Samsung Electronics Vietnam to Expand Renewable Energy Purchases

The Vietnamese government has issued a decree to cover direct power purchase agreements (DPPAs), which allow companies to purchase renewable energy from private producers without intermediaries.

The agreement signed on July 9 allows companies to sign renewable energy contracts above a certain scale with private producers, not just state-owned Vietnam Electricity (EVN). Until now, companies have mainly sourced renewable energy through small solar panels on their roofs or by purchasing renewable energy certificates (RECs).

With the implementation of the DPPA, Samsung Electronics Vietnam will be able to strengthen the institutional foundations for securing access to renewable energy.

Samsung Electronics has been working continuously with various stakeholders, including the Vietnamese government and civil society organizations, to implement the DPPA system and the climate strategy. Since the first discussions on the DPPA began in 2019, Samsung has emphasized the need to introduce a renewable energy mechanism as soon as possible to achieve the country’s net zero carbon emissions goals, and has provided technical advice on how to implement the mechanism.

Samsung continues to communicate with stakeholders through the Asia Clean Energy Coalition (ACEC), a coalition of renewable energy buyers, in partnership with vendors and financiers, to strategically shift policy in key Asian markets, including Vietnam.

“Through the DPPA, we plan to engage with large renewable energy producers in proportion to the size of Samsung Electronics Vietnam’s operations and make competitive purchases of renewable energy,” said Executive Vice President Joo Ho Choi, General Manager of Samsung Vietnam Complex. “We will continue to work with the Vietnamese government to develop Vietnam’s renewable energy infrastructure.”

Vietnam approves DPPA for rooftop solar and biomass projects A recent government decree allows rooftop solar, waste-to-energy and biomass projects to enter into Direct Power Purchase Agreements (DPPAs) without having to go to Vietnam Electricity (EVN).

US commends Vietnam for approving DPPA decree The United States Mission in Vietnam praised the government for approving the decree on the direct energy purchase agreement.

24 renewable energy projects show interest in direct power purchase agreement A total of 24 renewable energy projects with a combined capacity of 1,773 MW have expressed interest in participating in a pilot direct power purchase agreement (DPPA) in Vietnam, according to a report by the Ministry of Industry and Trade (MoIT) submitted to Prime Minister Pham Minh Chinh last week.