According to a local publication, the loan will be distributed to industrial consumers for deployment of energy efficiency technologies and appliances through financial institutions registered to participate in the government’s energy conservation programme.
The loan is part of efforts by the World Bank to help Vietnam reduce its carbon footprint by offsetting the construction of new fossil-fuelled power generation resources.
In addition, the loan will help industrial consumers to optimise their operations by reducing their energy and operational costs.
For utility companies, the energy efficiency funding is expected to help them improve the stability of their grid networks.
In total, the Vietnamese government will spend $158 million in deploying its energy conservation programme for industrial consumers.
Meanwhile, the government of India secured a $200 million loan from the Asian Development Bank (ADB) to accelerate deployment of its energy efficiency programmes.
The Indian government plans to use the $200 million ADB loan through its energy conservation subsidiary Energy Efficiency Services Limited (EESL) to save up to 3,800GWh per annum.
EESL will direct the $200 million towards the government’s energy conservation programme ‘National Mission for Enhanced Energy Efficiency (NMEEE)’.
Raj Kumar, secretary of the Department of Economic Affairs in the Indian Ministry of Finance, said: “Several initiatives to enhance energy efficiency in energy intensive businesses have already been launched by the government under NMEEE with an aim to unlock the market for energy efficiency projects that is estimated at over $1 billion.”
In total, EESL expects to spend up to $400 million including the $200 million from the ADB to install 225,000 water pumps, 1.5 million LED street lamps and 42 million LED household lamps, ceiling fans and LED tube lights.
The NMEE programme will provide loans for installation of water pumps and LED streetlights by utility firms, cities and municipalities in Andhra Pradesh, Goa, Karnataka, Maharasthra, Rajasthan, Telangana and Uttar Pradesh regions.
The programme will be used to equip institutions and residential consumers with energy efficient fans and LED bulbs.
B. Sondjaja, the deputy director of the ADB in India, added: “The installation of energy-efficient equipment will give significant energy savings, expected to be 30% from agricultural water pumps, about 80% from households and institutions LED lighting, and about 50% from LED streetlights.” [NYSERDA expands industrial energy efficiency].
The ADB loan will have a 20-year term, including a grace period of 5 years, according to a press statement issued by the ADB.
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