CIRCULAR

Guiding the energy conservation and energy efficiency in production units

Pursuant to the Government's Degree No. 55/2003/NĐ-CP dated May 28, 2003 governing the functions, duties, powers and organisational structure of the Ministry of Industry;

Pursuant to the Government's Degree No. 102/2003/NĐ-CP dated September 3, 2003 on the energy conservation and energy efficiency;

The Ministry of Industry hereby provides guidelines for the energy conservation and energy efficiency in production units:

I. GENERAL PROVISIONS

1. Production units of every economic sector, regardless of types of enterprises, which use energy for commodity processing and production; machines and equipment repairment; mine exploitation; electricity generation; thermal energy generation and supply, shall have the responsibility in the implementation of the provisions as prescribed herein and in other relevant legal documents governing the energy conservation and energy efficiency.  

2. Terms in this Circular shall have the following meanings:

a) Energy auditing means the process of independent measuring and assessment in order to identify the amount of energy consumed by a production unit. 

b) Energy-auditing consultation organisation means an organisation which has expertise and necessary vehicles to carry out energy-auditing consultation; detailed requirements for operation in energy-auditing consultation are stipulated in Paragraph 3, Section IV of this Circular.   

c) Key energy consuming units mean production units operating in the areas defined in Paragraph 1, Section I of this Circular and consuming an amount of energy that meets at least one of the following criteria:  

- The annual amount of fuel and thermal energy consumption (converting to tons of oil) is equal to 1,000 TOE or higher.

- Using electricity of 500 kW capacity, or the annual amount of electricity consumption is 3,000,000 kWh or higher.    

  II. ENERGY CONSERVATION AND ENERGY EFFICIENCY IN PRODUCTION UNITS

1. Each year, production units operating in the areas defined in Paragraph 1, Section I with a smaller amount of energy consumption than that stipulated in item c, Paragraph 2, Section I of this Circular have to make reports on energy consuming situation, energy consumption per product, set up an energy-saving target, and direct them to the [provinces' or cities under the central government] Industry Service for generalisation. Reports samples are prescribed in Appendix 1 enclosed with this Circular.  
2. Managers of production units are responsible for deciding and implementing management measures, applying suitable technologies so as to regularly improve their energy consuming conditions and lower the units' energy consumption per product.

3. Managers of production units are responsible for monitoring and speeding up the report-making concerning their energy consumption, energy auditing, and for organising diffusion and education on energy-saving activities at the units, timely rewarding groups and individuals with good performance in energy-saving activities.

4. Expenditures for energy-saving activities at production units are counted as part of the units' spending.

III. ENERGY CONSERVATION AND ENERGY EFFICIENCY IN KEY ENERGY CONSUMING UNITS 

 1. Each year, based on their production and business plans, key energy consuming units have to set up plans for the energy conservation and energy efficiency, propose an energy consuming norm for each product item; set up an annual target for energy-saving to direct to the Industry Service, higher administrative bodies and the Ministry of Industry no later than the second day of February of the planning year.   

2. Each year, no later than the 25^th of December, key energy consuming units have to report to the Ministry of Industry, the specialist Ministry and the Industry Service their annual energy consuming situation; reports samples are prescribed in Appendix 2 enclosed with this Circular.

In case the amount of energy consumed in the reported year and the targeted amount for the following year are smaller than those stipulated in item c, Paragraph 2, Section I of this Circular, energy consuming units request the Ministry of Industry to withdraw their names from the list of key energy consuming units. Within 15 days, the Ministry of Industry will consider the result of energy auditing of the units and make a written announcement on whether or not to accept the units' request.  

3. Key energy consuming units have to assign energy-managing specialists to assist the managers. Energy-managing specialists are required to have engineering degree or higher, majored in energy.

4. Responsibility of energy-managing specialists:

a) Setting up the units' annual plans for energy-saving and submitting them for the managers' approval.

b) Organising the implementation of measures for the energy conservation and energy efficiency under the objectives and plans approved by the managers.

c) Organising the assessment and supervision of the implementation of measures for the energy conservation and energy efficiency, proposing measures to tackle difficulties emerged in the implementation process. 

d) Establishing records to note and follow monthly and annual demands for energy consumption of each equipment and of the whole production line, and the situation of new installation, upgrading and repairing of energy-consuming equipment in the unit.

đ) Assisting the managers to organise diffusion and consider reward and punishment in the activity regarding the energy conservation and energy efficiency of the units.

e) Based on the cycle of their energy-consuming equipment, the units choose a competent energy-auditing organisation to conduct energy auditing.

g) Analysing the result of energy auditing, proposing to the managers appropriate solutions to raise the efficiency of energy consumption. 

h) Assisting the managers to carry out the tasks stipulated in Paragraph 1, Section III; making reports as prescribed in Paragraph 2, Section III of this Circular to direct to the Ministry of Industry, higher administrative bodies and the Industry Service. 

i) Setting up and submitting plans for the energy conservation and energy efficiency for the managers' approval on the request of the Ministry of Industry.

k) Attending education and training programs on the request of the Ministry of Industry.  

5. Budget to realize initiatives on management, improvement of energy-using techniques, consolidation of energy monitoring and measuring systems, energy auditing, propaganda, mid-career training and training on the use of energy is included in the expenditures of the key energy consuming units in accordance with provisions of the law.    

6. Managers of key energy consuming units are responsible for issuing detailed regulations on the responsibility of groups and individuals in the energy conservation and energy efficiency, regularly supervising and speeding up, rewarding and timely handling violations so as to well effectuate energy consuming plans of the units.    

IV. ENERGY AUDITING
1. Production units as defined in Paragraph 1, Section I are encouraged to arrange energy auditing every 3 to 5 years. Based on the energy auditing result, the units decide appropriate solutions to improve their energy consuming performance and submit them to the relevant authorities for their approval of new improvement or investment plans. 

2. Production units are required to forward energy-auditing reports to the Industry Service and higher administrative bodies for the purpose of administration.

Key energy consuming units direct energy-auditing reports to the Industry Service, higher administrative bodies and the Ministry of Industry.

3. Organisations meeting the following criteria are allowed to conduct energy-auditing in energy consuming units:

a) Enjoying legal entity under the law, namely:

- State enterprises operating under the Law on State Enterprises;

- Enterprises established under the Law on Enterprises;

- Foreign invested enterprises established and operating under the Law on Foreign Investment in Vietnam;

- Other organisations established under the law.

b) Registering business operations in the energy sector.

c) Having a corp of specialists experienced in the energy-saving area; chief specialists on technology and finance analysis are required to have at least five year experience.

d) Affording equipment, technical means, calculating and analysing tools for energy-auditing.  

4. Energy-auditing involves the following main tasks:

a) Surveying, measuring, collecting data of energy consuming units.

b) Analysing, calculating and assessing the efficiency of energy consumption.

c) Assessing the future energy-saving ability.

d) Proposing energy-saving solutions.

đ) Setting up a targeted amount of energy consumed for one product item.

e) Analysing the efficiency of investment for energy-saving items and proposing supporting solutions. 

5. The Department of Science and Technology is responsible for coordinating with relevant bodies to monitor energy-auditing consultation activity; dealing with any violations within its authority or request the responsible authorities to handle the violations under the law. 

V. IMPLEMENTATION

1. The Department of Science and Technology is assigned to provide guidelines, monitor and press the implementation of this Circular, as follows:

a) Arranging the supervision and inspection of the energy consuming situation in key energy consuming units;

b) At the end of the first quarter each year, announcing the energy consuming situation in the past year of key energy consuming units, and announcing the adjusted list of key energy consuming units based on the analysis of annual reports and the results of inspection and auditing of the energy consuming situation in production units;   

c) Providing guidelines for key energy consuming units to set up and submit plans for the energy conservation and energy efficiency whereas the units do not exercise feasible measures to use energy economically and efficiently as prescribed in Article 4 of the Government's Decree No 102/2003/NĐ-CP dated September 3, 2003. Pressing and reminding the units to seriously implement the approved plans for the energy conservation and energy efficiency. 

d) Organising training programs on the energy conservation and energy efficiency for cadres and staff of production units;

đ) Assigning an appropriate budget to science development, technology and environment research to support production units in doing science research and developing technology aimed at using energy economically and efficiently, and in applying common techniques for energy-saving whose efficiency has been clearly proved in practice. 

2. The People's Committees of provinces and cities under the central government are responsible for diffusing and thoroughly grasping this Circular, and organising the implementation of the Circular in their areas. 

The Industry Service assists the People's Committees of provinces and cities under the central government in administering the energy conservation and energy efficiency in their areas. Detailed tasks are as follows:

a) Pressing and monitoring the energy conservation and energy efficiency in local production units, updating the data of the past year, proposing solutions to strengthen the energy conservation and energy efficiency in their areas, and reporting to the Ministry of Industry before February 15 each year.

b) Arranging the assessment of and contribution to investment programs and projects for the purpose of using energy economically and efficiently proposed by local production units;

c) Monitoring and inspecting the implementation of this Circular within their local administered scope; requesting the Ministry of Industry to examine, adjust and supplement the Circular's contents where necessary;

d) Leading or coordinating with relevant bodies in the energy-saving activities in order to:

 - Provide information, diffuse the activities regarding the energy conservation and energy efficiency in their areas;

 - Encourage and timely reward groups and individuals who well perform the energy conservation and energy efficiency.

d) Taking other responsibilities relating to the energy conservation and energy efficiency when authorized by the Ministry of Industry.

3. This Circular shall come into effect 15 days after the date of its proclamation in the Official Gazette.

In the implementation process, localities and production units are kindly requested to inform the Ministry of Industry any difficulties so as to make necessary changes and supplementation for the Circular.

MINISTER OF INDUSTRY

             Hoàng Trung Hải

  Appendix 1     SAMPLES OF REGULAR REPORTS FOR

ENERGY CONSUMING UNITS

1. General introduction

2. Products

  3. Fuels

a) Fuel particularity

b) Fuel consumption

4. Electricity consumption

a) Purchased electricity:

b) Self-generating electricity

-         Specifications of spare generators

-         Operating hours per year:

-         Consumed fuel:  

-         Generating output (kWh):

c) Electrical charge diagrams:   Daily/monthly/annual electrical charge diagrams of key units

5. Steam consumption

6. List and characteristics of key electricity/thermal energy consuming households in the units

* Special households shall not be discharged in peak hours/ shall possibly be discharged in a short period (less than 1 hour)

7. Other samples for the purpose of statistics and management in production units

a) Steam stove

b) Furnaces

c) Steam turbines

d) Air compressors

* The following should be stated clearly:

-         The minimum pressure of the compressing system (Bar)?

-         Does the compressing system have a cycle?

-         Is the automatic-controlling system available?

(If yes, describe the operating system)

đ) Ventilators

e) Air-conditioning systems

-         Operating hours:

-         Off-period hours:

-         Start/stop method: Manually/Automatic

-         Type of air-conditioning system?

8. Recommendations and proposals concerning the efficiency of energy consumption

 Appendix  2

SAMPLES OF REGULAR REPORTS FOR 

KEY ENERGY CONSUMING UNITS

1. General introduction

2. Products

  3. Fuels

a) Fuel particularity

b) Fuel consumption

4. Electricity consumption

a) Purchased electricity:

b) Self-generating electricity

-         Specifications of spare generators

-         Operating hours per year:

-         Consumed fuel:  

-         Generating output (kWh):

c) Electrical charge diagrams: Setting up daily/monthly/annual electrical charge diagrams (for the combined electrical charge diagrams of key units)

5. Steam consumption

6. List and characteristics of key electricity/thermal energy consuming households in the units

* Special households shall not be discharged in rushing hours and shall possibly be discharged in a short period (less than 1 hour)

7. Recommendations and proposals concerning the efficiency of energy consumption

8. Other issues

(Environment, exhaust fumes, hard waste…)