Samsung Electronics Vietnam Initiates Renewable Energy Procurement via Direct Power Purchase Agreement

Samsung Electronics Vietnam Thai Nguyen (SEVT) has distinguished itself as the inaugural company in Vietnam to procure renewable electricity through a Direct Power Purchase Agreement (DPPA). Situated in Thái Nguyên province, SEVT finalized negotiations and executed Vietnam’s premier DPPA contract using the national power grid infrastructure, allowing the firm to directly acquire renewable energy for its production activities.

According to the terms of the agreement, SEVT will annually receive approximately 70 GWh of electricity sourced from solar energy. This quantity correlates to the average yearly power consumption of roughly 17,000 Vietnamese households and is projected to mitigate carbon dioxide emissions by about 46,000 tons each year.

The solar energy supplied to SEVT will originate from the Đức Huệ 2 solar power facility, located in Tây Ninh province, with a designed capacity of 49 MWp/41.4 MWAc. This facility will play a role in enhancing the proportion of renewable power within Vietnam’s overall energy portfolio.

Strategic Implications and Contributions

• Guidance from Schneider Electric, a prominent global energy consultancy, underscores the feasibility for multinational manufacturers to secure renewable energy via direct procurement, thereby fostering broader energy transition initiatives.
• This agreement supports Samsung Electronics Vietnam’s broader renewable energy objectives. Previously, Samsung Electronics Vietnam (SEV) in Bắc Ninh and the Samsung Electronics HCMC CE Complex (SEHC) in Hồ Chí Minh City expanded their renewable energy usage through on-site rooftop solar panels, slated for completion by 2025.
• Both facilities are actively pursuing additional DPPA-related power supply contracts to further augment their renewable energy acquisition.

For further details, visit the Samsung Vietnam Newsroom.