[March 31st] No electricity shortage this year, deputy minister promises

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan has allayed apprehensions of a power shortage in the north this year caused by last year’s deficits.

In the second half of May and early June last year the region experienced shortages, which disrupted the operations of businesses. Some industrial parks resorted to load shedding once or twice a week.

Speaking at his ministry’s regular press briefing on March 29, Tan said: “There will be no repeat of the electricity shortages experienced in 2023, and we can guarantee reliable power supply in the years to come.”

The ministry has formulated improved strategies to secure raw materials and fuel for electricity generation, including specific plans tailored for the dry season.

At a meeting with Prime Minister Pham Minh Chinh on March 19 foreign business executives based in Vietnam highlighted the severity of the shortages and exhorted the government to ensure power supply is stable.

Electricity Vietnam (EVN) has indicated it will ramp up the utilization of high-cost electricity sources and renewable energy to avert any shortfalls this year.

It plans to increase coal power purchases by 145%, wind power by 25% and solar power by 19% from last year.

According to ministry data, electricity production rose by 11.97% in the first quarter of this year, exceeding expectations.

But the widespread and intense heat linked to the El Niño phenomenon could strain electricity supply in the months ahead.

To ensure adequate supply, the ministry emphasized the need for completing power plant and grid projects, including a 500-kV transmission line connecting the central province of Quang Binh and northern province of Hung Yen.

Furthermore, the ministry intends to encourage investment in renewable energy and expedite the implementation of the Direct Power Purchase Agreement mechanism.

Source: VN Express