cimigo on vietnam residential energy use 2013

Vietnam Residential Energy Use Energy use and associated CO2 emissions in residential households in Vietnam

Sustainable Futures Asia Matt Parkes [email protected] www.sustainablefutures.asia

Cimigo Richard Burrage [email protected] www.cimigo.com

March 2013

About the authors 3

Why does residential energy use matter? 6

How did we understand energy use and CO2 emissions in Vietnamese homes? 11

How does residential energy use vary? 17

What impact do building materials have today? 30

Which energy conservation actions and attitudes prevail? 34

So what? 39

About Sustainable Futures Asia 44

About Cimigo 48

Contents

2

About the authors

3

Matt is the founder of Sustainable Futures Asia. He is a UK qualified Architect with an MSc in Climate Change and Sustainable Development.

Matt is involved with the UK Urban Development

Working Group, working with the UKTI and British Council in promoting business and educational links between the UK and Vietnam. In March 2010 he was responsible for producing the British Council / UKTI’s ‘Sustainable Design & Architecture Conference’ that was held in Ho Chi Minh City.

He is now leading a PhD research project with The Institute of Energy and Sustainable Development at De Montfort University, UK, looking at developing new models of low cost, energy self-sufficient, sustainable housing for south east Asian countries, focusing on Vietnam.

Matt moved to Vietnam in 2004, and prior to that has lived and worked in the UK and Hong Kong.

4

Matt Parkes, Sustainable Futures Asia

Richard Burrage has twenty one years of experience in market research and strategic consulting.

Richard has worked across Asia Pacific consulting across a range of industries and business issues.

Richard has spent the last sixteen years in Vietnam assisting in the development and building of numerous brands to achieve leadership positions.

Richard is a UK national and resides in HCMC with his Vietnamese wife and their children.

Richard founded Cimigo in 2003 and today has offices across eight countries in Asia.

5

Richard Burrage, Cimigo

Why does residential energy use matter?

6

Vietnam population and CO2 emission yearly growth

(Population data - ADB, 2009; mt/CO2/capita – UNdata, 2009)

Increased energy demand – 800 Twh in 2030

0

100

200

300

400

500

600

700

800

1990 2000 2010 2020 2030

Ba

se D

em

an

d T

Wh

Historic and Future Energy Demand - 1990 to 2030

(Historic data – Tuyen & Michaelowa, 2004;

Future projections – Cuong, 2011)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Population (Million) Total mtCO2e (Million)

7

37% is residential. US$124 billon investment required.

Historic and Future % Fuel Contribution to Energy Generation - 1995 to 2030

(Historic data – Tuyen & Michaelowa, 2004; Future projections – Cuong, 2011)

0

10

20

30

40

50

60

70

80

1995 2000 2010 2020 2030

% C

on

trib

uti

on

Coal Gas Oil Hydro

Nuclear Diesel Renewables Imports

The estimated total investment

capital required up to 2030 =

US$123.8 Billion (MONRE, 2011)

37%

37%

20%

2% 4%

Industry Residential Other Buildings Urban Infrastructure Others

Energy use by type

(Energy Conservation Centre of HCMC: 2010)

8

Which levers can be used to adjust energy use?

• Consumer habits.

• Extent of use of passive architecture.

• Use of high efficiency energy generation and management systems.

9

Residential dwellings in Vietnam

Villas Row Houses Apartments

10

How did we understand energy use and CO2 emissions in Vietnamese homes?

11

This is a part of the Cimigo giving back programme which includes; Vietnamese Attitudes to Philanthropy, Vietnam’s NetCitizens and so much more, available at www.cimigo.com.

Cimigo conducted a nationwide online survey in March 2013.

12

Cimigo interviewed 1,394 households nationwide

19 23 17 169103110

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Extremely Boring 2 3 4 5 6 7 8 9 Extremely Interesting

Survey evaluation (N=1,394)86% positive towards the survey (scored 6-10)

Interviewing predominantly urban (87%) and ABC economic (93%) households across 59 provinces.

ABC economic households account for the top 65% of household wealth distribution.

The mean average households sharing a dwelling is 2.3.

13

Understanding dwellings and households therein

54%

36%

10%

69%

29%

2%

78%

22%

52%

28%

20%

South

North

Central

Row house

Apartment

Villa house

Own

Rent

1 household

2 - 3 households

4+ households

Reg

ion

Dw

ellin

gO

wn

or

ren

t#

of

Hh

old

s/d

wel

ling

Household energy survey - sample distribution % (n=1394)

Mean 2.3 Hholds

Understanding the building materials of the dwelling.

Note the average row house dwelling is;

Width mode 4 metres

Depth mode 20 metres

Floors mode 2

Mean Sq metres 210

The mean average apartment dwelling is 60 sq metres on a single level.

14

Exploring single household size and structure

57%

30%

13%

30%

31%

39%

32%

37%

20%

12%

43%

42%

12%

3%

1%

67%

29%

2%

1%

83%

10%

5%

1%

100 or less

101 - 250

More than 250

1 floor

2 floors

3+ floors

1 - 3 rooms

4 - 5 rooms

6 - 7 rooms

8+ rooms

Corrugated iron

Cement

Tiles

Other

Wood

Brickwork

Cement

Steel

Wood

Ceramic tiles tile

Cement

Wood

Other

Sq m

/

Hh

old

# of

flo

ors

# of

roo

ms

Roo

f mat

eria

lsW

all m

ater

ials

Flo

or

ma

teri

als

Household size and materials % (n=1394)

Mean 136 sqm

Mean 2.3 floors

Mean 4.7 rooms

As dwellings are typically shared the mean average size of one household is:

Row house is 167 sqm.

Apartment 50 sqm.

The survey drilled down to one household, their appliances and energy use.

15

Per household space and key appliances

57%

30%

13%

35%

30%

34%

88%

11%

79%

52%

28%

20%

91%

72%

51%

45%

10%

8%

100 or less

101 - 250

More than 250

1 - 3 people

4 people

5+ people

< 20 items

20 - 40 items

Ventilation open to air

No aircon

1 aircon

2 or more aircon

PC, Laptop Tablet

Washing machine

Electric water heater

Ceiling fan

Solar water heater

Electric bicycle

Sq m

/ H

ho

ld#

of p

eopl

e /

Hh

old

# o

f e

lect

rica

l a

pp

lia

nce

sA

ir-c

onPe

net

rati

on o

f ap

plia

nces

Household size and appliances % (n=1394)

Mean 136 sqm

Mean 4.2 people

16

Household durable penetration

94 9491 91 89 87 86

7267

5148

45

37

23

10 8 74

2.39

1.16

2.05

2.51

1.64

.97 .95

.74 .78.66

.78 .74

.38.23 .11 .09 .08 .04

.00

.50

1.00

1.50

2.00

2.50

3.00

0

10

20

30

40

50

60

70

80

90

100Incidence %

Mean (inc. 0)

Household durable penetration (n=1394)

How does residential energy use vary?

17

18

Electricity bill is 11% of household expenditure

4,57

7,51

2

4,1

29

,04

3

4,7

28

,29

8

4,4

47

,33

6

3,4

43

,58

9

4,8

75

,11

8

11%

10%

11%

11%

10%

11%565,758

461,777

606,142

529,284

379,511

624,562

9%

10%

10%

11%

11%

12%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Total Apartment Row house North Central South

Mean monthly VND electricity bill / household Mean other household VND expenditure / month

Electricity % of household expenditure

Monthly electricity and household expenditure VND (n=1394)

19

2.15 t-CO2 / household / annum

2.15

2.33

2.03

1.55

0.56 0.61 0.52

0.41

-

0.50

1.00

1.50

2.00

2.50

Total South North Central

t-CO2 / household / annum

t-CO2 / person in Hhold / annum

Variance in CO2 emmissions by household % (n=1,394)

20

3,722 KWH / household / annum

3,722

4,042

3,530

2,689

971 1,063 905

717

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Total South North Central

kWh/ household / annum

kWh / person in Hhold / annum

Variance in electricity use by household % (n=1,394)

21

Factors to interrogate

Total Total Roof materials Corrugated iron

Dwelling Apartment Roof materials Cement

Dwelling Row house Roof materials Tiles

Dwelling Villa house Wall materials Cement

Region North Wall materials Brickwork

Region Central Floor finish Ceramic tiles

Region South Floor finish Cement

Strata City Exposed ventilation Yes

Strata Rural Exposed ventilation No

SEC AB # of electronic appliances <20

SEC C # of electronic appliances 20-40

Ownership Rent Electric heated water Washing clothes

Ownership Own Electric heated water Washing in kitchen

Household per dwelling Only 1 Electric heated water Washing in bathroom

Household per dwelling 2 to 3 Cooking with electric Cooking with Electric

Household per dwelling 4 or more Ceiling fans Ceiling fans

People in household 3 or less Aircon No Aircon

People in household 4 Aircon 1 Aircon

People in household 5 or more Aircon 2 or more Aircon

Sq meter of each household 100 or less Electric usage Electric water heater

Sq meter of each household 101-250 Electric usage Solar water heater

Sq meter of each household More than 250 Electric usage PC, laptop or tablet

Floors 1 Floor Electric usage Electric heated water machine

Floors 2 Floors Electric usage Electric bicycle

Floors 3+ Floors Water source Tap

Number of rooms 1-3 rooms Water source Tap & Well

Number of rooms 4-5 rooms Water source Well only

Number of rooms 6-7 rooms

Number of rooms 8 or more

Less living space per person provides more energy efficiency. Electricity efficiency is greatest in dwellings that have:

Multiple households (and hence shared recourses)

Large household sizes (4 plus)

Yet demographic trends to less households/dwelling and less people per household.

Rural households and households relying on well water are more efficient.

Yet demographic trends are to urbanisation.

Natural climate sees reduced use in Central followed by the North. Usage is highest in the South.

Smaller structures are more efficient. Apartments followed by row houses with fewer rooms (and floors) use less.

Renters are more efficient than home owners.

22

Most efficient have shared dwellings and large households

Small households with three or less members are particularly inefficient users.

Air conditioning has a massive impact on energy use.

Inefficient households have larger homes (250 sqm +), 3 or more floors, many rooms and multiple air conditioners.

Cooking with electricity and electric water heaters also increase use significantly.

Solar water heaters have low penetration at 10%. However 3 in 10 households with a solar water heater also have an electric heater.

23

Least efficient have small households and air con

24

Rural dwellings, in central Vietnam with no air con fair best

-31%-25%

-28%-23%

22%

-7%

-17%

-27%

-15%

-5%

-19%

-35%-29%

-26% -19% -19% -15%

-15%

-15%

-9%

-9%

-8%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Ru

ral

We

ll o

nly

Ce

ntr

al

No

Air

con

5 o

r m

ore

4 o

r m

ore

Ce

me

nt

Re

nt

Ap

artm

en

t

4 1-3

ro

om

s

Strata Water source Region Aircon

People in household

Household per dwelling Floor finish Ownership Dwelling

People in household

Number of rooms

kWh / household / annum: index to average base=0

kWh / person in Hhold / annum: index to average base=0

Factors which lower electricity use by 8% or more of average (All dwellings n=1,394)

25

Many rooms, many air cons and small households fair worst

11%

25%

9%

5%

26%23%

12%

52%

-18%

53% 52%

8%9% 9%

11% 14% 14%

18%

25% 26%

35% 35%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Ele

ctri

c w

ate

r h

eat

er

Mo

re th

an 2

50

Sou

th

1 A

irco

n

Sola

r w

ate

r h

eat

er

3+

Flo

ors

Co

oki

ng

wit

h E

lect

ric

20

-40

3 o

r le

ss

2 o

r m

ore

Air

con

8 o

r m

ore

Electric usage

Sq meter of each

household Region Aircon Electric usage Floors

Cooking with electric

# of electronic appliances

People in household Aircon

Number of rooms



Factors which increase electricity use by 8% or more of average (All dwellings n=1,394)

26

Row houses: Renters, with large households and no air con fair well

-32%-30%

-22%

-30%

17%

-23%

-5%-9% -7% -5%

-34%

-28%

-25%

-21% -21%

-19%

-17%

-9% -9% -8%

-40%

-30%

-20%

-10%

0%

10%

20%

Ru

ral

Ce

ntr

al

We

ll o

nly

Re

nt

5 o

r m

ore

No

Air

con

4 o

r m

ore

4-5

ro

om

s

4 No

rth

Strata Region Water source Ownership

People in household Aircon

Household per dwelling

Number of rooms

People in household Region



Factors which lower electricity use by 8% or more of average (Row houses n=961)

27

Row houses: small households and air con fair badly

8%

16%20%

13%

46% 44% 46%

-13%

9%

10%

13%

21%23%

32% 33% 35%

-20%

-10%

0%

10%

20%

30%

40%

50%

Sou

th

3+

Flo

ors

Sola

r w

ate

r h

eat

er

Co

oki

ng

wit

h E

lect

ric

20

-40

8 o

r m

ore

2 o

r m

ore

Air

con

3 o

r le

ss

Region Floors Electric usage Cooking with electric

# of electronic appliances Number of rooms Aircon People in household



Factors which increase electricity use by 8% or more of average (Row houses n=961)

28

Apartments: large households, no air con fair well

32%

-18%

-4%

-17%

-16%

-11%

-30%

-20%

-10%

0%

10%

20%

30%

40%

5 o

r m

ore

No

Air

con

4 o

r m

ore

People in household Aircon Household per dwelling



Factors which lower electricity use by 8% or more of average (Apartments n=410)

29

Apartments: with air con, electric cooking and small households fair badly

7% 8% 5%

32%

19%

-22%

21%

9%18% 18%

8% 9% 10% 10%13%

14%

14%

16% 18%

27%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Sou

th

Tap

Co

rru

gate

d ir

on

6-7

ro

om

s

Ele

ctri

c w

ate

r h

eat

er

3 o

r le

ss

Was

hin

g cl

oth

es

2 to

3

Co

oki

ng

wit

h E

lect

ric

1 A

irco

n

Region Water source Roof materials

Number of rooms Electric usage

People in household

Electric heated water

Household per dwelling

Cooking with electric Aircon



Factors which increase electricity use by 8% or more of average (Apartments n=410)

What impact do building materials have today?

30

For row houses the optimal material (amongst existing use) is cement for roof, walls and flooring.

For apartments the optimal materials (amongst existing use) are cement for roof, and brick for walls.

Building materials today have limited influence

31

32

Row houses: limited influence – cement most efficient

0%

1%

-1%

2%

-2%

1%

-1%

-8%

0%

4%

-6%

5%

-2%

1%-1%

-6%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Ro

w h

ou

se

Co

rru

gate

d ir

on

Ce

me

nt

Tile

s

Ce

me

nt

Bri

ckw

ork

Ce

ram

ic ti

les

Ce

me

nt

Dwelling Roof materials Roof materials Roof materials Wall materials Wall materials Floor finish Floor finish



Building material impact (Row houses n=961)

33

Apartments: cement roof and brick walls fair well

0%

5%

-5%

1% 0%

4%

0%

10%

-3%

2%

-2%

5%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Ap

artm

en

t

Co

rru

gate

d ir

on

Ce

me

nt

Ce

me

nt

Bri

ckw

ork

Ce

ram

ic ti

les

Dwelling Roof materials Roof materials Wall materials Wall materials Floor finish



Building material impact (Apartments n=410)

Which energy conservation actions and attitudes prevail?

34

35

Growing vegetables and compost actions

47

42

48

48

66

42

42

76

33

51

41

45

68

40

35

42

45

57

34

34

76

31

43

35

39

64

0 20 40 60 80 100

Total

Apartment

Row house

North

Central

South

City

Rural

Rent

Own

Tap

Tap & Well

Well only

Grow vegetables or herbs at home

Use food and vegetable waste for composting or animal feed

Renewable actions % (n=1394) Households that are rural, in the central region and use well water are more likely to exhibit renewable behaviours in the home.

Even 1 in 3 inhabiting apartments are active.

36

Recycling waste and rain water harvesting actions

Recycling is common for 4 in 10 households.

Households that are rural and use well water are more likely to harvest rain water.

Even 1 in 5 inhabiting apartments harvest rain water.

45

47

44

49

42

43

45

46

50

44

45

45

41

22

23

21

25

27

18

18

43

20

22

18

20

32

0 20 40 60 80 100

Total

Apartment

Row house

North

Central

South

City

Rural

Rent

Own

Tap

Tap & Well

Well only

Separate recyclable waste from non-recyclable waste

Capture rain water and use it for

cooking, washing, flushing or garden watering

Recycling actions % (n=1394)

37

Strong comprehension of renewable energy benefits

Nearly all are aware of renewable energy sources.

Comprehension of environmental impact and potential energy bill savings is high.

90

79

54

47

21

17

1

0 50 100

Better for the environment

They will reduce my energy bills

They are safer

They are better for my family's health

They are more reliable

They will save me time

I don't know

97% are aware of renewable energiesPerceived benefits of renewable energies % (n=1394)

38

Barriers are design build, cost and knowledge

44

30

30

27

23

16

16

16

8

6

3

2

2

2

2

0 20 40 60

My home was not designed for these types of …

They are expensive to buy

I don't know how

These energy sources are not popular in homes

I don’t have the time to organise this

These energy sources are not convenient

I rent my home and can not take action

I live in an apartment and con not take action

The weather is not right for this type of energy

I am not convinced they will save me money

I do not trust these energy sources

I don't know

They are not reliable sources of energy

I am not convinced they will help the environment

They are not safe sources of energy

97% are aware of renewable energiesReasons for not using % (n=1394)

So what?

39

1. The most energy efficient households have shared dwellings and large households. The least efficient have small households and air conditioning.

2. The most energy efficient households which exist today are declining. They are a factor of a low living space per person.

3. The desire to live in urban Vietnam, in single household dwellings, with less generations and hence a shrinking household size, is not a new phenomena.

4. Increasing economic progress will only increase demands for energy sapping durables and devices, straining available energy resources.

5. The building materials used to date have limited influence on household energy efficiency.

6. Consumers have a strong comprehension of renewable energy benefits. However the barriers are design, build, cost and knowledge.

Household energy efficiency will decline without action

40

1. More energy efficient design to reduce energy resources for cooling particularly.

2. More efficient building design and materials which enable dwellings to absorb, retain, and release, at the appropriate times, radiate heat.

3. Residential access to and business incentives to provide renewable resources in new built homes.

4. Residential access to and incentives to convert to more efficient cooling/heating. Access encompasses availability and affordability (possibly financing).

5. Raising consumer knowledge and demonstrating household costs savings are both critical.

Design, build, access, incentive and education

41

1. A nationwide standard method of survey measurement and benchmarking needs to be established.

2. Promote greater transparency and sharing of data, making it more readily available to research institutions, corporate bodies and individuals who are looking to carry out research that support the development aims for Vietnam.

3. Build an educational campaign to promote comprehension of and accessibility to the 1. efficient use of existing energy, 2. conversion to more efficient energy sources and 3. new design and build models.

4. Establish a new public/private sector project, aimed at developing energy efficient housing models, against which future developments can be measured.

What next…

42

Download your copy at www.cimigo.com

cimigo.com The Voice of the Customer

43

About Sustainable Futures Asia

44

45

Professional ‘sustainability’ services

Sustainable Futures Asia (SFA) was established in 2011 to provide professional sustainability services throughout the South East Asia region.

SFA provide services in three key areas:

• Project Consulting – assisting governments and private enterprise in reviewing existing, and developing new economically sustainable business strategies.

• Architecture & Urbanism – providing sustainable design solutions, either leading or as part of the client design team, including VGBC Lotus accreditation services.

• Knowledge Creation – carrying out research in to sustainability issues, and organising sustainability conferences and other knowledge sharing events.

www.sustainablefutures.asia

http://www.sustainablefutures.asia

46

Dr Vu Thi Hong Hanh

Hanh is a Vietnamese registered architect who has lived and worked in Vietnam, Australia and the United Kingdom, completing her MSc in Melbourne, Australia and her PhD in Oxford, UK.

Hanh teaches at the Ho Chi Minh City University of Architecture.

Matt Parkes RIBA

Matt is a UK registered architect who has worked in Vietnam since 2004, having previously lived and worked in the UK and Hong Kong.

With an MSc in Climate Change and Sustainable Development, Matt is now undertaking PhD research into new models of sustainable housing here in Vietnam.

Founding members

47

Khai Duong Joint

Stock Company

Recent clients include

Partner organisations

About Cimigo

48

Vietnam Indonesia India

China Hong Kong

Philippines Singapore

3 billion customers We now have the privilege of representing

Starting 10 years ago in Vietnam we’ve expanded to...

49

From seven

main cities in Vietnam…

50

consumer-rooted growth

Online Panels 45 Consultants

130 Full-time staff

12 Qualitative Specialists

5 Call Centres

Face-to-face

…put the consumer into the boardroom to deliver

650 Fieldworkers

Cimigo’s extensive set of resources and expertise...

51

Cimigo delivers a full range of services to ensure your business remains connected to your consumers

Motivational research

Market scoping and segmentation

Concept testing

New product development

Brand positioning

1. Consulting Services

Market tracking

Product optimisation

Brand equity

Touch point management

Customer loyalty

2. Research Services Ethnography

Accompanied shopping

In-depth interviewing

Focus groups

Vox pops

Telephone interviewing

Street intercepts

Mystery shopping

On line surveys

Social media tracking

52

Cimigo for Brand Value And for stronger consumer engagement & intelligence.

www.facebook.com/CimigoVietnam

@cimigovietnam

www.linkedin.com/company/cimigo

53

Thank You

Sustainable Futures Asia Matt Parkes [email protected] www.sustainablefutures.asia

Cimigo Richard Burrage [email protected] www.cimigo.com

March 2013

cimigo on vietnam residential energy use 2013

Technology

future projections

hhold annum

hhold annumvariance

average base0factors

renewable

air con fair

household

energy efficient