H&M Vietnam signs green deal with PECC2

November 22, 2024 | 19:49

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The Swedish clothing retailer H&M has signed a green energy deal to facilitate its Vietnam-based suppliers to convert to renewable energy sources.

The MoU, on cooperation under the Direct Power Purchase Agreements (DPPA) mechanism, is between H&M Vietnam and the Power Engineering Consulting JSC 2 (PECC2). The deal, signed on November 19, marks an important step towards the international fashion brand's sustainable development goals.

This event also marks a new beginning for PECC2. It is the first DPPA cooperation agreement signed with a major global fashion brand, and is expected to help H&M access clean energy at reasonable costs.

The successful execution of DPPAs will be crucial to boost the viability of wind and solar power projects in Vietnam and jumpstart the commercial operations of transitional renewable energy projects launched over the past five years.

This is the first DPPA agreement signed in line with new regulations of the government's Decree No.80/2024/ND-CP, approving the mechanism between renewable energy generators and large off-takers.

As part of the signing ceremony, H&M representatives visited the BESS system installed at the PECC2 Innovation Hub building, the Operations Control Center, and the Digital Capability Center to learn about the application of technology in remote power plant operations and the digitalisation of power plant projects.

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