US First Solar, Vietnam power firm PECC2 boost renewable energy ties

Vietnam’s Power Engineering Consulting JSC 2 (PECC2) and the United States’ First Solar will collaborate in utilizing the direct power purchase agreement (DPPA) mechanism and distributing the latter’s photovoltaic (PV) modules.

The two sides signed an MoU for the move last week, PECC2 said on Monday. The signing is a milestone in the strategic partnership between PECC2, under national utility Vietnam Electricity (EVN), and First Solar, a leading American manufacturer of solar modules.

Via the DPPA mechanism, PECC2 will provide green and clean electricity at competitive prices, helping First Solar gradually achieve its goal of using 100% renewable energy in its global manufacturing operations by 2028.

PECC2 and First Solar will cooperate on some projects in the future, reaping tangible benefits and reducing the reliance on traditional energy sources, thereby contributing to the growth of renewable energy in Vietnam.

This is PECC2's second cooperation agreement under the DPPA mechanism, following an agreement signed with fashion brand H&M in November. PECC2 has been developing renewable energy projects to supply green and clean electricity via the DPPA mechanism to large enterprises, including H&M.

Decree 80/2024 issued by the Vietnamese government on direct power purchase agreements (DPPA) between renewable energy developers and large consumers took effect on July 3, 2024.

It defines large consumers as those who’ve consumed at least 200,000 kWh per month on average in the last 12 months. Firms that have been consuming power for fewer than 12 months will also be deemed large consumers if they have consumed at least 200,000 kWh per month.