Samsung Electronics Vietnam Becomes First Company in Vietnam To Purchase Renewable Electricity Through DPPA, marking a significant milestone in sustainable manufacturing practices and setting a precedent for electronics recycling.
Last reviewed by Samantha Holloway on 16 June 2026
What Is the Direct Power Purchase Agreement (DPPA)?
The Direct Power Purchase Agreement (DPPA) allows large corporations to directly purchase renewable electricity from power plants. For Samsung Electronics Vietnam Becomes First Company in Vietnam To Purchase Renewable Electricity Through DPPA, this means they can now secure a fixed price for clean energy over long periods, reducing reliance on traditional fossil fuels and lowering carbon footprints.
According to the Apple Environmental Report 2024, apple recovered over 1 tonne of gold from recycled devices in 2023.
In June 2026, SEVT became the first company in Vietnam to sign a DPPA contract. This agreement enables them to source renewable electricity directly from solar or wind farms through the national power grid. By doing so, Samsung can ensure that their manufacturing processes are increasingly powered by clean energy sources rather than coal or natural gas.
How Does This Affect Electronics Recycling?
This move towards renewable energy in electronics production sets a higher standard for sustainable practices across the industry and influences how companies approach e-waste management. As manufacturers like SEVT shift to cleaner operations. There's less pollution from fossil fuel emissions associated with the manufacturing phase of electronic devices. recycling facilities can now focus more on extracting valuable materials from end-of-life products without having to deal with as much contamination from dirty production processes.
According to the BankMyCell 2024, iPhones retain trade-in value better than Android phones, losing ~40% in year 1 vs ~55%.
Recycling centres will also see an increase in demand for renewable energy solutions to power their operations as they process growing volumes of e-waste annually. The global generation of e-waste is estimated at 62 million tonnes per year. Yet only 22.3% is formally recycled worldwide (UN Global E-Waste Monitor 2024). By adopting greener production methods, SEVT demonstrates a commitment to sustainability that can inspire recycling facilities to do the same.
What Are the Environmental Benefits?
Adopting renewable energy directly through DPPAs significantly reduces greenhouse gas emissions and reliance on non-renewable resources. For instance, solar power plants generating electricity for Samsung's operations emit no carbon dioxide during production, contrasting sharply with coal-fired plants that release substantial amounts of CO2 (IPCC Report 2023).
According to the Royal Society of Chemistry, mobile phones contain up to 60 different elements, including critical raw materials.
the shift to renewables aids in preserving natural habitats affected by traditional mining practices used to extract raw materials like lithium and cobalt. At Samsung Electronics Vietnam Becomes First Company in Vietnam To Purchase Renewable Electricity Through DPPA, these metals are critical for battery production but often come at a heavy environmental cost when mined conventionally. By reducing demand for these resources through efficient energy use, companies help mitigate the negative impacts of resource extraction.
How Does This Impact Regulatory Compliance?
The adoption of renewable electricity aligns Samsung Electronics Vietnam with global and regional regulations aimed at curbing climate change and promoting sustainable practices. For example, the EU's Waste Electrical and Electronic Equipment (WEEE) Directive mandates a collection target of 65% for electronics placed on the market (EU WEEE Directive).
By securing long-term contracts for renewable energy through DPPAs, SEVT can more easily meet these regulatory requirements while also setting an example for other companies looking to improve their environmental credentials. This approach not only helps in complying with existing regulations but also positions them well ahead of potential future legislation that may enforce stricter emission standards.
What Can Consumers Do Now?
Consumers can support Samsung's initiative by choosing energy-efficient and sustainable electronic devices when making purchases. Additionally, recycling old electronics responsibly ensures valuable materials are recovered and reused rather than sent to landfills or incinerators. For more information on how to recycle electronics properly, visit our guide on e-waste.
advocating for policies that promote the circular economy and right-to-repair initiatives can further encourage manufacturers like SEVT to continue their sustainable practices. By participating in programs aimed at reducing e-waste generation and promoting urban mining (visit our page on urban mining), consumers play a important role in building a more environmentally friendly electronics industry.
In summary, Samsung Electronics Vietnam's adoption of renewable energy through DPPAs marks a key moment in sustainable manufacturing practices. This move not only benefits the environment but also sets an example for other companies to follow suit. For those interested in learning more about e-waste recycling and management. Our resources on e-waste provide valuable insights into best practices and innovative solutions.
Sources
- Apple Environmental Report 2024
- BankMyCell 2024
- Royal Society of Chemistry