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A peek into Vietnam’s green adoption

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Reading Time: 5 minutes

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A recently published white paper titled “Is There a Future for Green Buildings in Vietnam?” assesses the current market overview of Vietnam’s green building industry. The document was released by Solidiance – an Asia-focused B2B management consultancy firm – in partnership with Vietnam Green Building Council (VGBC).

According to the paper, the green buildings market in Vietnam is still at the early stages of development, primarily as a result of cost sensitivities, low electricity prices, short-term thinking and misaligned incentives between building developers and users, an underdeveloped regulatory market, and a limited supply of skilled employees with green building awareness.

At present, there are only approximately 40 buildings that have achieved a green building certification in Vietnam. These are concentrated in the industrial sector, initiatives driven by global corporate guidelines, Corporate Social Responsibility (CSR), and the need to reduce operating expenses. However, office buildings and the hospitality sector are also seeing increased green building adoption as property developers seek to attract premium rates and stand out in crowded markets. The residential segment has been lagging on low awareness and short-term cost considerations, though certain technologies such as solar water heaters have taken off.

What drives green initiatives in Vietnam?

Global corporate guidelines are leading many multinationals to go green. This is the case with Big C’s Green Square store in southern Binh Duong province, as well many industrial facilities.

Sales & marketing strategies for offices and residential buildings to enhance brand value, increase occupancy rates, and ultimately attract premium rental fees. President Place, the first LEED gold office building in Vietnam, was opened in 2012 in Ho Chi Minh City, aiming to capitalize on its status as first in market.

Cost savings aimed at reducing operating expenses by building users, especially for energy costs. The need to reduce energy costs will increase in urgency and importance as Vietnam’s government continues to move towards market-based pricing of power, resulting in price hikes.

Low supply of high-grade buildings a chance for green buildings to carve out a niche and attract those companies looking for superior office space to what is currently on the market.

What are the barriers stalling the development of green building?

Low electricity prices relative to the rest of Southeast Asia is a disincentive to promoting energy efficiency. The government is planning to raise electricity prices but tariff hikes have been gradual to limit the impact on inflation, production, and low-income consumers.

Limited skills availability in the market as universities and training institutions are only beginning to address the topic of green buildings.

Short-term thinking and misaligned incentives by property developers focused on short-term costs rather than long-term savings available to building users.

Lack of government incentives has not provided property developers with the short-term benefits needed to drive green building adoption.

Low awareness and price-sensitivity among domestic companies that tend to work with local suppliers without green building materials or technologies, as leading suppliers of green buildings materials and technologies are typically multinational corporations who work primarily with international developers.

Current two primary green certification that is currently used in Vietnam

Property developers in Vietnam have two primary choices when aiming for green building certification: LEED and LOTUS. LEED was developed by the U.S. Green Building Council (USGBC) and is recognized around the world as a leading ratings tool. LOTUS is based on the same principles as other green buildings ratings tools including LEED but it was developed to fit Vietnam’s climate, infrastructure, regulations, and level of economic development in order to increase its relevance to the local market.
At present, there are more LEED-certified buildings in Vietnam but the first pilot set of criteria for LOTUS was only introduced in 2010. With support from VGBC and due to its local relevance, LOTUS will continue to gain in prominence in Vietnam.

Cost and Benefits of Going Green in Vietnam

Short term costs: A primary barrier to green building adoption is short-term cost considerations and the perception that going green is markedly more expensive than not doing so. But is it really that much more expensive to go green? As LOTUS certification has yet to become widely adopted, data on implementation costs are not yet available. However, experience from implementation in other tropical areas shows that the cost premium for going green is anywhere from 1-10% that of a normal building. With local suppliers of green building materials and technologies still limited in Vietnam, the costs might prove higher in the short-term but as demand for such products increases, supply will rise, and costs will drop.

Long term gains: Payback on investment will happen with lower operating costs as well as increased rental income and potentially higher occupancy rates for green office buildings and hotels. Lower operating costs come primarily in the form of lower electricity bills, with efficient air-conditioners, low-energy lights, and energy-efficient glass each providing anywhere from 5-10% energy savings. In addition to hard monetary savings, a greener building that provides natural light, improved air quality and access to green space has been demonstrated to improve employee productivity and lower absentee rates.

Developing a skilled workforce to build green

For the green buildings industry to take off, green building industry leaders with the required skills need to emerge. Developing these skills at Vietnam’s universities will be key to promoting green buildings.

A handful of universities and training centres have responded to the small, but, growing market demand by offering green architecture and energy-saving classes, as well as hosting urban development and energy-saving conferences through partnership with foreign universities.

The private sector is also involved in green initiatives. For example, Holcim promotes green and sustainable practices in Vietnam by holding a competition for universities students annually. The challenge is to develop green and sustainable ideas. The jury votes and Holcim finances the best ideas into reality.

The Vietnam green building Council (VGBC), key to skills development in Vietnam, began offering LOTUS training in June 2011 with its LOTUS Accredited Professional course and Green Buildings Basics. Interest in LOTUS training courses has mainly been concentrated in Ho Chi Minh City, which registers 3x more participants than Hanoi.

How is Vietnam’s regulatory environment impacting green building development?

While economic development has been the primary focus of policymakers, the government has begun to put regulations in place designed to promote energy efficient buildings and define a green buildings development road map. During the period of 2005-2012, a series of laws were passed to promote energy efficiency.

What is needed to further boost the industry is clear and attractive incentives for developers to build green, possibly including preferential and fast-track approvals process for new building permits, as well as the establishment of green building standards in public buildings, which would help raise awareness and drive demand for green building materials and technologies.

How can industry players, Government agencies, civil society, and multilaterals boost the industry in Vietnam?

Industry players can…
• Generate demand by raising awareness, promoting showcase projects, and most importantly, demonstrating return on investment.
• Develop and promote products and technologies that are suitable to Vietnam’s environment and market.
• Partner with other leading multinationals to offer integrated and complementary green buildings solutions.
• Get involved through Vietnam Green Building Council (VGBC), EuroCham’s GreenBiz Working Group, and other industry associations to advise the government on regulatory reform, promote best practices, and build a network of like-minded professionals.
• Support universities and advise them on the development of a green building curriculum, as well as offer internships to students to give them practical, on-the-ground experience in the industry.

Government agencies can…
• Implement incentives for developers to build green
• Establish green building standards for public buildings
• Define a green buildings development road map, following the release of the Green Growth Strategy
• Carrot and stick approach – in addition to offering incentives, provide clear punishments for those violating green buildings regulations and regularly enforce

Vietnam Green Building Council can…
• Train people who work in sustainable construction (architects, project managers, suppliers)
• Develop green buildings network, raise awareness in Vietnam
• Advocate and advise policymakers

Multilateral agencies can…
• Initiate and finance trainings on green buildings and LOTUS through Vietnam’s NGO network
• Offer technical advice to government ministries to improve the regulatory environment

Source: Is There a Future for Green Buildings in Vietnam? (white paper by Solidiance & VGBC)
Link : http://www.solidiance.com/whitepaper/is-there-a-future-for-green-buildings-in-vietnam.pdf

This article was published in Building Review Journal vol 29 no. 1. For more market insights and White Papers, please visit Solidiance.

Landmark Green Alliance Announced Between Singapore And Macau Companies

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Singgapore’s CPG Facilities Management (CPG FM) and Green Koncepts announced a landmark green alliance today with Macau’s eNovation Technologies to introduce innovative intelligent cloud energy management solutions and services to help companies from different industries in Macau drive greater energy efficiency and sustainability. The alliance agreement was formally signed during the Macau International Environmental Co-operation Forum and Exhibition’s (MIECF) official signing ceremony today.

Through this strategic alliance, the three companies will work closely together to deliver a comprehensive suite of solutions to drive the green agenda in Macau.

CPG FM, no stranger to Macau as it assisted the local government in applying for its first BCA Green Mark in 2014 for its Olympic Sports Complex, will offer cost-effective and quality facilities management consultancy and services to help companies abroad achieve Singapore’s Green Mark Certification and other Green Accreditation standards. Green Koncepts will offer Energetix, its new Intelligent Cloud Energy Management solution, to help businesses centrally monitor and manage their electrical, water and gas usage on a single platform from any web-enabled device, anytime, anywhere. Energetix is currently adopted for use by both blue-chip and SME customers as well as some agencies participating in Singapore’s Jurong Lake District (JLD) Smart Nation Pilots & Trials. Energetix seeks to equip businesses with powerful visualisation, advanced energy analytics and intelligent controls to help them make smarter decisions for energy saving opportunities and achieve their sustainability targets. eNovation Technologies will provide its market knowledge and be the local reseller and implementation partner in Macau.

The Alliance aims to empower Macau’s property developers and owners, facilities managers, government agencies and urban planners with real time energy intelligence to help them achieve optimum energy performance and meet their sustainability goals. One of the goals of the Alliance is to enable buildings in Macau to cut their energy consumption by 10% to 30%, in accordance with Singapore’s BCA Green Mark Certification standards.

“In order to generate the most cost-effective solutions, we will integrate our service offerings with green accreditations and real time building performance monitoring technologies which will largely facilitate the development of smart townships for the longer term benefit of the community. This alliance is opportune for us to オンライン カジノ combine and deliver our service offerings holistically. We also hope to see this alliance enhance our capabilities in contributing to the development of smart cities and enlarge our competitive edge in Macau.” said Mr. Seng Joo How, Managing Director of CPG Facilities Management.

“’Be Green’ has been one of the hottest topics in Macau in the recent years. Many of the enterprises and government departments have been investing in green solutions and technologies, such as energy efficiency, water saving, IAQ improvement and green buildings are booming here. We believe that this alliance will provide a good option of the Green solution and service to our customers,” said Mr. Sam Liu, CEO of eNovation.

“This alliance marks Green Koncepts’ first foray into Macau and the region. We are excited to be collaborating with CPG Facilities Management and eNovation to offer Energetix in this fast growing market. By leveraging the power of cloud and big data analytics, we are able to deliver real time energy intelligence to help businesses optimise their energy consumption and reduce costs,” said Mr. Stephen Kang, Vice President, Sales & Channels, Green Koncepts.

The three companies will be jointly showcasing their innovative technology and services at MIECF, The Venetian Macao from 26-28 March 2015, Booth J52-10.

Danfoss Turbocor and Haier saves 1,500 CO² emissions

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Danfoss Turbocor® and Haier build highly efficient air conditioning systems for KAI FU JIAN GUO Hotel at Zhengzhou International Airport – China and save 1,500 CO² emissions

Full View of Zhengzhou Kaifu Hotel

Full View of Zhengzhou Kaifu Hotel

As for energy consumption in hotel operations, air-conditioning systems take a large proportion due to long operation times, i.e. running around the clock. Statistics show it accounts for 30-50% of the energy consumption of the hotel. For large hotels, air conditioning systems are more complex due to the huge volume of the buildings, the multi-functional areas as well as to the varying cooling load affected by the occupancy rate, seasonal variations, diurnal variations and other factors. How to meet load variations of a hotel while being energy efficient has become a major issue in the design of air conditioning systems for large hotels. Therefore, from the beginning of its construction, Zhengzhou KAI FU JIAN GUO Hotel was determined to seek a superior energy-saving solution for the air conditioning systems of the hotel.

Energy efficient and stable operation all year round

Across from Zhengzhou International Airport, Zhengzhou KAI FU JIAN GUO Hotel is just a road’s width away from the waiting hall of the airport, and is the only five-star hotel in the airport area. The hotel covers an area of 90,000 m2 with a landscape-style architecture, in which the main building has two floors and the annex building five floors. It has 172 guest rooms, large and small meeting rooms, Chinese and Western restaurants, private compartments, recreation centers and a 460m2 Grand Ballroom. The building structure of the hotel is lower than high-rise buildings but on a larger surface. Meanwhile, Zhengzhou”s climate is typical continental monsoon climate characterized by obvious seasonal and daily temperature difference. The air conditioning system operates from April to September each year in part-load and only in peak load for one month between July and August, during which the highest outdoor daytime temperature can reach 40 degrees Celsius. Finally, the water-cooled chiller unit solution with magnet oil-free variable-speed centrifugal compressor jointly best online casino developed by the Central Air Conditioning Division of Haier Group with Danfoss Turbocor® Compressors stood out from many other solutions.

Meeting IPLV of 11.5

The  hotel operates with two chillers that totalize 2110kW of cooling capacity globally.  Each chiller is equipped with two Danfoss Turbocor® inverter centrifugal compressors TT400 with oil-free magnetic bearings. Danfoss Turbocor® compressors utilize integrated variable speed technology with drive control. When the condensing temperature and/or heat load changes, the cooling capacity can be adjusted to the actual need by the drive, which regulates the compressor motor speed impeller. This reduces energy consumption and improves stability of the unit so as to ensure the unit can run smoothly even in a load condition as low as 10%. The IPLV of the unit can reach 11.5 in part load conditions. In compressors, traditional oil-lubricated bearings are replaced by magnetic bearings. Traditional oil-lubricated bearing chillers may hinder heat transfer of heat exchangers and consume more energy because of the lubrication process. The ASHRAE research report shows that a chiller unit with every 3.5% oil increase will consume 8% more of electricity; magnetic bearings help chiller units achieve the goal of 100% oil-free operation, enabling higher energy efficiency during the unit functioning.

Designed for endurance

The unit is designed with two compressors and both can run independently. Before one of them reaches full-load capacity, the other one starts to operate based on the left load, adjusts to the required capacity and avoids the full-load operation of the first compressor. This unit design enhances the lifetime of the compressors and improves overall system safety.

CO² emissions reduced by 1,500 tons in 5 years

More than five years have passed since the unit was carried into operation by the hotel in June 2008, and the air conditioning system is running stably. “After one year, the monitoring data showed that compared to traditional screw chillers, the variable speed centrifugal chiller had saved us about 50% energy. We are very satisfied with its energy efficiency”, says Mr. Ma, Director of Operations of KAI FU JIAN GUO Hotel Zhengzhou. “The magnet variable speed central air conditioner also addresses the problem of constant and stable functioning of air conditioning in low-load operating conditions”, he adds. “The monitoring data also shows that the current system using Turbocor inverter oil-free centrifugal compressors help saving 300,000 kWh of electricity and up to RMB 230,000 in electricity costs per year compared with an unit equipped with screw chillers. It reduces the CO² emissions by about 300 tons annually”.

The other fantastic news is that the energy efficiency of this chiller exceeds the efficiency of systems like water pumps. Usually, the energy consumption of chiller systems can be twice the one of water pump systems. Based on measurements done at Kaifu Hotel, the energy consumption of these chillers is only half of the one of a traditional water pump system.

During both the installing and operating period of the solution, the hotel’s management team and system installation group measured other advantages with this oil-free magnetic bearing variable-speed system. The size of the compressor is only half of the screw machine, saving a lot of room space needed for air conditioners. Besides the very low noise, vibration-free operation of only 72 dB eliminates the need for insulation equipment and facilitates the unit construction, but also saves on system installation costs; the oil-free principle further saves after-sales maintenance cost, which is expected up to RMB 400,000 for the entire life cycle. These additional advantages also won the recognition from the hotel management team.

 

PARKROYAL on Pickering Wins President’s Design Award 2013

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Reading Time: 3 minutes

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PARKROYAL on Pickering, Singapore’s first hotel-in-a-garden, has been awarded Design of the Year by The President’s Design Award 2013. Singapore’s most prestigious design accolade recognizes excellence across all design disciplines and is conferred by the President of the Republic of Singapore.

 

The Award venerates buildings that make a significant difference to the community by improving quality of life through design. Entries are judged by a panel of expert jurors from both Singapore and overseas. Jointly organised by DesignSingapore Council and the Urban Redevelopment Authority (URA), this year’s award saw a total of 131 nominations. In total, nine awards were given out for Design of the Year.

 

PARKROYAL on Pickering, designed by the award winning WOHA, is one of only 65 projects to have been singled out since The President’s Design Award was first founded seven years ago. This year, the hotel was commended by the Jury for ’’solving a complex problem radically with imagination and flair, bringing lush greenery and integrated landscape to high-rise development’’.

 

The Design of the Year joins a host of awards already received by PARKROYAL on Pickering in its first year of operation. Since opening in January 2013, the property has established itself as a design icon and ground-breaking hotel garnering accolades, across the spectrum of architecture, design, property, sustainability and greenery.

 

 

Most recently, the hotel was given the Outstanding Award by the Skyrise Greenery Awards 2013. Granted by Singapore’s National Parks Board (NParks), PARKROYAL on Pickering was recognized for the skillful integration of sky gardens within the hotel’s architecture, allowing guests to view and enjoy greenery from every room. PARKROYAL on Pickering was also named Hotel of the Year by the World Architecture News (WAN) Awards 2013. Judges described the property as a garden online casino of ‘warmth and vitality’ floating through Singapore’s canyon of concrete. PARKROYAL on Pickering’s sustainable project design and green efforts have also earned the 2013 HICAP Sustainable Project Design Award, as well as the Solar Pioneer Award for its innovative solar energy system. It has also been the first hotel awarded with the BCA Green Mark Platinum, Singapore’s highest green rating.

 

 

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About PARKROYAL on Pickering
PARKROYAL on Pickering, a PARKROYAL Collection hotel, is managed by the Pan Pacific Hotels Group. A further expression of the PARKROYAL brand, a PARKROYAL Collection hotel is distinguished by its unique architecture and design elements while embodying the intrinsic PARKROYAL characteristics of modern comfort, uncomplicated service and authentic local connections.
Designed by award-winning architectural firm WOHA, PARKROYAL on Pickering adopts a hotel-in-a-garden concept and incorporates energy-saving features throughout the property. Its sustainable project design and green efforts have earned it the BCA Green Mark Platinum, Singapore’s highest green rating, as well as the Solar Pioneer Award for its innovative solar energy system.
Strategically located at the key gateways to Singapore’s central business district, Hong Lim Park and bustling Chinatown, the 367-room property provides an urban oasis in downtown Singapore, with convenient access to waterfront entertainment and dining options along the Singapore River as well as cultural gems across the island. PARKROYAL on Pickering, a PARKROYAL Collection hotel, is ‘Your Trusted Local Companion’ in Singapore.