 (Illustrative photo: congthuong.vn) |
Energy demand of the economy
Vietnam always makes energy security a top priority in its development strategy. The Vietnam Electricity Group (EVN) says Vietnam's electricity demand grew about 10% annually in the 2011-2020 period and is forecast to triple in the next 10 years. For every 1% economic growth, electricity consumption increases 1.5%.
In 2024, Vietnam didn’t lack electricity even though consumption increased about 11-13%. Electricity sufficiency has played an important role in attracting FDI during a period of global investment decline. Last year Vietnam's FDI disbursement was the highest in many years and GDP growth surpassed 7%.
It’s forecast that electricity production should increase at least 10% a year to meet public demand and reassure investors.
Securing sufficient energy
The latest National Assembly session voted to resume investment in the Ninh Thuan nuclear power plant after 8 years of suspension. Nuclear energy will help diversify Vietnam’s electricity supply, ensure energy security, further green energy transition, and help Vietnam honor its commitment at COP26 to zero emissions by 2050. The nuclear power project is also an opportunity to develop high-quality human resources, increase the nation’s technical capacity, participate in the global nuclear power industry, and master nuclear technology.
Party General Secretary To Lam said at a meeting of the Ninh Thuan provincial Party Committee last week: "The Party and State will select the best nuclear technologies and the best consulting partners and train the best personnel to ensure safe and effective operation of our national energy project.”
Electricity demand next year is forecast to increase 12-13%, equivalent to 2,200-2,500 MW. At a conference in Hanoi on December 8 to review investment and construction of Circuit-3, the 500 kV transmission line from Quang Trach in Quang Binh province to Pho Noi in Hung Yen province, Prime Minister Pham Minh Chinh said:
"If the economy grows by double digits, electricity growth must be 1.5 times higher. We are industrializing and modernizing the country, so we must create breakthroughs.We must apply innovative science and technology, such as artificial intelligence, cloud computing, and the Internet of Things to the electricity sector. We must continue to promote resilience and hard work. I expect that the results in 2025 will be higher than in 2024 and there will be no power shortages,” said Mr. Chinh.
In 2025, the Vietnam Electricity Group will accelerate investment and construction progress on the Hoa Binh Hydropower Plant expansion, the Quang Trach 1 Thermal Power Plant, and the 500 kV Lao Cai-Vinh Yen transmission line.
The Prime Minister has asked the Ministry of Industry and Trade, and related agencies to devise scenarios on supply sources, efficient distribution and use, and appropriate pricing to ensure energy sufficiency.
The Prime Minister specifically mentioned diversifying power sources, ensuring base power sources, shifting from coal power to clean energy, and honoring Vietnam's commitments at COP26, as well as renewable energy, power storage, offshore wind power projects, and resolve pending issues related to renewable power. Climate change and Vietnam’s increasing energy demand require a new energy structure that reduces dependence on fossil fuels.