No power shortages in 2025 under any circumstances: Vietnam Prime Minister

Relevant agencies must prepare scenarios for power sources, electricity load and power distribution in order to ensure there are no power shortages in 2025 under any circumstances, says Prime Minister Pham Minh Chinh.

Chairing a Saturday meeting of permanent cabinet members and ministerial officials, the PM stressed that for every 1% increase in economic growth, electricity demand rises by 1.5%. As Vietnam is targeting growth of around 7% in 2024 and higher in subsequent years, electricity demand is expected to grow by at least 10%.

Recalling that electricity shortages in some northern Vietnam localities last year affected production and people’s lives, as also undermined investors’ trust, the PM underscored the need for early preparations to ensure sufficient supply and maintain national energy security.

He said the task assumed greater importance as Vietnam advanced its industrialization and modernization agenda. The country’s electricity demand is expected to increase by around 2,200 megawatts by 2025, but with specific measures in place, no major shortages are anticipated, he added

In the long term, with electricity demand rising by 12-15% annually, ministries and sectors need to proactively implement measures to ensure sufficient power supply for both production and consumption from 2026 to 2030, he stressed.

Chinh also requested urgent implementation of the decree on direct power purchase agreements (DPPAs) and prompt submission of a decree on self-produced, self-consumed rooftop solar energy for approval. These measures aim to promote and foster clean and renewable energy, he said.

The PM noted the supply of adequate fuels such as coal and gas should be ensured for electricity production with needed measures including increasing domestic coal mining with a long-term plan.

He also asked for measures to import more electricity from Laos and China. The construction of power transmission lines from the two neighbours must be expedited, with the 500 kV Lao Cai-Vinh Yen (Vinh Phuc province) line to be completed within six months and the 220 kV Nam Sum-Nong Cong (Thanh Hoa province) line to be finished later this year.

Chinh ordered relevant ministries and agencies to quickly finetune institutions and legal regulations, especially the revised Law on Electricity, to submit to the National Assembly at its upcoming session, while updating the National Power Development Plan VIII (PDP VIII).

“It is necessary to diversify electricity sources, ensure availability of base-load power and gradually transition from coal-fired power to clean energy in line with Vietnam's commitments made at the 26th UN Climate Change Conference (COP26) in Glasgow in 2021,” Chinh said.

The PM highlighted the importance of developing the renewable energy sector, building energy storage systems, advancing offshore wind projects, and addressing problems facing renewable energy projects.

According to state utility Vietnam Electricity (EVN), the group ensured sufficient electricity supply for socio-economic development in the first nine months of 2024. Production and imports reached 232.8 billion kWh and commercial electricity surpassed 208 billion kWh, both up 11% year-on-year.

EVN officials said they would continue effectively executing tasks and solutions assigned by the prime minister to ensure sufficient electricity supply in the last months of 2024, with production and imports expected to exceed 77 billion kWh, and commercial electricity estimated at 67.7 billion kWh.