Empowering a net-zero energy future for Vietnam

Mr. Brandon Chia, Managing Director, Sustainable Energy Solutions (SEA and Australia), at SP Group

Promote green energy projects in Vietnam

According to S&P Global, the carbon dioxide (CO2) emissions from the ASEAN power sector are projected to continue rising, reaching a peak of 805 million metric tons (MMT) by 2029. Subsequently, emissions are expected to stabilize from 2029 to 2040 as the region phases out 20 Gigawatt (GW) of coal-fired power during this period while adding 54 GW of new gas capacity to ensure stable electricity generation, while balancing with the integration of renewable energy supply.

One of the fastest ways for businesses to reduce emissions is by transitioning to green electricity sources. With its commitment to achieving net-zero emissions and phasing out coal, Vietnam has been attracting significant investment in green energy. During the period 2015-2022, Vietnam attracted 106.8 billion USD of foreign direct investment (FDI) into the renewable energy sector, ranking 2nd among developing economies in the world. Despite global economic challenges, funds from green energy portfolios continue to flow strongly into Vietnam, thanks to favorable natural conditions and robust support policies. According to the ADB’s Country Director’s assessment, Vietnam is in a very favorable position to continue attracting green investment capital.

One company that has been steadily growing its sustainability footprint in Vietnam over the past few years is SP Group. With its proven suite of digital and green energy solutions that is successfully deployed across markets like Singapore, China and Thailand, SP Group has announced its commitment to invest 500 million USD (equivalent to 12,000 billion VND) in sustainable energy solutions in Vietnam until 2025. Subsequently, the company has been actively developing rooftop solar projects across the country through partnerships and joint ventures. In the future, as the government approves and implements the Direct Power Purchase Agreement (DPPA) mechanism, SP Group aims to be the only end-to-end clean energy solutions provider to meet the sustainability needs of customers, aligning with SP Group's long-term goal to actively contribute towards Vietnam's efforts in achieving net-zero emissions by 2050.

Mr. Brandon Chia, Managing Director, Sustainable Energy Solutions (Southeast Asia and Australia), SP Group explained that Vietnam’s strong sustainability potential and its strong governmental support are central for SP Group’s decision to bring our sustainability expertise to the country. He said, “The Vietnamese Government announced ambitious green targets to reach net-zero by 2050, showing the importance and the support that the government is placing behind its climate change ambitions to develop a clean energy future for the country. With an abundance of natural resources for renewable energy, SP Group aims to bring our sustainability expertise to contribute towards the country’s decarbonisation targets by growing the renewable energy capacity, and bringing in our suite of proven innovative, sustainable energy solutions to empower the country’s clean energy transformation.

Mr Chia added “Providing solar power in both rooftop and utility-scale solutions, showcases SP Group’s long-term commitment to enable commercial and industrial customers across Vietnam to achieve their decarbonization goals,”

Three Green Energy Solutions from SP Group

SP Group aims to contribute towards Vietnam’s decarbonization targets, by leveraging its expertise in sustainable energy and digital solutions to help reduce electricity consumption and to reduce carbon emissions. Some of these solutions include sustainable cooling solutions like district cooling and cooling as a service, and SP’s own GET^TM digital energy management tools.

1. Green Energy Tech (GET^TM) Solution

GET™ is an integrated digital solution that combines various building systems and diverse data sources to create a seamless and sustainable utility management experience. This solution can be tailored for various use-cases, and is applicable to industrial parks, factories, mixed-use buildings, and integrated developments.

Designed and developed by SP Group, the suite of GET™ digital solutions utilizes Internet of Things (IoT), and Artificial Intelligence (AI), to enable building owners to optimize energy use, improve productivity, and profitability by better utility management. The digital solutions also enhancing occupants' well-being with better air quality, temperature control, and cooling optimization, all while driving sustainable development efforts.

2. Rooftop Solar Solutions

In the official document approving the PDP8 for the period 2021-2030, with a vision to 2050, issued on May 15, 2023, the Prime Minister clearly stated the goal of striving for by 2030: 50% of office buildings and 50% of residential houses to use rooftop solar power for self-generation and self-consumption (for on-site consumption, not selling electricity to the national power grid). With specific tax incentives and exemptions recently introduced by the Ministry of Planning & Investment for rooftop solar investors, solar capacity is expected to continue growing rapidly. This renewable energy solution has become a preferred renewable energy source for many Vietnamese businesses.

In addition to typical rooftop solar installations, SP is able to enhance the performance of these solar installations through its GET™ digital solutions, further optimizing the generation, storage and usage of solar energy. SP also has the engineering expertise to complement the generation and usage of solar energy with various Energy Storage Systems (ESS) and GET™ digital solutions that further strengthens the performance of the rooftop solar systems.

Rooftop solar solutions are expected to contribute to meeting the energy demand and potential trajectory of the implementation of National Power Development Plan 8 (PDP8), enabling buildings, commercial centers, and industries to use and optimize green energy.

3. District Cooling & Cooling as a Service

A substantial way to help townships, industrial parks and buildings save energy is through reducing energy consumed by air-conditioning, with cooling systems accounting for up to 50 per cent of a building's total energy consumption. With Vietnam’s hot and humid climate in the south, air-conditioning is prevalent. To address the substantial energy consumption in urban areas, District Cooling (a centralized cooling system for a designated area) is a feasible sustainable cooling solution. Chilled water is centrally produced and distributed through a closed-loop network of pipelines achieving economies of scale, which saves energy and reducing carbon emissions.

SP's district cooling network at Marina Bay, Singapore

SP Group is currently the largest District Cooling System operator in the region with successful projects in Singapore and China. SP Group also owns and operates the world’s underground district cooling system in Singapore's Marina Bay Area. Since the system started operations in 2006, the cooling network has achieved zero supply disruptions. When the network is expanded in 2027, it will serve 32 buildings and developments in the vicinity, helping Marina Bay to reduce its carbon emissions by 25,000 tonnes annually. This is equivalent to removing 22,700 cars off the roads.

Although District Cooling is not yet installed in Vietnam, given the significant energy consumption for cooling systems in the central and southern regions, it holds promising potential for construction and investment entities for districts, townships and industrial parks, offering up to 30% energy savings compared to conventional cooling systems while providing stronger reliability.

Individual buildings and integrated developments can also leverage on SP Group’s Cooling as a Service to optimise their chiller operations and enjoy reliable, hassle-free, and cost-effective cooling.

As a leading utilities group and sustainable energy solutions provider in the Asia-Pacific region in markets such as Singapore, China and Thailand, SP Group is driving the development of future energy with intelligent energy solutions and low-emission alternatives for its customers. By providing bespoke sustainable energy solutions that will meet the various clean energy requirements of our different customers, SP Group will help them to achieve their unique sustainability targets and goals.