Vietnam is grappling with a complex energy landscape as it seeks to balance its ambitions for greener power generation with the immediate need to avert crippling blackouts. The country’s state-run electricity provider, EVN, is leading by example, with its headquarters in Hanoi turning off lights and air conditioning in an effort to conserve power. However, the wider business community appears to be ignoring the call, keeping decorative neon lights on throughout the night.
The challenges facing Vietnam highlight the difficulties in curtailing power consumption, a year after sudden outages caused hundreds of millions of dollars in losses to multinational manufacturers with investments in the Southeast Asian country.
To address the issue, Vietnam is pursuing a multifaceted approach, including energy-saving measures, grid upgrades, regulatory reforms, and a significant increase in coal power generation. The government is investing in a new $1 billion transmission line to connect the center of the country to the highly industrialized north, which was hit hard by blackouts last year. However, EVN’s communications director, Trinh Mai Phuong, acknowledges that even this major infrastructure project may not be a “game changer” on its own, as multiple issues need to be addressed.
Power consumption in Vietnam is expected to reach record highs in the coming weeks as the country braces for more heatwaves, further exacerbating the challenges. The soaring demand is making it increasingly difficult for Vietnam to meet its climate change commitments while ensuring sufficient power supply for large investors, such as Samsung Electronics, Foxconn, and Canon.
Broader sector-wide reforms are necessary in the longer term, according to foreign investors and analysts. The delicate balance between Vietnam’s green power ambitions and the immediate need to avoid blackouts requires a comprehensive and coordinated approach to ensure the country’s energy security and sustainable development.