Vietnam is urging coal miners to maximize production ahead of the upcoming hot summer, one of the emerging nations seeking fossil fuels to meet rising electricity demand, Bloomberg reported.
The need for coal-fired power generation in Vietnam is surging amid weaker hydropower output, especially in the northern regions, the government said in a statement on April 23. Prime Minister Pham Minh Chinh asked local producers to enhance their exploration capacity.
Vietnam, heavily reliant on coal for its energy needs, is now trying to avoid a repeat of last year's power shortage. Last summer, the country experienced electricity shortages due to insufficient fuel and hot weather, with the northern provinces, home to industrial parks, being particularly affected.
In April, temperatures in some areas have reached 40.4 Celsius degrees, the highest for the month since 2016, according to the national weather agency. Meanwhile, some water reservoirs have fallen to 25% of the seasonal average, which may limit its power generation in the peak demand season.
The hot weather will boost Vietnam's electricity demand to increase 13% from a year earlier in May-July, up from a previous estimate of less than 10%. The government has already asked manufacturers and households to put in place power-saving measures and curb consumption during peak hours.
Driven by the hot weather, Vietnam's electricity demand is expected to grow by 13% year on year over May-July this year, up from a previous estimate of less than 10%. The government has taken power-saving measures in manufacturing and households to limit power consumption during peak periods.
Vietnam is also seeking assistance from China to address a portion of the shortfall. According to local media, Vietnam Electricity Group will increase electricity imports from its neighbor by about 60% more than originally planned.
Vietnam has been importing liquefied natural gas since 2023, and is working to ensure the supply of imported gas even after the recent price increase.
(Writing by Harry Huo Editing by Riley Liang)
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