Vietnam Energy Efficiency Standards and Labelling Program: Australian Government Support Project MARKET SURVEY September 2012 Prepared by: Introduction From January 2013 it will be mandatory for all lighting and most electrical appliances on sale in Vietnam to carry a label showing the energy efficiency of the product. This survey was conducted to provide an understanding of electricity consumption by lighting and appliances and to explore the attitudes and behaviour of consumers. The survey was conducted in August 2012 and involved a face-to-face survey of a representative sample of Vietnamese households and commercial consumers (offices, shops, restaurants, 3, 4 and 5 star hotels, hospitals and schools). In total 1,380 homes and 450 non-domestic premises were surveyed. The survey captured data on electricity use, appliance ownership, how appliances are used, purchase behaviour and initial attitudes to the label. The results from the survey on electricity consumption and appliance ownership are consistent with other information from Vietnam Electricity and the General Statistics Office of Vietnam. Electricity consumption in Vietnam Vietnam’s electricity consumption is estimated to be 105 TWh in 2012; 34 TWh will be used by households and 9.5 TWh in the non-domestic sectors covered by this report. The current peak demand for electricity is around 20 GW. The chart on the right shows the Vietnam Institute of Energy’s forecast for energy consumption to 2030. Electricity consumption is forecast to increase six-fold and peak demand is expected to increase to 110 GW. Over the same period the Institute forecasts that generating capacity will increase to 700 GW. About 22.5 million households in Vietnam are connected to the power grid; 15.5 million of these are in rural areas and consume an average of 1,200 kWh per year. The 7 million homes in urban areas consume an average of 2,700 kWh per year. On average, households connected to the grid spend 4.2% of their income on electricity. Lighting and appliance ownership All the households covered by the survey had mains electricity, lighting and at least one electric fan. The proportion of homes that we investigated with at least one of the other appliances is shown in the chart (right). Ownership of all appliances is higher in urban than rural areas and among wealthier households. There are around 130 million lamps installed in homes in Vietnam; 60 million of these are compact fluorescent lamps (CFLs) and 54 million are fluorescent tubes. Most of the rest are incandescent bulbs (16 million). Householders tend to use the fluorescent tubes most. The chart on the right shows the relationship between household income and ownership of selected appliances. It can be seen that as income increases ownership of all appliances increases. However, as their incomes rise, households seem to purchase refrigerators and gas hobs sooner and air conditioners and microwave ovens later than other appliances. Ownership of lighting, air conditioning and fans was explored in all the nondomestic sectors. Almost all buildings had at least one fan. In hotels the most common type of lighting is CFLs, in the other sectors fluorescent tubes are the most common. Ownership of air conditioners is shown in the chart on the left. Household appliance use The chart on the right shows the average hours each of the appliances covered by the survey was reported to be used. It should be noted that homes have several lamps and many have more than one of the other types of appliance. Householders were asked about the time of day that they typically used appliances during different seasons. The chart on the left shows the time when appliances are in use during a typical day in the summer/dry season, and their electricity consumption. Electricity consumption by appliance In 2012 households are estimated to have consumed 34 TWh of electricity. Most of this consumption is represented by five end uses: lighting (fluorescent tubes are used most), air conditioning, rice cookers, refrigeration and televisions. The estimated1 breakdown is shown in the chart on the right. In non-domestic sectors, lighting and air conditioning are estimated1 each to account for about 3 TWh/year; together this 6 TWh/year represents nearly two thirds of the total electricity consumed by the nondomestic sector (9.5 TWh/year). Peak loads Electricity demand in Vietnam reaches a peak at around 10am on weekdays in the summer or dry season. Lighting and appliance electricity demand in homes and non-domestic premises is estimated1 to account for about 20% of that peak (4 GW). The chart on the right shows the breakdown by sector and end use. Future plans Households were asked about their plans to purchase electrical appliances in the next year. Consumers tend to purchase lamps and fans when a replacement is needed but the purchase other appliances are more planned. The chart shows the estimated number of households in Vietnam that consider it “very likely” that they would buy each of the appliances under investigation in the next year. Most anticipated TV purchases were intended to replace older CRT TVs with flat screen models. Otherwise, new appliances would be the first owned by that household. Householders and non-domestic consumers are most likely to buy lamps and fans at a local independent electrical retailer; mostly because of convenience. However, they would purchase other appliances at a chain 1 The electricity consumption of typical appliances was estimated based on international data. This will be updated to reflect the Vietnamese market once data are available from the product registration system. electrical retailer as this is where they would expect to obtain the best combination of quality and price. Schools were the only exception to this; they prefer to purchase computers and printers from specialist contractors. Attitude to the energy efficiency label Considering the combined views of domestic and non-domestic respondents on the proposed label: Almost all believe that energy efficient equipment would cost them less to run and nearly all felt that having accurate information on energy consumption would help them to choose lights and appliances; Around 90% think that the proposed mandatory label is a good idea; and 75% are confident that they would be able to trust the label; the main concerns of the remaining 25% are that: o The label could be faked; o Poor quality products could still receive a high energy efficiency rating; and o The system might not be well enforced. About the survey The survey was conducted for the Australian Department for Climate Change and Energy Efficiency funded by the Australian Agency for International Development and in collaboration with the Vietnam Ministry of Industry and Trade. TITA Research carried out the data collection. The Vietnam Institute of Energy advised on the survey methodology and provided data on the electricity market in Vietnam.