Danish Energy Partnership Programme
The Danish Energy Partnership Programme (DEPP) is part of the Danish commitment to fulfil the Paris Agreement by assisting a number of emerging economies in their low- carbon transition. The cooperation is aiming to promote the use and awareness of the Danish energy experiences as an inspiration for green transition through a unique approach in a government-to-government cooperation.
The Danish-Vietnamese co-operation was established in 2013. Today, it focuses on supporting Viet Nam in fulfilling the target of net zero CO2-emissions in 2050, the Paris Agreement and the UN's Sustainable Development Goals on, among other things, energy and climate. The Danish Energy Agency (DEA) and the Vietnamese Ministry of Industry and Trade (MOIT) are the key actors of this partnership. At present, the DEPP is in the third phase (DEPP III) which runs from 2020 to 2025 and focuses on the following areas:
Fact sheet about the programme
1) Long-term energy planning and offshore wind
Long-term scenario analyses are supporting Viet Nam to identify a feasible way to reach the target of net-zero CO2-emissions in 2050. The latest analysis shows that a green transition of Viet Nam’s entire energy supply, including transportation and the industry, would only be ten percent more expensive than the baseline scenario (Viet Nam Energy Outlook Report 2021). Included in the report is a range of recommendations for future energy planning such as phasing out of coal-fired power plants, increased focus on energy efficiency and continued deployment of renewable energy.
The Viet Nam Energy Outlook Reports provide critical input to the Vietnamese authorities’ long-term energy plans and are published bi-annually. The Energy Outlook Reports builds on technology catalogues compiled in the Danish energy model and through broad cooperation with authorities, international institutions and NGOs. Viet Nam Energy Outlook Report 2021, prepared by the Danish Energy Agency and the Vietnamese energy authorities, showed how Viet Nam can reach net zero carbon emissions by 2050 and that reaching this goal is only 10 percent more expensive than the baseline scenario. Besides long-term energy planning, the cooperation also supports Viet Nam in creating regulatory framework conditions for the development of offshore wind. With a coastline of 3,260 km and strong wind resources, Viet Nam holds great potential for offshore wind. A cooperation between The Danish Energy Agency and The World Bank in 2020 illustrated how Viet Nam, with the right regulatory framework, can achieve 10 GW of offshore wind already by 2030. The total technical potential for offshore wind in Viet Nam estimated by the Danish Energy Agency is in the order of 160 GW. For comparison, Denmark currently has a little more than 2.3 GW offshore wind in operation and is preparing to tender for an additional 9-14 GW in 2023.
Vietnam Energy Outlook Report 2021 (in English)
Vietnam Energy Outlook Report 2021 (in Vietnamese)
Vietnam Technology Catalogue for power generation and storage 2019 (in English)
Vietnam Technology Catalogue for power generation and storage 2019 (in Vietnamese)
Input to Roadmap for Offshore Wind Development in Vietnam
Report on Density and Definition 2021 (in English)
2) Integration of renewable energy and increased flexibility in the electricity system
The second component of DEPP focuses on supporting the Vietnamese Electricity Regulatory Authority (ERAV) and the National Load Dispatch Center (NLDC) in implementing the 2013 Prime Ministerial decision on a power market reform.
Integration of variable renewable energy from wind and solar power requires deep insight into technical, regulatory, and economic conditions in the energy sector. For this reason, the Danish TSO, Energinet, is part of the energy cooperation, acting as an advisor to the Vietnamese authority responsible for regulation and operation of the Vietnamese electricity system. Denmark’s 45 years of experience with flexibility and integration of renewable energy can be helpful to Viet Nam’s increase of renewable energy without compromising the security of supply.
3) Energy efficiency in the industrial sector
Viet Nam has a comprehensive and ambitious legislation to promote energy efficiency in its industrial sector. Nevertheless, great potential for energy and cost-efficient solutions remain. Viet Nam has the potential to improve energy efficiency by at least 8 per cent annually if the current legislation is enforced. Now, with new methods, tools and incentives, and based on Danish experience, this potential can easier be fulfilled. These energy efficiency incentives and tools could provide annual CO2-emission reductions of 3 million tons, which equals 10 per cent of Denmark’s annual CO2 emissions from energy consumption (2020).
The Vietnamese Ministry for Industry and Trade, two partnership provinces and The Danish Energy Agency have developed procedures, guidelines and tools that support the implementation and enforcement of the existing regulation in all of Viet Nam’s 63 provinces. Further, the DEPP will assist Viet Nam in an effort to undertake energy audits in up to 100 of the most energy intensive industrial manufacturers as well as the establishment a ‘Centre of Excellence’ to advise authorities, provinces, energy companies, the industrial sector, sector organisations, international donors, banks etc. on implementation of energy efficiency projects in the industrial sector.
This will improve the opportunities for mapping the effect of the regulation in all sectors, and harvest the potential for energy efficiency in energy-intensive industries. Furthermore, this will give rise to other positive societal benefits such as less air pollution, improved security of supply, and reduced requirement for import of fuels.
Guideline to Energy Efficiency provincial programs in Vietnam - EEAP
Vietnamese Industrial Potential for Energy and Emission Reductions
Film - Low carbon development in the industrial sector(on Youtube)