The rooftop solar systems will have a significant role in the development of Ho Chi Minh City’s green economy

The development and use of clean and renewable energy sources, notably rooftop solar power, is a necessary solution that will greatly contribute to the construction and growth of a green economy in Ho Chi Minh City. This is the consensus of experts who spoke at April 18, 2023, Meeting “Building and Developing a Green Economy in Ho Chi Minh City,” hosted by the Ho Chi Minh City Institute for Development Studies in collaboration with the Business Studies & Assistance center.

Meeting on Green Economy in HCMC

The Meeting “Building and Developing a Green Economy in Ho Chi Minh City” was attended by many managers, scientists, researchers, leaders of some associations such as the Ho Chi Minh City Plastics Association, the Handicraft and Wood Industry Association of Ho Chi Minh City, leaders of some businesses, experts at institutes/schools, and some media agencies.

Scenery of the Meeting “Building and Developing a Green Economy in Ho Chi Minh City”

Delegates discussed the status and need for building and developing a green economy in Ho Chi Minh City, the roadmap for green economic development, and Ho Chi Minh City’s targets for the green economic development program in the area during the Meetin. Business representatives additionally shared initiatives and solutions for establishing a green economy in Ho Chi Minh City.

Role of Solar Power in HCMC’s Green Economy

Mr. Phong, Pham Nam, Chairman of Vu Phong Energy Group’s BOD, a company with nearly 15 years of clean energy development and known as a leading professional solar developer in Vietnam, shared about the benefits and necessity of developing the use of clean and renewable energy sources, especially rooftop solar power, in building and developing a green economy in Ho Chi Minh City.

Mr. Pham, Nam Phong believes that using solar power would be an efficient solution to reduce greenhouse gas emissions and establish a low-carbon, green economy in Ho Chi Minh City. This is because the energy sector now accounts for around 30% of total emissions. Meanwhile, Ho Chi Minh City has a lot of potential for switching to renewable energy. As of the end of 2022, the rooftop solar power’s capacity in Ho Chi Minh City was just 358 MWp, a very small figure compared to the total technical potential estimated to reach over 5,000 MWp. Due to the high demand for load balancing, developing RTS in Ho Chi Minh City will not put pressure on the power grid system, but will instead help increase on-site power supply, increase supply capacity for the city’s power system, and play an important role in meeting the growth needs of Ho Chi Minh City (on average, a 1% GDP growth means a 1.5% increase in electricity consumption, which is equivalent to an annual increase of at least 10% in energy consumption in Ho Chi Minh City).

Mr. Phong, Pham Nam – Chairman of Vu Phong Energy Group’s BOD – shared at the Meeting

HCMC’s Transition to a Green Economy

Recently, several pioneering enterprises in Ho Chi Minh City have been leading the way in green growth and sustainable development using renewable energy solutions. However, this trend towards sustainable development is happening globally, with many large corporations worldwide requiring their entire supply chains to go green. As a result, enterprises need to use clean energy to get orders proactively. Mr. Phong, Pham Nam believes that enterprises must be proactive and receive help to transition to clean energy, proactively use greenhouse gas emission reduction measures to enhance competitiveness, and contribute to the development of a green economy in Ho Chi Minh City.

Mr. Phong, Pham Nam emphasized that numerous project developers and investors, such as Vu Phong Energy Group, are ready to assist companies in reducing emissions by using rooftop solar power systems. With flexible collaboration models such as the PPA (Power Purchase Agreement) model pioneered by Vu Phong Energy Group, businesses may use solar power without investing in system installation, only needing to utilize idle factory roofs. Businesses may use not only clean energy to reduce emissions but also save many of their monthly electricity bills by purchasing electricity at lower costs than the current electricity price from rooftop solar power systems. At the end of the agreement, the solar power system will be transferred for free (0 VND) to businesses, with a commitment to system performance when transferring more than 80-90%, depending on the conditions. This approach is now used in around 80% of the rooftop solar power projects Vu Phong Energy Group is developing for enterprises.

Vu Phong Energy Group is collaborating with several industrial enterprises in many sectors to reduce emissions and aim for sustainable development via the PPA (Power Purchase Agreement) model, including prominent corporations such as Vinamilk, Duy Tan, Kem Nghia, and Dong A Plastic… In particular, some of these systems have received prestigious international awards for energy.

Businesses that use rooftop solar power will contribute to reducing greenhouse gas emissions and promoting a low-carbon, green economy

Mr. Phong, Pham Nam believes that Ho Chi Minh City is proposing to the Government that rooftop solar power systems be permitted to develop on the premises of administrative agencies and public service units under the City’s jurisdiction. If a similar financial solution is used by leveraging private funding sources alongside the City’s Budget, it will address financial barriers.

During the meeting, Mr. Phong, Pham Nam suggested that Ho Chi Minh City strive for carbon neutrality in construction projects, such as buildings. Currently, regulations for reducing greenhouse gas emissions while protecting the ozone layer in Government Decree 06/2022/ND-CP (released on January 7, 2022) contain specified requirements for each sector to conduct greenhouse gas inventories and take steps to reduce emissions in each phase. As a result, if Ho Chi Minh City establishes requirements for buildings and facilities to achieve carbon neutrality, businesses will be strongly motivated to reduce their emissions. Mr. Phong, Pham Nam also mentioned that Vu Phong is currently investing in a Renewable Energy Equipment Manufacturing and Research Center Project in Saigon Hi-Tech Park (SHTP), which focuses on solutions such as maximizing natural resource use, reducing energy consumption, increasing greenery, and collecting and reusing rainwater to achieve carbon neutrality in building design.

The perspective of Vu Phong Energy Group Renewable Energy Equipment Manufacturing and Research Center Project in Saigon Hi-Tech Park, Ho Chi Minh City

Building and developing a green economy in Ho Chi Minh City needs significant resources and resolve from all parties, particularly collaboration of government agencies and businesses, including both state-owned and private enterprises. Implementing multiple solutions together will assist Ho Chi Minh City achieve high efficiency in establishing a green economy and leading the national path of green growth and sustainable development.

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News about the Meeting ” Building and Developing a Green Economy in Ho Chi Minh City” on HTV9 (Source HTV)

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