A growing number of businesses in Da Nang are installing rooftop solar systems to power operations and export surplus electricity to Vietnam Electricity Group (EVN), aligning with clean energy goals and responding to global climate trade policies. However, they face a critical challenge: the absence of government-issued renewable energy certificates (RECs), which hinders their ability to prove clean energy use to international buyers and avoid carbon tariffs.

Enterprises exporting to Europe and other developed markets have emphasized the need for official certification to validate the use of non-fossil energy in their production. They argue that such documentation is essential to meet environmental standards imposed by foreign trading partners and avoid carbon border adjustment taxes.

Business leaders have urged the city’s departments and agencies to establish a mechanism for certifying products made using clean or renewable energy. In particular, they have called for the issuance of RECs that can facilitate direct transactions with clean energy-conscious partners in both domestic and international markets.

Tran Huynh Vuong Hoai Vu, Deputy Head of the Energy Management Department under the Da Nang Department of Industry and Trade, acknowledged the issue. He noted that while there is currently no official REC standard in Vietnam, some organizations are offering International REC (I-REC) certifications under global frameworks. These are being used on a voluntary basis by Vietnamese firms to demonstrate their renewable energy use.

To address the demand, the Ministry of Industry and Trade has submitted a proposal to the central government outlining the development of a national REC market. The proposed market would allow clean energy producers and buyers to trade certificates in a regulated and transparent environment, enhancing Vietnam’s competitiveness in sustainable exports.

Currently, Da Nang has 38 renewable energy producers with a collective monthly output exceeding 20,000 kWh. These entities are eligible for direct electricity trading agreements with major consumers, provided they can prove renewable energy integration in their production.

Wasted Potential Amid Grid Constraints

Despite these efforts, businesses report significant energy waste due to infrastructure limitations. Rooftop solar producers often face curtailment — a reduction in energy fed to the national grid — during peak solar hours. This, they say, undermines the full utilization of green energy assets.

To tackle this, enterprises are advocating for government support in investing in battery storage systems that can store excess solar energy during the day and release it during peak demand periods at night. They also call for expedited policy reforms to expand Vietnam’s rooftop solar program.

Da Nang’s Green Vision to 2045

Under its urban power development plan through 2030 and vision to 2045, Da Nang aims to promote diversified renewable energy sources. The city’s strategy includes:

• Rooftop solar for self-consumption (unlimited capacity).
• Waste-to-energy projects with a 1,000 tons/day treatment capacity (expected 18–30 MW output).
• Biomass power in Lien Chieu Industrial Park (approx. 15 MW).
• Exploration of gas-fired power with defense and energy security considerations.

As of now, Da Nang has connected 2,510 rooftop solar customers to the national grid with a total installed capacity of 81.49 MWp. However, only a fraction of the city’s 80 MW rooftop solar capacity allocation has been licensed, signaling untapped potential for expansion.

“The policy framework must catch up with market demand,” said Mr. Vu. “There’s enormous opportunity to scale rooftop solar, but without certification and proper infrastructure, businesses are left in limbo.”