Building Vietnam's Clean Energy Future: Insights from the Corporate Clean Energy Procurement Spring Kick-off 2025
The Asia Clean Energy Coalition (ACEC), in collaboration with the Fashion Industry Charter for Climate Action, Clean Energy Buyers Association (CEBA), Fulbright School of Public Policy and Management (FSPPM), successfully hosted the highly anticipated ‘Corporate Clean Energy Procurement Capacity and Community Building Series: Vietnam Spring Kick-off 2025.’ This exclusive gathering brought together key stakeholders from the fashion industry, clean energy buyers, and leading academic and industry experts to delve into the dynamic landscape of Vietnam’s renewable energy market.
The event served as a pivotal platform for knowledge sharing and strategic discussions with participants gaining invaluable insights into the latest trends, best practices, and burgeoning opportunities shaping Vietnam's clean energy future.
Here are some of the discussions that took place, led by industry experts:
Vietnam Market Overview and Policy Updates & RE Procurement Options:
Prof. Le Viet Phu, Environmental Policy Lecturer at FSPPM, provided a comprehensive overview of Vietnam's evolving power sector and policy landscape, highlighting the urgent need for energy system reform to meet growing demand and net-zero goals. He outlined key developments in PDP8, emphasizing challenges in implementing LNG, offshore wind, and nuclear energy projects. Prof. Phu stressed the importance of addressing regulatory gaps, financing risks, and grid constraints. His insights laid the foundation for understanding the role of enabling policies and bankable mechanisms in scaling renewable energy procurement.
Key Updates on Rooftop Solar:
Dr. Le Thoa, Technical Team Lead at GIZ, offered a detailed exploration of Vietnam’s rooftop solar (RTS) policy landscape, highlighting the country’s strong renewable energy growth and emerging regulatory reforms. She explained the evolving legal framework shaped by newly issued Decrees (56, 57, 58, 61/2025/ND-CP), with a focus on Decree 58/2025, which replaces Decree 135/2024/ND-CP and introduces clearer procedures for RTS registration, commissioning, and surplus electricity sales. Dr. Thoa emphasized that these updates aim to remove capacity constraints, support broader market access, and simplify licensing, grid connection, and monitoring procedures for RTS investors.
Essential News Developments on Vietnam's Direct Power Purchase Agreement (DPPA):
Mr. Duc Nguyen, ACEC’s Head of Policy for Vietnam, presented a briefing on the updated Direct Power Purchase Agreement (DPPA) mechanism following the issuance of Decree 57/2025/ND-CP. The presentation outlines the core features of both physical and virtual DPPA models, clarifies the roles of key stakeholders—including renewable energy developers, large electricity consumers, and electricity retailers in industrial zones—and explains the payment structure involving VWEM market prices, strike prices, and regulated charges such as DPPA charges and clearing charges. It also highlights ACEC’s ongoing policy advocacy efforts and underscores the importance of continued collaboration through multi-stakeholder working groups to support successful DPPA implementation.
Corporate Clean Energy Procurement Trends
Ms. Hanh Phan of BloombergNEF (BNEF) provided a comprehensive overview of global and Vietnam-specific trends in corporate clean energy procurement, emphasizing the accelerating shift toward 24/7 carbon-free electricity strategies.
From a financial perspective, she outlined recent policy amendments to Vietnam’s DPPA framework that enhance cost transparency and expand eligibility for both buyers and sellers. BNEF data revealed that new solar is currently the most cost-effective bulk generation option in Vietnam, with DPPA surcharges ranging from $8.6 to $24.9/MWh (upon available 2024 data), and wholesale market prices constituting the largest cost component.
Ms. Hanh also highlighted the growing presence of RE100 and SBTi-aligned corporates in Vietnam, underscoring rising demand for credible renewable energy procurement through DPPA mechanisms.
Developing and Constructing Renewable Energy Projects in Vietnam: Key Considerations and Recommendations
Mr. Tung Phan, Director of Project Development at IPC E&C, presented key insights on renewable energy project development under Vietnam’s evolving DPPA framework. He highlighted Vietnam’s strong solar and wind potential—particularly in central and southern regions—and outlined the full lifecycle of renewable projects from site selection to EPC construction and O&M.
The presentation emphasized that while DPPA unlocks investment opportunities, challenges remain around legal procedures, grid infrastructure, and financing. Mr. Tung Phan emphasized the need to streamline permitting processes, expand access to green financing, and enhance collaboration between renewable energy developers and large electricity consumers to enable bankable and scalable project deployment.
Approaches and Perspectives to DPPA CFD Negotiations
Dr. Ananth Chikkatur, Specialist Leader at Deloitte Consulting US, provided expert insights into the complexities of negotiating Forward Electricity Contracts (FECs) under Vietnam’s DPPA mechanism. He unpacked the financial interactions between RE generators, large consumers, and EVN within the Virtual DPPA model, explaining key pricing elements such as VWEM spot prices, strike prices, and regulated DPPA and clearing charges.
Emphasizing that FECs are new but solvable, Dr. Chikkatur highlighted the importance of transparent, good-faith negotiations, robust market understanding, and aligning interests across both buyers and sellers. He also provided recommendations on how to determine and structure strike prices, manage FX risks, and incorporate renewable energy certificates (RECs) and storage into long-term clean energy procurement strategies.
Energy Storage Solutions (BESS) for Industrial Storage
Mr. Minh Phan, Energy Business Associate Director at VinFast, showcased the transformative potential of Battery Energy Storage Systems (BESS) in optimizing electricity costs, enhancing energy reliability, and integrating renewable energy across commercial, industrial, and grid-scale applications.
Highlighting VinFast’s fully integrated battery value chain—from in-house R&D to giga-scale manufacturing—he emphasized the company’s ability to deliver safe, high-performance, and customizable energy storage solutions. The presentation also explored real-world deployments, including microgrid models combining solar, diesel, and BESS, and identified strong market signals driven by policy support (Decree 58/2025, Circular 05/2025). Mr. Minh Phan underlined that BESS is not only key to decarbonizing Vietnam’s industrial sector, but also central to achieving grid stability and operational flexibility in a clean energy future.
Forging Pathways Through Collaborative Dialogue
The event culminated in an engaging panel discussion featuring subject matter experts from ACEC, adidas, PepsiCo, Nami Energy, and Deloitte Consulting US. The session offered a multi-stakeholder dialogue on Vietnam’s evolving Direct Power Purchase Agreement (DPPA) framework, highlighting both policy progress and persistent implementation challenges.
Panelists revisited key barriers—including the limited execution of EVN-Grid DPPAs, despite growing interest in physical-wire models—and explored pathways for scaling DPPA adoption in 2025. Emphasis was placed on enhancing market transparency, disclosing EVN cost components, and building institutional capacity for both corporate buyers and renewable energy developers.
Discussions also addressed the critical role of the private sector in accelerating deployment. Actionable recommendations included streamlining permitting procedures, improving Contract for Difference (CfD) literacy, and strengthening buyer-developer collaboration. Panelists acknowledged the complexity of CfD mechanisms and called for clearer contractual templates and regulatory guidance.
The increasing role of Battery Energy Storage Systems (BESS) was also spotlighted, with speakers noting its potential to improve grid flexibility and support reliable renewable energy procurement. The session concluded with consolidated industry recommendations and key takeaways focused on aligning stakeholder efforts and enabling bankable, scalable DPPA implementation in Vietnam’s power market.
Looking Ahead at Vietnam’s Renewable Energy Future
The discussions we had underscored the critical role of collaboration and knowledge sharing in driving clean energy adoption. ACEC is committed to continuing its efforts in fostering a sustainable energy future for Vietnam and the broader Asian region. A vital component of this endeavor is recognizing that community building is essential to enhancing sustainability throughout the supply chain. ACEC serves as a crucial platform to consolidate resources, convene valued stakeholders, and create essential spaces for constructive dialogue. By facilitating these interactions, we aim to accelerate the transition to clean energy, ensuring that all key players are aligned and empowered to contribute to a greener future.
Moving forward, ACEC will build upon the momentum generated at this event by deepening our engagement with policymakers, industry leaders, and community members. We will continue to provide educational resources, facilitate strategic partnerships, and advocate for policies that promote the widespread adoption of renewable energy. Together, we can forge a path towards a sustainable and prosperous future for Vietnam and the entire Asian region. We extend our sincere gratitude to all our partners, speakers, and participants for their invaluable contributions.
Follow ACEC on LinkedIn and stay tuned for more updates and initiatives from ACEC as we continue to champion the transition to clean energy in Asia.
