Samsung Electronics Vietnam accelerates climate action by expanding renewable energy purchases – Samsung Global Newsroom

Samsung Electronics Vietnam is on track to step up its climate action by increasing its purchases of renewable energy.

On July 3, the Vietnamese government issued a decree on the Direct Power Purchase Agreement (DPPA), which allows companies to buy renewable energy from private producers without intermediaries.

The agreement 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 purchased 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 continuously working 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 net zero carbon emissions goals and provided technical advice on how to implement the mechanism in a stable manner. Samsung has also continued to communicate with stakeholders through the Asia Clean Energy Coalition (ACEC), a coalition of renewable energy buyers, in collaboration with vendors and financiers to strategically change policies 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.”