HCMC – LEGO Manufacturing Vietnam has signed a direct power purchase agreement (DPPA) with Vietnam-Singapore Industrial Park (VSIP) as part of its ambition to operate the new factory on 100% renewable energy.
The agreement is for the first large-scale renewable energy solution specifically designed for industrial use in Vietnam.
Under the agreement, renewable electricity generated from VSIP’s large-scale solar panels will be supplied to the factory through an industrial battery energy storage system, enabling a stable and consistent renewable electricity supply.
The supply of sustainable energy from the agreement is expected to help LEGO Manufacturing Vietnam reduce around 15,000 tons of CO2e each year and is expected to begin by early 2026.
This solution comes in addition to the 12,400 rooftop solar panels already installed on the factory’s buildings, which together will cover about 75% of the factory’s total energy demand for the first five years.
Additional off-site power purchase agreements are also in progress to support the transition to 100% renewable energy.
Jesper Hassellund Mikkelsen, senior vice president of Asia Operations and General Manager of LEGO Manufacturing Vietnam, said: “This is an important step forward in our ambition to operate the factory on renewable energy. We are proud to be one of the first companies to sign a DPPA and appreciate the support of the national and provincial authorities in creating this opportunity.”
Nguyen Phu Thinh, general director, VSIP J.V. Co. said: “The agreement reflects a shared commitment to accelerate the transition to renewable energy and sets a new benchmark for low-carbon manufacturing in Vietnam. By integrating rooftop solar and battery energy storage, we are demonstrating how industrial parks can lead the way in delivering reliable low-carbon solutions.”
