2020Incomplete framework for integration of renewable energy in place
Target Year
2025
1. Ancillary services deployment and evaluation of electricity market stakeholders for VRE integration is governed by enhanced regulatory framework. 
2. Increased VRE integration, system flexibility that rely on VRE forecasting, and enhanced system stability
Output 1Regulatory framework developed, to ensure the security and quality of power system operation and regulation and benchmarking of power companies  for increased integration of VRE 
Output indicatorUpdated grid codes and regulations of electricity sector stakeholders such as power distribution companies, transmission companies and the system and market operator
Baseline2020Grid codes partially updated, without considering new technologies (e.g. offshore wind storage etc.)
Target2023Draft regulatory framework ready, which consider new technologies and cover electricity sector stakeholders such as power distribution companies, transmission companies and other power service companies
Target2025Enforcement and implementation of relevant regulation, including grid codes, for increased VRE integration into the grid
Activities- Development and updating of grid codes and other regulatory documents including the consideration of updating new technologies and involvement of relevant stakeholders for a more reliable power system and easier access to the grid for VRE and enhance interconnection to neighbouring countries.
- Development and updating of regulations of power distribution companies, transmission companies and system and market operator with the purpose of increasing VRE integration, efficiency (KPI) and involvement of relevant stakeholders.
- Enhance the responsibility of Regulator to monitor and supervisor the quality of power supply and KPI of Utilities (Distribution, Transmission companies, Operator…).
- Review of existing assessment framework for capacity adequacy and security of electricity supply; improvement of framework for monitoring and reporting of security of electricity supply by ERAV in the context of increased RE penetration.
- Capacity building to enhance the capability for Regulator and relevant stakeholders to enforce and implement the updated regulations.
Output 2Solutions focusing on the demand side and dispatchable power generation to ensure increased integration of VRE
Output indicatorMechanisms to ensure optimal integration of VRE through flexibility of dispatchable power plants and demand flexibility
Baseline2020Limited incentives for demand flexibility and not applied
Target2023Solutions for flexibility in power generation and demand-response to allow for optimal integration of VRE
Target2025Optimization of VRE integration regulated through enforcement of updated mechanisms.
Activities- Developing and updating of demand response mechanism for increased VRE integration.
- Development of pilot project for: 1-2 dispatchable power plants to increase flexibility; one model to incorporate demand response programs and smart grid technology and rooftop solar system, etc.
- Development of solutions for dispatchable power plants to operate more flexible for increased VRE integration.
- Implement some campaign strategies, marketing programs to enhance the awareness of Demand side programs for customers, utilities, …
- Capacity building to enhance the capability for Regulator and relevant stakeholder to enforce and implement the solutions of Demand side and dispatchable generation to ensure increased integration of VRE.
Output 3Vietnamese power system operation capacity enhanced to ensure optimal integration of VRE into the power system
Output indicatorCapacity to optimize integration of VRE into the grid
Baseline2020Currently capacity for VRE integration applied in system operation is limited
Target2023Application of tools, e.g. forecasting and monitoring tools, for optimal VRE integration designed, ready for testing in system operation
Target2025Developed tools for VRE integration are applied in system operation
Activities
- Increase and improve application of forecasting of RE in power system operation.
- Improvement of planning and dispatching in a market-based system for increased VRE integration.
- Improvement of solutions and the relevant stakeholder’s capacity in real time monitoring of power system and market.
- Enhance power system operator’s perspective and knowledge on cross-border power trading.
- Centralized cluster voltage control for RE power plant cluster and control coordination among plant clusters.

Development Engagement 3

​LOW CARBON DEVELOPMENT IN THE INDUSTRIAL SECTOR
Organization in charge/Beneficiary: Department of Energy Efficiency and Sustainable Development, Ministry of Industry and Trade
Address: 54 Hai Ba Trung street, Hoan Kiem district, Hanoi
Telephone: 024 2220 2358  
Website: https://tietkiemnangluong.com.vn/
Target, output, output indicator and activities of Component 3: 
OutcomeIncentive schemes for energy efficiency in the industrial sector and improved capacity in place to develop and revise the EE regulatory framework at national level and enforce compliance with EE legal framework at provincial level
Outcome indicatorEE regulatory framework under effective implementation at national and provincial level and incentive schemes in place for industries 
BaselineYear
2020
1. Compliance with EE legal framework for industrial sector is limited at provincial level 
2. EE incentive schemes for industry are absent
TargetYear
2025
1. Compliance with EE legal framework for industrial sector improved at provincial level 
2. EE incentive scheme ready for approval by the competent authorities
Output 1EE legal framework developed and revised, and compliance with EE legal framework enforced at provincial level. 
Output indicator
1. Developed or revised energy consumption benchmarking regulations in industrial sector 
2. % of enterprises complying with energy consumption benchmarking regulations
Baseline2020
1. A number of energy consumption benchmarking regulations issued from 2014 to 2016 need continued updating
2. Compliance is poor at provincial level
Annual target2023
1. At least one energy consumption benchmarking regulation developed or revised
2. Compliance is 50% of enterprises in target provinces
Annual target2025
1. At least one additional energy consumption benchmarking regulation developed or revised
2. Compliance is 80% of enterprises in target provinces and minimum 50% on average from selected other provinces
Activities- Develop and revise EE benchmarking circulars.
- Support for implementation of administrative procedures and guidelines for compliance check of EE regulations at provincial level.
- Dissemination and propaganda of EE regulations, lessons learnt and successful cases of enforcement and compliance of EE regulations.
- Organize study tours for experience sharing on development and implementation of EE legal framework.
Output 2EE incentive scheme for industry sector designed for selected enterprises in provinces, and the roadmap and action plan of finalized EE incentive scheme ready for approval
Output indicator
1. EE incentive scheme for industry sector designed and tested
2. Final EE incentive scheme, roadmap and action plan ready for approval by the competent authorities 
Baseline2020
1. No EE incentive schemes available
2. No incentive schemes tested at provincial level
Annual target2023
1. EE incentive scheme designed 
2. EE incentive scheme tested in at least two selected provinces and in at least four specific enterprises
Annual target2025
1. EE incentive scheme design finalized
2. Roadmap and action plan for nation-wide roll-out of incentive scheme ready for approval by competent authorities 
Activities- Design and finalize EE incentive scheme for industry sector.
- Develop the roadmap and action plan for nation wide roll out, ready for approval by the competent authorities.
- Develop and implement propaganda activities of EE incentive schemes.
- Organize a study tour to Denmark for experience sharing on development and implementation of EE incentive schemes.
Output 3EE technology catalogues for industry and technical guidelines for selected industrial sectors developed, disseminated and application status assessed
Output indicator
1. EE technology catalogue for industry and technical guidelines for selected industrial sectors developed and disseminated. 
2. Assessment of application status of technologies in the developed EE technology catalogue in selected industrial sector
Baseline2020No EE technology catalogue and technical guidelines issueds
Annual target2023
1. One EE technology catalogue developed for industry and two technical guidelines for selected industrial sectors developed and disseminated
2. Assessment of application status of technologies in the developed EE technology catalogue in two selected industrial sectors
Annual target2025
1. Two additional technical guidelines for selected industrial sectors developed and disseminated
2. Assessment of application status of technologies in the developed EE technology catalogue in two additional selected industrial sectors
Activities- Develop and disseminate one EE technology catalogue for industry.
- Develop and disseminate 4 technical guidelines for selected industrial sectors.
- Assessment of application of advanced EE technologies in 4 selected industrial sectors.
- Organize a study tour to learn about experience on developing EE technology catalogue and technical guidelines for industrial sectors and EE technology application.
- Propaganda of successful cases of applying EE technologies; Establishment and operation of a website for propaganda of project activities and results.
Output 4
Bankable energy efficiency investment projects in energy intensive industries identified and prepared through energy audits, preparation of project pre-feasibility, feasibility studies and assistance with financing outreach, combined with capacity development of DEUs, energy auditors and other stakeholders.
Output indicator 4
Pipeline of energy efficiency investment projects developed, documented and presented to enterprise management and financiers.
Base lineYear2022Limited TA for identification and development of bankable energy efficiency investment projects available to large energy intensive industries. 
TargetYear2023• 10 demonstration energy audits of international quality, identifying significant energy savings potentials, carried out by joint international and national auditor teams and used as train-the-trainer program for national lead auditors. 
• 40 energy audits of high quality, identifying significant energy savings potentials, carried out by national auditor teams. 
• 10 pre-feasibility studies and 2 feasibility studies prepared for projects identified during audits.
• 2 enterprises received assistance for financing outreach.
• 2 enterprises received capacity development on energy efficiency and climate changes issues 
• 2 commercial banks received capacity development on energy efficiency financing
TargetYear2024• 50 energy audits of high quality, identifying significant energy savings potentials, carried out by national auditor teams. 
• 10 pre-feasibility studies and 5 feasibility studies prepared for projects identified during audits.
• 5 enterprises received assistance for financing outreach.
• 5 enterprises received capacity development on energy efficiency and climate changes issues 
• 2 commercial banks received capacity development on energy efficiency financing
Target
Year
2025Final results:
• 100 energy audits of high quality completed, identifying significant energy savings potentials 
• 25 pre-feasibility studies and 10 feasibility studies prepared for projects identified during audits, resulting in at least 5 projects being implemented
• 10 enterprises received assistance for financing outreach.
• 10 enterprises received capacity development on energy efficiency and climate changes issues 
• 5 commercial banks received capacity development on energy efficiency financing
• At least 2 cooperation provinces received capacity building on development of investment projects
• 40 certified energy auditors received on-the-job training in international quality energy auditing


Output 5
Centre of Excellence (CoE) for Energy Efficiency in Energy Intensive Industries established, anchoring and disseminating the results, knowledge and tools developed under outputs 1-4 to a broader group of energy intensive industrial enterprises and sector stakeholders in the provinces of Vietnam.
Output indicator 5
Established CoE ensures that all data, analysis and experience generated under outputs 1-4 are made available in a suitable form to DOITs, DEUs and sector stakeholders in the provinces of Vietnam.
BaselineYear2022No platform like Centre of Excellence exists for capacity building, advisory to EE solution, technology, energy audit with international standard for DEU, stop shop for dissemination of results, knowledge and tools concerning energy efficiency in energy intensive industrial enterprises
TargetYear2023• Secretariat and website for CoE established.
• Guidance and advise available through CoE for stakeholders in partner provinces.
• Strategy and systems for results and data collection, storage and presentation across outputs 1-4 established.
• Material training development for capacity building to EE audit, solutions and climate change issues for DEUs
TargetYear2024• Guidance, advise, material training for capacity building to EE audit, solutions and climate change available through CoE for stakeholders.
• Data, analyses and experiences generated across Outputs 1-4 are collected and made available in suitable forms.
• Capacity building for enterprises, DOIT, EE centers and stakeholders about EE, climate change organized
• Secretariat actively engaged in existing Working Groups and platforms on energy efficiency, providing DEUs and DOITs with a direct link to materials of relevance to energy intensive industries.
TargetYear2025• Guidance and advise available through CoE for stakeholders.
• Capacity building for enterprises, DOIT, EE centers and stakeholders about EE, climate change organized
• All materials, knowledge and tools developed under outputs 1-4 (and from other international cooperation projects) collected by CoE and made available in a suitable form to DOITs, DEUs and sector stakeholders in the provinces of Vietnam.
• Strategy on hosting of and funding for CoE after completion of current program has been developed.

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Chương trình Hợp tác Đối tác Năng lượng Việt Nam – Đan Mạch giai đoạn 2020-2025

Văn phòng BQL dự án Chương trình Hợp tác Đối tác Năng lượng Việt Nam – Đan Mạch
Địa chỉ: Phòng 318, Tầng 3, Nhà B, 54 Hai Bà Trưng, Quận Hoàn Kiếm, Hà Nội
Điện thoại: 024. 2220 5528

© DEPP 3 | 2021