A rooftop solar power system with a capacity of 2.17 MWp is set to be installed on the rooftop of Duy Tan Binh Duong Plastics, a key facility within the Duy Tan Plastics Group. This industrial solar power initiative is being developed under a Power Purchase Agreement (PPA) model, with BayWa r.e. Vietnam as the investor and Vu Phong Energy Group serving as the project developer and EPC contractor. The collaboration, formalized on December 16, 2022, marks a significant step towards green production for one of Vietnam’s leading plastic manufacturers. This project highlights a growing trend among manufacturing companies to adopt renewable energy solutions, reinforcing their commitment to sustainable development and environmental stewardship.
Duy Tan Plastics Advances Green Production with 2.17 MWp Rooftop Solar Project
This project signing occurs as an increasing number of businesses, particularly in the manufacturing sector, turn to solar power as a core component of their green production and sustainable development strategies. As a top-tier plastics manufacturer in Vietnam with a significant international presence, Duy Tan Plastics views environmental responsibility as both a duty and a mission. The company has consistently worked towards creating zero-waste factories, managing solid waste, exhaust gases, and wastewater. The objective of sustainable development is central to Duy Tan Plastics’ strategy, balancing production growth with a focus on human resources and environmentally friendly products.
This commitment is further strengthened by its largest shareholder, SCG Packaging, a multinational leader in consumer packaging solutions known for its adherence to sustainable development and the integration of ESG strategy in its investments. This focus on environmental and social benefits is a guiding principle for its business activities.
Driving Sustainability Through Renewable Energy
To advance its green manufacturing goals, Duy Tan Plastics is transitioning its factories to renewable energy sources, with a strong emphasis on solar. The 2.17 MWp rooftop solar power system at the Duy Tan Binh Duong Plastics Plant is projected to generate approximately 3,000,000 kWh of clean electricity annually. This will help Duy Tan Plastics reduce its carbon emissions by nearly 2,000 tons of CO2 per year. Beyond the significant emission reduction, this industrial solar power project enables Duy Tan Plastics to achieve substantial energy savings, lower production costs, and optimize profitability. These efficiencies can translate into more competitive product pricing, strengthening its market position.
Representatives of BayWa r.e. Vietnam, Duy Tan Plastics Binh Duong and Vu Phong Energy Group at the project signing ceremony
During the signing ceremony, Mr. Tri, Nguyen Quang, CEO of Vu Phong Energy Group, expressed his satisfaction in partnering with industry leaders like Duy Tan Plastics on their journey toward sustainable development. He noted that this project is the latest collaboration between Vu Phong Energy Group and BayWa r.e. Vietnam, a global renewable energy developer. Together, they aim to expand clean energy systems across the country, supporting Vietnam’s national commitment to achieve net-zero emissions by 2050.
“Vu Phong Energy Group is extremely appreciative of this partnership due to the economic, social, and environmental benefits that we will jointly generate. Based on our solid professional capacity and extensive experience, Vu Phong Energy Group is committed to developing a high-quality solar power system while ensuring safety and progress. Duy Tan Binh Duong Plastics Factory will receive the highest level of efficiency and experience when using clean energy during the system’s construction and operation,” Mr. Tri, Nguyen Quang stated at the ceremony.
This special moment marks a successful start for the solar power project on the rooftop of the Duy Tan Binh Duong Plastics Factory
Operating on a self-production and self-consumption model, the system will reduce greenhouse gas emissions, contribute to greening the economy, and promote sustainable growth without straining the national power grid. This collaboration underscores Vu Phong Energy Group’s dedication to the United Nations Sustainable Development Goals, including Goal 7 (Affordable and Clean Energy), Goal 8 (Decent Work and Economic Growth), Goal 13 (Climate Action), and Goal 17 (Partnerships for the Goals).
Understanding the PPA (Power Purchase Agreement) Model
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The PPA (Power Purchase Agreement) is a flexible cooperation model that enables businesses to use clean energy with no upfront investment. This model is one of the most effective renewable energy solutions for commercial and industrial clients seeking immediate cost savings and sustainability benefits. Under this arrangement, Vu Phong Energy Group and our investment partners fund high-quality rooftop solar power systems for businesses. The energy is then sold to the enterprise at a rate consistently lower than prevailing utility prices. Businesses utilize their idle roof space to access clean energy, ensuring electricity cost savings regardless of EVN’s pricing structure. A long-term contract provides proactive control over energy prices and mitigates risks from future rate hikes. At the end of the contract, the solar power system is transferred to the business for free (0 VND), with a performance commitment of over 80-90% efficiency, depending on the terms. This approach to green production for plastic enterprises and other industries is both financially and environmentally advantageous. Businesses interested in the PPA solar power system and other clean energy solutions for sustainable development are invited to contact our Call Center at 1800 7171 or +84 9 1800 7171, or email hello@vuphong.com for more information. |
Vu Phong Energy Group
