Samsung Electronics’ Renewable Energy Journey in Vietnam | Feature Story | Focus | Sustainability

RENEWABLE ENERGY VIETNAM

Building a Renewable Energy Ecosystem in Vietnam:
Across Our Operations and Beyond

Samsung Electronics’ renewable energy* journey in Vietnam

Renewable energy refers to energy harnessed from natural sources, such as solar and wind power.

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Toward a Clean
Energy Transition

As Asia's manufacturing landscape
rapidly grows, the need for power
increases alongside it.
This surge makes the shift to
clean energy more critical than ever.

In particular, renewable energy such as
solar power is a key driver
of
businesses’ transition to clean energy
and sustainable growth.

Yet, securing a consistent supply of
renewable energy presents ongoing
challenges for many companies.

Overcoming these challenges requires
cross-sector partnerships,
bringing together diverse stakeholders
to accelerate progress.

Collective Efforts to Drive Change

While the public sector builds policy
frameworks, power generators and energy
providers
supply renewable power and
expand grid connectivity.
Specialized organizations and industry
players bring the expertise and coordination
needed to put these plans into action.

It is only when these vital roles come
together that the renewable energy
transition truly gains momentum.

Government
& Public Sector Build policy and
market foundations
Power Generators
& Energy Providers Supply renewable energy
and expand grid connectivity
Enterprises &
Specialized
Organizations Drive implementation,
and provide technical reviews
and guidance
Supply Chain
Partners Expand renewable energy
adoption across the industry

As a founding member of the Asia Clean
Energy Coalition (ACEC),
an alliance supporting the clean energy
transition in Asia’s manufacturing hubs,
we are driving this collaborative progress
with various stakeholders.

On-Site PPA at SEHC

Harnessing Facility Rooftops
to Generate Renewable Energy

In 2026, Samsung Electronics Ho Chi Minh
City CE Complex (SEHC) launched a
large-scale on-site Power Purchase
Agreement (PPA) project by transforming
its rooftops into power generation platforms.

SEHC generates solar power directly
on previously idle roof space,
without requiring additional land.

Under this on-site PPA model,
renewable electricity is generated,
purchased, and consumed directly on-site,
enabling the complex to meet a portion of
its electricity demand with renewable power.

The SEHC rooftop installation marks
a major milestone for
large-scale
on-site PPA implementation at a single
manufacturing facility in Vietnam.
Equipped with roughly 45,000 solar panels,
the site generates over 40 GWh of
renewable electricity each year,
which is expected to reduce CO₂ emissions
by more than 26,000 tonnes annually.

This initiative signals a strategic
leap forward.
By establishing on-site
generation infrastructure,
the project lays the groundwork
to scale into off-site PPAs,
securing
large volumes of renewable electricity
through external transmission grids.

approx. 28 MWp Installed capacity across
roughly 45,000 panels
40 GWh+ Estimated annual renewable
electricity generation
26,000 t+ Estimated annual CO₂
emissions reduction*

Data sourced from Vietnam Electricity (EVN) and the General Statistics Office (GSO)

Expanding
Renewable Energy
Horizons

A Direct Power Purchase Agreement
(DPPA)
is a policy mechanism
that allows corporate
buyers
to directly procure renewable energy
through agreements with private power
generators, in addition to purchasing from
state-owned utilities.

DPPA

Delivering Renewable Energy
Through the National Grid

While an on-site PPA enables facilities
to consume
electricity generated
directly within their premises,
a DPPA sources renewable electricity produced
off-site and delivers it
via direct
connections or the national grid.

Discussions around a DPPA framework
in Vietnam
first began in 2019,
culminating in July 2024
when a government decree established
the regulatory foundation.
2019

New Possibilities
on the Horizon

Since discussions on Vietnam's DPPA
first
emerged in 2019, Samsung Electronics
has consistently supported its adoption
and provided technical insights
to ensure stable implementation.

Working through our role in the ACEC,
we engaged closely with diverse
stakeholders
to help shape the initiative.
July 2024

Establishing the
Regulatory Foundation

Thanks to these collaborative efforts,
the Vietnamese government officially issued
the DPPA Decree in July 2024,
strengthening the regulatory foundation
for corporate renewable energy procurement.

Today, this framework is being put into
operation at our manufacturing sites.

DPPA at SEVT

Pioneering a
New Approach
to
Renewable Energy Procurement
Through DPPA

With the newly established regulatory
framework in place,
Samsung Electronics
Vietnam Thai Nguyen (SEVT) proactively
entered into a DPPA in 2026.
SEVT began sourcing approximately
70 GWh of solar electricity annually
through the national power grid.

The power is supplied by a renewable energy
project integrated with a Battery Energy
Storage System (BESS),
located in
southern Vietnam's Tây Ninh Province.

To ensure project viability,
Samsung Electronics consulted a global
energy firm
to design an optimal transaction
structure tailored to the business.

The 70 GWh of renewable electricity
secured annually by SEVT is
equivalent to
the power consumed by roughly
17,000 households in Vietnam each year.
Through this agreement, the site expects
to reduce annual CO₂ emissions
by approximately 46,000 tonnes.

As a pioneering transaction under
Vietnam’s DPPA framework,
it demonstrates how the regulatory
foundation
and collaboration among diverse
stakeholders can enable tangible renewable
energy procurement for businesses.

70 GWh Estimated annual
renewable
electricity supply
17,000 Equivalent number of
households
powered
annually*
46,000 t Estimated annual
CO₂
emissions
reduction*

Data sourced from Vietnam Electricity (EVN) and the General Statistics Office (GSO)

Aggregated Demand Creates New Markets

The experience we have gained through
our own energy transition in Vietnam
now provides a practical foundation
for supporting our local suppliers.

However, for suppliers
with lower electricity demand,
executing independent renewable power
purchase agreements remains
a practical challenge.

To overcome this, aggregating individual
power demand into collective purchasing
volume
creates the scale
needed to reshape the market.
In doing so, businesses can help stimulate
the development of new renewable energy
projects
while securing more favorable
procurement conditions.

Building a Renewable Energy
Ecosystem Together

Looking ahead, Samsung Electronics will
continue to support our suppliers in Vietnam
by bringing together individual demand
to create meaningful scale and
leveraging our procurement experience
and expertise to facilitate their transition
to renewable energy.

By lowering barriers to procurement
and working closely with stakeholders
across the ecosystem,
we aim to help foster a
sustainable market environment in which
renewable energy is more accessible.

As we advance step-by-step toward
our renewable energy transition and
net-zero goals,
we will continue
to connect and collaborate with partners
across the ecosystem,
driving lasting change across the industry.

FAQ

We aim for 100% renewable energy across DX Division and our overseas sites* by 2027,
and across all Samsung Electronics operations, including DS Division (semiconductor business), by 2050.

Overseas sites include Samsung Electronics sites outside South Korea operated by both DX and DS Divisions.

A DPPA is a policy mechanism that enables corporate buyers with large electricity demand to purchase renewable electricity directly from generators. In Vietnam, renewable electricity procured through a DPPA can be supplied either via a dedicated transmission line or through the national grid.

We actively engaged with diverse stakeholders from across various sectors and industries to support the development of the DPPA framework, with the objective of establishing a market environment where corporate consumers can reliably procure renewable electricity.

Since initial discussions on the DPPA began in Vietnam in 2019, we have underscored the critical need for this mechanism to achieve net zero, while providing technical recommendations to support its effective implementation by businesses.

Furthermore, as an active member of the Asia Clean Energy Coalition (ACEC) alongside other global companies, we have consistently communicated our insights to various stakeholders.

SEHC sources renewable electricity directly from on-site rooftop solar installations, which are estimated to generate more than 40 GWh annually.

Meanwhile, SEVT procures approximately 70 GWh of renewable electricity annually via the national grid from off-site solar power facilities, as a key application of the DPPA.

We have implemented various initiatives to support our suppliers' transition to renewable energy through training, knowledge transfer, and collaboration with renewable energy providers.

We supported suppliers in South Korea and Vietnam in selecting specialized renewable energy companies. As a result, eight suppliers in South Korea and five in Vietnam successfully installed solar power self-generation systems in 2025.

In addition, under our Partner Collaboration Programs, we provided consulting to help suppliers expand their use of renewable energy and supported investment in solar power self-generation systems through the ESG Fund.

Building a Renewable Energy Ecosystem in Vietnam: Across Our Operations and Beyond

Toward a Clean Energy Transition

Collective Efforts to Drive Change

Harnessing Facility Rooftopsto Generate Renewable Energy

Expanding Renewable Energy Horizons

Pioneering a New Approach to Renewable Energy Procurement Through DPPA

Aggregated Demand Creates New Markets

Building a Renewable Energy Ecosystem Together

FAQ

What is Samsung Electronics’ renewable energy roadmap?

What is a Direct Power Purchase Agreement (DPPA)?

How did Samsung Electronics contribute to establishing the DPPA framework?