Samsung Electronics has announced that Samsung Electronics Vietnam Thai Nguyen (SEVT) has finalized negotiations and signed the first Direct Power Purchase Agreement (DPPA) in Vietnam via the national grid, officially transitioning to renewable energy for its manufacturing operations.

Under the agreement, SEVT will be supplied with approximately 70 GWh of solar power annually, an amount equivalent to the electricity consumption of about 17,000 Vietnamese households. The project is expected to reduce carbon dioxide emissions by roughly 46,000 tons per year.

The electricity for SEVT will be sourced from the Duc Hue 2 Solar Power Plant, which has a design capacity of 49 MWp/41.4 MWAc. Located in Tay Ninh Province, the facility was developed and invested in by the TTC Duc Hue - Long An Joint Stock Company. The integration of this power source into the grid contributes to increasing the proportion of renewable energy within the national power mix.

During the negotiation and signing process, Schneider Electric served as the energy consultant for Samsung Electronics.

This is considered the first commercial transaction to be implemented since the DPPA mechanism officially took effect in Vietnam. It marks a significant milestone in the development of a competitive electricity market and expands the ability of the corporate sector to access renewable energy sources.

“Through this inaugural DPPA, we hope to contribute to the growth of Vietnam’s renewable energy market while actively supporting global efforts to address the climate change crisis,” said Mr. Na Ki Hong, General Director of Samsung Vietnam.

Source: VnEconomy