International Community Rallies to Support Vietnam’s Journey to Net-Zero
In partnership with MJA Vietnam, on behalf of the World Resources Institute (WRI), ACEC co-hosted a critical mid-year webinar that delved into the latest developments in Vietnam’s climate and energy policies. The webinar provided a platform for corporate energy buyers, international cooperation partners, and philanthropic organizations to share insights and explore the opportunities and challenges within Vietnam’s energy transition.
The discussion centered on significant developments in Vietnam’s energy transition, including the Direct Power Purchase Agreement (DPPA), Power Development Plan VIII (PDP 8), rooftop solar incentives, Battery Energy Storage Systems (BESS), and the Just Energy Transition Partnership (JETP). These policy mechanisms, each with its unique contributions, form the backbone of Vietnam’s ambitious decarbonization efforts. Successful implementation will require a coordinated approach to ensure that Vietnam's energy transition is fair, sustainable, and aligned with its global climate commitments.
One of the main highlights of the event was the DPPA, which allows renewable energy producers to sell electricity directly to private consumers. This policy is critical for corporations in Vietnam that are striving to decarbonize their operations. The DPPA gained momentum following the issuance of the decree on July 3rd, but it was emphasized the need for further clarifications before full implementation can take place.
Battery Energy Storage Systems (BESS) emerged as another crucial topic. Experts agreed that BESS has the potential to revolutionize Vietnam's grid stability as more intermittent renewable energy sources are integrated. However, as noted during the dialogue, the lack of a solid legal framework for BESS has been a barrier to unlocking its full potential. International stakeholders like the Global Energy Alliance for People and Planet (GEAPP) are working with the government to address these gaps, with pilot projects already underway to showcase the strategic value of BESS.
The Just Energy Transition Partnership (JETP), with its $15.5 billion funding commitment, was also highlighted as a critical initiative to drive investment into Vietnam’s clean energy transition. The integration of JETP into Vietnam’s energy planning, as seen with its inclusion in PDP 8, represents a crucial step forward in aligning the country’s renewable energy goals with global financing mechanisms.
A Call for Continued Collaboration
Throughout the dialogue, it became clear that Vietnam’s success in achieving its net-zero ambitions will hinge on sustained collaboration among the government, private sector, and international partners. Platforms like the Asia Clean Energy Coalition (ACEC) are crucial in facilitating cross-sector discussions, mobilizing corporate voices, and advocating for policy reforms that support renewable energy procurement and grid improvements.
As highlighted by Suji Kang, Program Director at ACEC, the next steps for Vietnam will involve a coordinated effort to monitor DPPA developments, align market operations with PDP 8, and foster technological innovation to enhance grid capacity. ACEC remains committed to ensuring that these initiatives not only support Vietnam’s energy transition but also position the country as a leader in renewable energy across the region.
By continuing to foster collaboration and open dialogue, Vietnam can build on its policy wins and create a sustainable energy future that benefits all stakeholders—local and international. The work ahead is challenging, but with the right partnerships and a shared commitment to Vietnam’s net-zero goals, the road to 2050 looks promising.
