Vietnam's grid under pressure as heatwaves drive up electricity demand

Blistering heat pushes Vietnam’s power demand to record levels. (Photo: iStock)

A nationwide spike in electricity usage, driven by ongoing heatwaves in northern and central Vietnam, set a new all-time high on the afternoon of June 2. Prime Minister Pham Minh Chinh has issued an urgent directive to ensure stability and prevent disruptions to business and daily life.

Heatwaves drive power demand to new high

According to the National Center for Hydro-Meteorological Forecasting (NCHMF), cities including Hanoi have recently experienced temperatures reaching 40°C, meeting the official criteria for heatwave classification. This extreme heat has sharply increased electricity consumption across the country.

At around 1:40 PM on June 2, national power usage peaked at 51,672 MW—a historic high. The government highlighted the increasing unpredictability of weather due to climate change, which is making power supply management more difficult, especially in northern regions that face higher risks.

In response, Chinh instructed the Ministry of Industry and Trade and other relevant agencies to take immediate action to stabilize the national grid. He emphasized the importance of avoiding power shortages under any circumstances, particularly as Vietnam approaches the dry season when hydropower output typically declines.

Vietnam experienced severe power shortages during the summer of 2023, largely due to insufficient rainfall. The resulting outages forced factories and businesses to halt operations, with estimated economic losses reaching $1.4 billion USD. The situation also affected investor confidence, especially among foreign manufacturers.

Heatwave hits Vietnam, Pham Minh Chinh instructed relevant agencies to ensure stable power supply for the national grid. (Photo: MONRE)

Grid expansion, renewable imports from Laos on the agenda

The prime minister also pointed out the lack of flexibility in the current grid infrastructure and called for faster construction of two key 500 kV transmission lines in the north: Lao Cai–Vinh Yen and Hai Phong–Thai Binh. He has set an August deadline for completing critical components of these projects.

Expanding the grid also opens doors for new power sources. In central Vietnam, Quang Tri province recently approved a transmission line project that will start from Lao Bao, near the Laos border. Spanning roughly 34.6 kilometers, the new line is part of a broader plan to import renewable energy from Laos.

The project, estimated at 1.26 trillion VND (about 48.3 million USD), will be developed and built by the state-owned utility EVN. Construction is slated to begin in 2026, with commercial operation expected in the fourth quarter of 2027.

Source: Tuoi Tre News(1), (2), Bloomberg, VnExpress