Vietnam is facing a challenge of how to power its rapidly growing economy in a safe and secure way. On April 12, USAID’s Vietnam Low Emission Energy Program participated in a meeting in Ho Chi Minh City to explore innovative approaches to simplify and expand access to renewable energy in Vietnam. It was attended by senior representatives of global corporations that are active in Vietnam, such as Puma, Heineken, and H&M, as well as leading energy companies and investors, such as Bamboo Capital and Dragon Capital. The meeting was organized by the Renewable Energy Buyers Alliance (REBA), a coalition of more than 100 large corporations committed to powering their operations and supply chains with renewable energy. Participants provided helpful feedback to introduce a viable Direct Power Purchase Agreement (DPPA) mechanism in Vietnam, which allows businesses to procure electricity directly from private firms producing renewable energy.

So What? USAID is working with public and private sector partners to achieve cost-effective and climate smart development in Vietnam. The DPPA mechanism promises to create a new pathway for significant new clean energy investments in Vietnam, helping to improve environmental quality and strengthen energy security.