Prime Minister requires that power shortage would be not tolerated until 2025 - Photo: VGP/Nhat Bac

Electricity demand increases by at least 10% per year

Directing at the meeting, Prime Minister Pham Minh Chinh said that according to estimation, for every 1% of economic growth, electricity demand must grow by 1.5%. In 2024, Vietnam strives for an economic growth of over 7% and to meet growth targets for the coming years, electricity demand will increase by at least 10%.

According to Vietnam Electricity (EVN), in the first 9 months of 2024, EVN has ensured sufficient power supply to serve socio-economic development and people's daily needs, with total power production and import reaching 232.8 billion kWh, increasing nearly 11%; power sales of more than 208 billion kWh, increasing by more than 11%.

EVN keeps on effectively implementing the tasks and solutions assigned by the Prime Minister to ensure adequate power supply in the last months of 2024, with power production and consumption estimated at more than 77 billion kWh; and power sales estimated to reach 67.7 billion kWh.

Based on projections, with the Government's drastic directions and proactive and far-seeing solutions, the power supply in 2025 will be basically met. However, there are still potential risks in the Northern region during the peak of the late dry season if power demand increases sharply.

Prime Minister directs that Decree on mechanisms and policies to encourage rooftop solar power development must be issued today (October 19) - Photo: VGP/Nhat Bac

Fulfilling the commitment to no power shortage

Concluding the meeting, Prime Minister Pham Minh Chinh stated that, in fulfilling the commitment to ensure power supply, up to this point, we can affirm that there will be no power shortage in 2024 even though consumption will increase by about 11-13% compared to 2023. Ensuring enough electricity is very important to attract FDI investment in the context of declining global investment. In the first 9 months of the year, Vietnam disbursed USD 17 billion of FDI capital, the highest in many years.

In 2025, according to reports, with electricity demand increasing by about 12-13%, around 2,200 - 2,500MW of capacity must be added. According to the Prime Minister, this requirement is not challenging, therefore he required no power shortage in 2025 with specific solutions.

Accordingly, urgently and effectively implementing the Decree on the DPPA mechanism issued by the Government; today (October 19), a Decree on the mechanism and policies to encourage the development of rooftop solar power must be issued.

The Prime Minister required relevant organizations to ensure sufficient fuel (coal, gas) for power generation according to system demand; in which, domestic coal exploitation should be promoted with a long-term plan, while studying the import of coal from Laos, reducing imports from other sources.

EVN’s President and CEO Nguyen Anh Tuan speaking at meeting - Photo: VGP/Nhat Bac

The Prime Minister also directed measures to import electricity from Laos and China, and to accelerate the completion of power transmission lines from Laos and China, of which the 500kV Lao Cai - Vinh Yen transmission line must be completed within 6 months, and the 220kV Nam Sum - Nong Cong transmission line must be completed in 2024.

For the period 2026-2030, the Prime Minister required the Ministry of Industry and Trade, the Commission for Management of State Capital at Enterprises, groups, and corporations, based on the estimated increase in electricity demand of about 12-14% to develop and implement scenarios on power generation, power transmission, power distribution, economical and efficient use of electricity and appropriate electricity prices, with the goal of not tolerating power shortage under any circumstances.

In particular, the Prime Minister noted a number of specific issues related to diversifying the power generation mix, ensuring base-load power sources, gradually shifting from coal-fired thermal power to clean power generation, and implementing Vietnam's commitments at COP26.

Along with that, forming and developing the renewable energy industry, actively developing power storage systems, developing offshore wind power projects, and overcoming and handling problems related to renewable energy projects that are facing difficulties.

PVN’s Chairman Le Manh Hung speaking at meeting - Photo: VGP/Nhat Bac

Regarding hydropower, the Prime Minister required that reservoirs be regulated to harmonize irrigation needs and power generation for the peak dry season in the North.

Regarding gas power, the Prime Minister required relevant organizations to receive the first gas flow from the Block B - O Mon gas project by the end of 2026; calculating gas power prices in accordance with the market and specific situations, "harmonized benefits, shared risks", harmonizing interests among the State, businesses, and people.

The Prime Minister also required relevant agencies to study the development of nuclear power; further complete regulations and institutions, and update and revise the PDP VIII.

The Prime Minister believed that with synchronous solutions, and innovative, positive, proactive, and creative approaches of relevant entities, the following goals will be simultaneously achieved: Ensuring sufficient electricity to meet economic growth needs in the 2026-2030 period and the following years; promoting green transformation, digital transformation, resolutely and drastically switching to clean electricity, contributing to responding to climate change; and ensuring proper electricity prices in line with the economy’s conditions, incomes and affordability of businesses and people.

Translator: Vân Ly