On March 19, USAID and the Clean Energy Investment Accelerator jointly organized the fourth Renewable Energy Buyers Alliance (REBA) Vietnam meeting in Ho Chi Minh City. The Clean Energy Investment Accelerator is a public-private partnership initiative that addresses barriers to scale clean energy deployment in developing countries, including Vietnam. The event attracted more than 100 private sector participants, and included an update on USAID’s work with the Ministry of Industry and Trade (MOIT) to develop and pilot a renewable energy (RE) direct power purchase agreement (DPPA) mechanism. The  DPPA mechanism will allow large power consumers (e.g., Nike, ABB, Heineken, Apple) to contract with RE developers to support new RE power generation in Vietnam. Private firms will be able to craft agreements with terms and conditions attractive to international investment and the Government of Vietnam will benefit from new “home grown” sources of clean energy, financed through private sector investments. With USAID’s continued support, MOIT plans to launch its DPPA pilot program in 2019.

So What? A viable RE DPPA mechanism will create a new pathway for private investments to expand Vietnam’s fledgling clean power sector. Modern, clean energy technologies are critical for Vietnam to sustain its impressive economic growth and protect human health and the environment.