In the context of Vietnam accelerating energy transition and implementing its commitment to net zero emissions by 2050, solar power, especially in the industrial and commercial (C&I) segments, is becoming an important solution.
Convenient
Vietnam has a clear natural advantage with high radiation intensity, creating favorable conditions for solar power development. In previous years, incentive mechanisms such as FIT have contributed to forming a market and raising business awareness about renewable energy.
The increasing demand for green electricity of the business sector, especially FDI enterprises. Multinational corporations are placing high requirements on ESG and sustainable supply chains, forcing factories in Vietnam to transform. In addition, many customers of Constant Energy - in industries such as textiles, plastics, and steel - are under great pressure from the carbon tax (CBAM) mechanism applied from 2026 when exporting to Europe.
In fact, many businesses have deployed rooftop solar power, but this solution only meets about 12–20% of electricity demand. To achieve the goal of using fully renewable electricity, businesses are forced to combine solutions such as DPPA and energy storage (BESS). This is a great opportunity for investors like Constant Energy.
Difficulties
The biggest challenge currently lies in the incomplete and unsynchronized legal framework. Although DPPA is currently allowed to be implemented, many contents are still unclear such as licensing procedures or implementation guidelines at the local level.
Another challenge is for DPPA through private lines, the problem of land funds and infrastructure in industrial parks, especially in the North. DPPA through private lines helps optimize costs if roofs, lakes or land funds near industrial parks are utilized. However, in reality, finding land funds suitable for reasonable costs is very difficult, limiting the ability to expand scale. As for DPPA through the national grid, it will take advantage of the national electricity infrastructure to supply electricity from distant power sources. Thereby, it will help businesses use full renewable energy sources at more competitive prices in the production process.
On the other hand, solutions such as storage batteries (BESS) play an important role in stabilizing the system and optimizing electricity costs. However, BESS prices are still high, while industrial electricity prices are not attractive enough for widespread deployment.
Recommendations
To promote solar power and attract FDI, Constant Energy proposes to complete the DPPA legal framework in a clear, transparent and synchronous direction between localities for DPPA through the national power grid. The application for licenses and implementation in localities is currently not synchronized.
For DPPA via separate lines, the electricity price framework for equivalent types has not been announced, causing difficulties in implementation.
