Government aims to save US$8b in energy bills
07-AUG-2008 Intellasia | Bernama
Aug 7, 2008 - 7:00:00 AM
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Maintaining an annual growth rate of 10-14% in the energy sector sucks up US$8billion from the State budget -money that could be saved if energy were used more efficiently, Vietnam news Agency (VNA) quoted a senior HCM City official as saying.
Vietnam's potential for power savings is between 10-40%, which could translate into financial savings if energy consumption were economised more effectively, said Huynh Kim Tuoc, director of HCM City Energy Conservation Centre.
While other countries consider energy saving to be the biggest power source, Vietnam has strived to save 3-5% of energy consumption during the 2007-2012 five-year plan, he said.
To make US$1,000, Vietnam needs 500 kilogram of oil TOE (tonne on energy). HCM City requires 384 kilogram of oil TOE, while Japan only uses up 100 kilogram.
The country also needs to cut the elasticity co-efficient, a ratio of energy growth to the growth in gross domestic products, which currently ranges from 1.46-1.86.
A drop of 0.1 in the co-efficient would save the nation US$500 million, Tuoc said, adding that Thailand attempts to reduce the index from 1.3 to 1.1 from 2005 to 2010.
Worldwide, the index hovers around 0.9-1.
Tuoc stressed the importance of saving energy for businesses since energy costs accounted for 30-50%, sometimes even 70%, of production costs and carry the risk of closures to the front door of many firms in HCM City.
A recent survey by the Energy Conservation Centre of 8,000 households, businesses and agencies in HCM City and neighbouring Can Tho and Binh Duong provinces shows a remarkable change in energy-saving awareness.
"Previously, the centre had to implore or even pay businesses to provide consulting services. The situation has reversed now, with around 20 companies waiting for the centre's assistance in energy saving solutions," Tuoc said.
The centre now offers energy-related consulting services to 30 provinces and cities nationwide. It has consulted 1,800 out of HCM City's 2,600 enterprises.
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