The move marks the ongoing expansion of GreenYellow in Vietnam, which will contribute to the country's net-zero emission target by 2050. The rooftop solar power system was installed with a total capacity of 5MWp, located at the New Wing factory in Van Trung Industrial Zone in the northern province of Bac Giang.

The project is expected to produce 5,300MWh of solar energy per year, which will in turn offset about 4,500 metric tonnes of CO2 emissions over a 12-month period.

New Wing, an energy arm of Foxconn Group, a major player in manufacturing semiconductors and other electronic components, has deployed its sustainable development strategy by entering a power purchase agreement with GreenYellow.

The French firm will be the sole investor and operator of New Wing’s solar power system over the 20-year period of the contract. The project marks an important milestone in GreenYellow’s investment in the Vietnamese market, especially in the northern region.

This project will also add to GreenYellow's growing solar portfolio in Vietnam. In November 2022, GreenYellow took over a 49.5MWp solar farm from Qair, a French independent renewable energy producer. Sebastien Prioux, CEO of GreenYellow Vietnam and Cambodia, cited a report from the International Energy Agency (IEA) indicating that Vietnam is the second-largest electricity consumer in Southeast Asia.

"Vietnam's ambitious green energy goals now place it in a position to become a regional and global leader and a focal point for renewable energy financiers and investors," said Prioux.

To facilitate the goal, Deputy Prime Minister Tran Hong Ha finally approved the country's Power Development Plan VIII (PDP8) last May.

“With PDP8 approved, the aim now is to ensure energy security for the country while it begins its transition to being carbon-neutral by mid-century. Consequently, Vietnam's renewable energy sector represents a huge opportunity for investors to consider and make viable long-term plans,” Prioux added.

Vietnam is stepping up its efforts to accelerate the peak of its greenhouse gas emissions and transition from fossil fuels to clean energy. As a result, foreign and domestic investments are on the rise in the renewable energy sector. Meanwhile, more enterprises are starting to join corporate social responsibility campaigns with green energy commitments.

This trend is opening a new world of opportunities for GreenYellow, which has established itself as a key player in the energy efficiency markets in different countries like France, Brazil, Colombia, South Africa, and Thailand.

In Vietnam, GreenYellow is developing the business under two types of contracts, the Energy Efficiency Agreement (EEA) and the Utility as a Service (UaaS). EEA is primarily a financial solution for the client. The energy efficiency concept is based on a system to reduce energy consumption while still ensuring the same output, which is achieved through automation and process optimisation.

Meanwhile, UaaS is GreenYellow's strategy for financing retrofit projects. It helps clients modernise their sites with more efficient machines and automated operations. As GreenYellow invests in the new system, the client will be able to focus its investments on their core business while GreenYellow takes care of the utilities.

The first EEA was signed between GreenYellow and an international retail chain in Vietnam. The energy efficiency project provides the client with more than 800 MWh of savings annually, equivalent to VND2 billion ($85,000). Its flagship UaaS project is a retrofit for industrial refrigeration, representing a 1GWh reduction in energy consumption per year for the client, equivalent to VND1.9 billion ($81,000).

In addition, the firm also offers Battery Energy Storage Systems (BESS), which help save grid operational costs as well as money for electricity consumers who install energy storage at their businesses. By using energy storage during brief outages, businesses can avoid costly disruptions and continue normal operations. GreenYellow is implementing a BESS pilot project in Vietnam and will soon make an announcement on that.

With over 16 years of investment and operations expertise and 930 MWp of solar agreements signed globally, GreenYellow made its first entry into Vietnam in 2019 with the aim of accelerating the low-carbon trajectory of large companies. To date, GreenYellow has invested more than VND2.6 billion ($111,000) for a total capacity of 170MWp in solar power generation in the country, engaging more than 100 businesses.