Direct power purchase agreements, which is a key driver of global renewable energy infrastructure – especially for wind and solar, are expected to pilot soon in Vietnam to attract private investment and meet the clean energy needs of international enterprises.

Vietnam has recently created several favourable policies, including the Politburo’s Resolution No.55-NQ/TW on the orientation of Vietnam’s national energy development strategy to 2030 with a vision towards 2045, to boost renewable energy development, with a new programme of corporate power purchase agreements being formulated to attract funding into the sector. Vaibhav Saxena, lawyer at Vietnam International Law Firm, ventures into the policy outlook on renewable energy in this country, which may prove extremely beneficial for financiers who expect to grow their energy investments.

While direct power purchase agreements have been one of the key drivers of global renewable energy infrastructure, especially in wind and solar, there is no defined plan for a pilot mechanism in Vietnam yet, raising the question of when and how the country can meet the clean energy needs of international enterprises.

Vietnam is already home to many multinational companies that are committed to going 100 per cent renewable or have established science-based targets to reduce greenhouse gas emissions. Brian Hull, country managing director of ABB in Vietnam, told VIR’s Phuong Thu about the company’s efforts to unlock access to corporate power purchase agreements in Vietnam as part of achieving a zero emission future.