Vietnam Introduces Direct Power Purchase Agreements for Renewable Energy
Government Decree Enables Businesses to Buy Renewable Energy Directly from Private Producers
The Vietnamese government has issued a decree covering direct power purchase agreements (DPPAs), which enable businesses to buy renewable energy directly from private producers.
The agreement, signed on July 9, permits businesses to enter into contracts with private producers of renewable energy, in addition to the state-owned Vietnam Electricity (EVN), for amounts exceeding a specific threshold. Currently, businesses obtain their renewable energy primarily from the purchase of renewable energy certificates (RECs) or from small-scale solar panels installed on their roofs.
Samsung Electronics Vietnam to Benefit from DPPA Implementation
Samsung Electronics Vietnam will be able to fortify the institutional framework for securing renewable energy with the implementation of the DPPA.
Samsung Electronics has been assiduously collaborating with multiple stakeholders, such as the Vietnamese government and civil society organizations, to implement the climate strategy and establish the DPPA system. Samsung has emphasized the necessity of introducing a renewable energy procurement mechanism as soon as possible to achieve the nation’s net-zero carbon emissions goals and has offered technical advice on how to implement the mechanism since the first DPPA discussions started in 2019.
Along with working with sellers and financiers, Samsung has persisted in communicating with stakeholders via the Asia Clean Energy Coalition (ACEC), a coalition of buyers of renewable energy, in an effort to strategically alter policy in important Asian markets like Vietnam.
Samsung’s Commitment to Renewable Energy Procurement
Executive vice president Joo Ho Choi, general director of Samsung Vietnam Complex, stated, “We plan to get in touch with large-scale renewable energy producers proportionate to the size of operations at Samsung Electronics Vietnam through the DPPA and make competitive purchases of renewable energy.” “We are committed to collaborating with the Vietnamese government to enhance Vietnam’s infrastructure for renewable energy.”
