Foxconn and Brookfield have announced a strategic partnership to develop up to 1GW of renewable energy and battery storage capacity in Vietnam, supporting the growing clean energy needs of manufacturing operations and supply chains in one of Asia’s fastest-growing industrial markets.
The partnership will invest in utility-scale wind, solar and battery energy storage projects backed by long-term power purchase agreements (PPAs), providing renewable electricity for Foxconn’s operations and its supplier network in Vietnam.
Supporting Manufacturing Decarbonisation
The agreement comes as manufacturers face increasing pressure to reduce carbon emissions and improve the sustainability of their operations.
Manufacturing accounts for a significant share of global energy consumption and carbon emissions, with Asia representing more than half of worldwide manufacturing activity.
Vietnam has emerged as a major manufacturing hub in recent years, attracting investment from global technology and electronics companies seeking to diversify production and strengthen supply chains.
Renewable Energy for Operations and Suppliers
Unlike many traditional corporate renewable energy agreements, the partnership is designed to support not only Foxconn’s own facilities but also its broader supplier ecosystem in Vietnam.
The companies said the initiative will provide long-term access to renewable energy for manufacturing operations while helping suppliers reduce their carbon footprint.
James Tu, chief investment officer of Foxconn, said the partnership supports the company’s long-term growth strategy in the region.
“We are pleased to be a strategic partner to Brookfield to secure long-term access to renewable energy for our operations and supply chain in Vietnam.”
“This initiative where we’re investing and managing alongside Brookfield ensures stable and cost-effective power supply for our continued growth in the region.”
Brookfield Investment Through Transition Fund
Brookfield will make its investment through its Catalytic Transition Fund, which focuses on accelerating clean energy deployment in emerging markets.
The fund is supported by US$1 billion of catalytic capital from ALTÉRRA and is structured to attract additional private investment into energy transition projects.
Brookfield said Vietnam has become an increasingly attractive market for renewable energy investment as corporate demand for clean power continues to grow.
Daniel Cheng, managing partner and head of energy for Asia-Pacific at Brookfield, said the project reflects broader regional trends.
“Brookfield’s partnership with Foxconn underscores the scale of corporate demand for renewable power in Vietnam, one of Asia’s fastest-growing economies.”
“As global manufacturers increasingly turn to renewables for its cost-competitiveness, speed to market and energy security benefits, we’re seeing strong and rising demand for long-term supply from across the region.”
Vietnam’s Evolving Energy Market
The development is expected to progress alongside Vietnam’s emerging direct power purchase agreement framework, which is designed to allow large electricity users to contract directly with renewable energy producers.
The framework is viewed as an important step in supporting large-scale renewable energy investment while helping industrial companies secure reliable and competitively priced clean power.
Vietnam has experienced growing electricity demand and periodic capacity constraints in recent years, increasing the need for new generation and energy storage infrastructure.
Expanding Clean Energy Capacity
For Brookfield, the agreement expands its renewable energy portfolio and strengthens its presence in Southeast Asia’s energy transition market.
For Foxconn, the partnership represents a significant move toward increasing renewable energy use across its operations and supply chain, supporting broader sustainability objectives while enhancing long-term energy security.
The companies did not disclose a timeline for the deployment of the full 1GW portfolio, but said the projects will contribute to Vietnam’s renewable energy growth and support the country’s transition toward a lower-carbon industrial economy.
Source: EnergyMagz