Safeguarding Energy Security Amid Rising Demand, Climate Risks

Illustrative photo: Wind-power farm

Electricity demand reaches new highs

Energy demand, especially electricity consumption, is facing some of the greatest pressures in the history of Vietnam’s power system. Prolonged heat waves have disrupted daily life while placing significant strain on the national grid. According to Vietnam Electricity (EVN), total system peak capacity reached 57,189 MW on May 27, approximately 5% higher than the peak recorded in 2025. In Northern Vietnam alone, peak demand climbed to nearly 29,900 MW, an increase of more than 27% compared with the same period last year.

Commenting on the situation, Pham Viet Thach, Deputy Head of EVN’s Environment and Sustainable Development Department, said: “At a time when electricity demand is rising sharply, saving even 1 kWh of electricity helps reduce pressure to invest in additional power generation and transmission infrastructure, lowers the need to mobilize high-cost power sources, and contributes to the efficient use of the nation’s energy resources.”

According to Dang Hai Dung, Deputy Director General of the Agency for Innovation, Green Transition and Industry Promotion under the Ministry of Industry and Trade (MoIT), amid severe heat waves, using energy efficiently and economically is not only an urgent need for households and businesses but also an important solution for ensuring national energy security, reducing greenhouse gas emissions, and supporting sustainable development.

The challenge goes beyond short-term spikes in electricity demand and is closely tied to broader economic growth goals. “To achieve GDP growth of more than 10%, electricity demand must increase by at least 11% to 12%,” explained Nguyen Anh Tuan, Permanent Vice Chairman and Secretary General of the Vietnam Energy Association. Although the energy elasticity coefficient has improved, falling from 1.5 before 2020 to about 1.1 to 1.2 today due to more efficient technologies, electricity demand growth has recently remained below 9%, leaving the power system under significant pressure to support economic growth targets through the end of the year.

Challenges from limited supply

While electricity demand continues to rise rapidly, expanding supply remains challenging due to technical constraints and lengthy investment timelines. “Dispatchable power sources that can be adjusted as needed remain very limited,” said Nguyen Anh Tuan. Total additional capacity for 2026 is projected at only about 1,400 MW, far below the 6,000 MW to 7,000 MW typically needed each year to ensure safe system operation and adequate reserve capacity nationwide.

Hoang Viet Dung, a representative of the Agency for Innovation, Green Transition and Industry Promotion, also warned that climate change, including El Nino conditions and prolonged heat waves, poses risks to Vietnam’s energy supply and energy infrastructure.

Many see renewable energy as part of the solution, but experts urge caution. “Even with several hundred additional megawatts of wind and solar power, these sources cannot provide stable power around the clock and remain entirely dependent on weather conditions, meaning they cannot guarantee full system reliability throughout the year,” said Nguyen Anh Tuan.

According to Dang Hai Dung, to address these challenges, the Government and the Prime Minister have introduced a range of important policies and mechanisms to promote energy efficiency. These include the amended Law on Economical and Efficient Use of Energy, which took effect on January 1, 2026, as well as Directive 09/CT-TTg and Directive 10/CT-TTg issued by the Prime Minister. Together, these measures provide important guidance for society-wide efforts to promote efficient energy use and sustainable development.

Building a culture of efficient energy use

Addressing the energy security challenge requires not only expanding power supply through new generating capacity but also promoting more efficient electricity use. “Electricity conservation should be regarded as an ongoing management solution rather than merely a seasonal response during the summer,” Dang Hai Dung said.

For more than 3,000 major energy-consuming facilities nationwide, complying with legal requirements, strengthening energy audits, upgrading technology, and improving operational management can reduce production costs while easing pressure on the power system.

One encouraging development is the growing use of digital technologies and online platforms. The online competition “Learning About Energy Efficiency and Conservation 2026” is a good example. According to Dang Hai Dung, holding the competition online not only increases participation but also helps energy conservation messages reach a wider audience, especially young people, who play an important role in promoting green lifestyles.

For the 2030-2035 period, Nguyen Anh Tuan recommended that, alongside renewable energy development, Vietnam should prioritize dispatchable baseload power sources to strengthen energy security. As individuals and businesses adopt more efficient electricity use and combine these efforts with technology-based management solutions, broader system-wide improvements can be achieved. EVN has committed to working closely with MoIT and local authorities to expand demand-side management programs and provide tailored energy-saving solutions for customers.