Guaranteeing sufficient electricity supply for economic expansion and development

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Let's talk about the Ministry of Industry and Trade's plan to ensure a stable and sufficient electricity supply for Viêt Nam's 8% GDP growth target in 2025.

There's a whole lot happening brought on by the Prime Minister's directive! The ministry has been revising policies to attract investment in electricity infrastructure, aiming to meet a 12% increase in electricity demand aligned with an 8% economic growth forecast.

To put this into action, they've got a solid strategy:

Maintaining top-notch maintenance and high operational readiness across power plants.
Securing stable fuel supplies from various sources – coal, oil, gas, and more.
Speeding up critical power generation and transmission projects.
Optimizing resource mobilization.
Encouraging electricity savings and reducing peak-time consumption.

According to Deputy Director of the Electricity Department, Đoàn Ngọc Dương, in the first four months of 2025, electricity supply was stable, even during peak demand periods. But, hey, who knows what unexpected risks could crop up - like an unexpected drought, heatwave, or equipment failure, which could stress the power system.

To prepare for these possibilities, the ministry is cooking up contingency plans to ensure national energy security. And 2025 is shaping up to be a vital year; it's identified as the year of "acceleration and breakthrough" to establish the foundation for consistent double-digit growth from 2026 to 2031!

Upgrading energy supply is increasingly essential for economic development, and Phan Đức Hiếu emphasizes that electricity isn't just a commodity; it's a fundamental input that drives all other sectors of the economy. As demand rises and presents the dual challenge of ensuring energy security and quality assurance, electricity pricing mechanisms must adapt accordingly.

Now, experts have suggested that a sustainable electricity supply largely depends on addressing longstanding issues within the pricing structure. Nguyễn Tiến Thỏa pointed out three main shortcomings, including a failing market-based pricing system, incomplete accounting of input costs, and the persistence of a pricing model that involves buying electricity at a high price and selling it at a lower one [1][2][3].

Thỏa advocated for a comprehensive electricity pricing reform to align with market principles, such as phasing out cross-subsidy in electricity prices and reflecting regional cost differences. Hà Đăng Sơn further emphasized that, while Việt Nam's electricity prices are comparable to those of China and India, they remain lower than those in Thailand and Singapore. Sơn pointed out that neighboring countries also face the challenge of ensuring an adequate electricity supply at reasonable prices, transitioning to green energy [4].

Balancing pricing strategy is crucial to steer clear of shocks and attract private investment in power generation, while ensuring transparency and stability remains the guiding principle of any electricity pricing mechanism. Both transparency and stability are vital for investor confidence and long-term policy effectiveness.

As businesses are taking steps to support the national energy strategy, many companies are gradually shifting to green and solar energy sources. This move not only reduces pressure on the national grid but also enhances operational autonomy - yep, that's what Nguyễn Văn Đạt, deputy director of the Thái Nguyên Electrolytic Zinc Plant, meant when he shared that businesses are taking steps to support the national energy strategy [5].

This article provides a quick rundown of measures the Ministry of Industry and Trade is taking to ensure a stable and sufficient electricity supply for Viêt Nam's economic growth, including implementing market-based pricing for solar power, hydropower, and gas power; promoting renewable energy development, and ensuring a balanced national electricity development plan to achieve a sustainable electricity supply.

A 110 kV transformer station in Thanh Hóa Province. Ministry of Industry and Trade has a comprehensive plan to supply enough electricity for the country.- VNA/VNS Photo

Insights from the Enrichment Data:- Solar Power: The ministry is setting a power generation price framework for solar power plants, with rates reaching up to $0.07/kWh to incentivize the development of renewable energy, particularly solar power.- Hydropower and Gas Power: Decision No. 982/QĐ-BCT and No. 983/QĐ-BCT have established price frameworks for hydropower and gas turbine thermal power plants, respectively, to create a competitive environment for various energy sources.- National Electricity Development Plan: The plan focuses on renewable energy development, power export, and power capacity. By 2035, Vietnam aims to export 5,000–10,000 MW of electricity to neighboring countries and has set a target total power capacity of 183,291–236,363 MW by 2030 [5].- Energy Mix and Efficiency: The ministry is promoting a balanced energy mix, ensuring energy security and reducing reliance on imported fuels. Efforts are also being made to enhance energy efficiency across industries [2].

The Ministry of Industry and Trade's plans for a stable electricity supply in Việt Nam align with a 12% increase in electricity demand and an 8% economic growth target by 2025.
In the face of potential risks such as droughts, heatwaves, or equipment failure, the ministry is devising contingency plans to maintain national energy security.
The ministry's strategy includes maintaining operational readiness across power plants, securing diverse fuel supplies, accelerating critical power projects, optimizing resource mobilization, and encouraging electricity savings.
Following the ministry's efforts, electricity supply has remained stable in the first four months of 2025, but the need for energy security and quality assurance persists.
To address longstanding pricing issues, experts advocate for a comprehensive electricity pricing reform, aligning with market principles and reflecting regional cost differences.
Transparency and stability in electricity pricing are crucial to attract private investment in power generation and foster long-term policy effectiveness.
The ministry's initiatives encompass implementing market-based pricing for solar, hydro, and gas power, promoting renewable energy development, and balancing the national electricity development plan to achieve a sustainable supply.
In line with the national energy strategy, businesses are gradually transitioning to green and solar energy sources, reducing pressure on the national grid and enhancing operational autonomy.

Guaranteeing sufficient electricity supply for economic expansion and development