Quyết định 2447/QD-BCN

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);

At the request of Director of the Electricity Regulation Authority,

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.

b) During 2007-2010, completing elaboration and promulgation of a framework of legal documents which is synchronous with Laws and documents under laws relating to the power demand side management (DSM) 

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

a) Contents:

- 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.

- During 2011-2015: expanding the pilot programs up 05 programs in 5 big cities (Ha Noi, Ho Chi Minh  Da Nang, Hai Phong and Can Tho) with target of obtaining 600 customers participating in the program and decreasing 20MW capacity on peak hour.

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.

3. Program for application of special price table to customers accepted to be interrupted and cut out (I&C):

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:

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.

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:

- To complete the highest legal framework for power demand side management;

- 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.

III. Duration for implementation of the program:

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.  

3. To strengthen international and regional cooperation in training, improving capability for contingent of officers operating in DSM field through forms of direct investment, science workshops, sending officers to foreign countries for training, sending delegations to foreign countries for survey.

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.