Vietnam’s power sector is intensifying preparations to mitigate the risk of a potential power shortage during the 2026 dry season as electricity demand continues to rise alongside ongoing uncertainty in global energy markets. Authorities and industry participants are introducing a broad mix of operational and infrastructure measures aimed at safeguarding electricity supply stability during periods of peak consumption. These efforts include strengthening system operations, increasing supply flexibility, encouraging electricity conservation, and accelerating the deployment of battery energy storage systems (BESS). The possibility of a power shortage has become a central concern for policymakers and utilities as demand growth combines with external fuel market pressures and weather-related risks.
According to Nguyen Manh Quang, deputy head of the Business and Power Purchase Department under the Vietnam Electricity (EVN), the national power system has faced “dual pressure” since the beginning of 2026 because of rapidly increasing electricity demand and geopolitical developments affecting imported fuel supplies. The forecast impact of the El Nino phenomenon is also expected to reduce water inflows into hydropower reservoirs, creating additional strain on electricity generation capacity. In response, EVN has implemented measures aligned with Resolution No. 70-NQ/TW of the Politburo and Directive No. 10/CT-TTg of the Prime Minister. The utility has formed a steering committee dedicated to electricity supply management for 2026 while coordinating with the National System and Market Operator (NSMO) to create flexible operating scenarios designed to maintain energy security and avoid a power shortage situation during the dry season.
Among EVN’s major priorities is the expansion of self-produced and self-consumed rooftop solar power. Power corporations have introduced online registration systems through websites and customer service applications to simplify customer participation. EVN has additionally proposed a “one-stop-shop” mechanism to streamline investment procedures while also recommending green credit policies and preferential financing support. Alongside rooftop solar development, EVN is pushing forward electricity-saving programmes and demand response (DR) initiatives. The utility aims to save 3% of total electricity consumption in 2026 while targeting a reduction of around 10% during the peak dry-season period between April and July. Industrial parks and businesses are being encouraged to shift operating schedules away from peak hours to help ease pressure on the grid and reduce the likelihood of a power shortage.
EVN is also studying adjustments to peak-hour electricity pricing, including extending the peak pricing window from 6:30 p.m. to 10:30 p.m. to better align with current consumption patterns. At the same time, the company is evaluating additional incentives for customers participating in demand response programmes. As renewable energy contributes a growing share of Vietnam’s electricity mix, battery energy storage systems are increasingly viewed as critical to improving grid stability. EVN has tasked the Northern Power Corporation (EVNNPC) with developing 530 MW of BESS capacity, while the Hanoi Power Corporation (EVNHANOI) is assigned 275 MW and the National Power Transmission Corporation (EVNNPT) approximately 300 MW. These projects are expected to support transmission flexibility and ease grid pressure during peak demand periods.
Nguyen The Huu, Deputy Director of the Electricity Authority under the Ministry of Industry and Trade, said the ministry approved the national power system operation plan for 2026 in late 2025. Under the base scenario, electricity demand growth is projected at around 8.5%, although an extreme dry-season scenario could see growth rise to 14.1%. To address these risks, the ministry is prioritising efficient use of all available power sources, especially hydropower. Reservoirs in northern Vietnam are maintaining elevated water levels ahead of peak dry-season demand. Authorities are simultaneously working to strengthen fuel supply for gas-fired thermal plants and accelerate major generation and transmission projects. The Vung Ang II thermal power plant has entered commercial operation, contributing around 1,300 MW to the national grid, while upgrades at several 500kV substations, including Pho Noi, Lai Chau and Hoa Binh, are intended to improve electricity transmission to northern regions.
The ministry has also directed power producers to maintain strict maintenance schedules to maximise generating unit availability while continuing the rollout of BESS, rooftop solar systems and demand-side management initiatives. Authorities noted that tensions in the Middle East have affected global LNG supply and prices and indirectly influenced coal markets through rising transportation costs. However, officials stated the impact on Vietnam remains limited because imported LNG still accounts for a relatively small proportion of the country’s power generation fuel mix. Regarding coal supply, relevant agencies have been instructed to diversify suppliers, increase reserves and strengthen domestic mining capacity to ensure uninterrupted fuel availability for power generation.
By the end of the first quarter of 2026, renewable energy sources including wind, solar and biomass represented approximately 26% of Vietnam’s installed power capacity. Despite this progress, these resources remain highly dependent on weather conditions, prompting authorities to view pumped-storage hydropower and energy storage systems as essential for improving power regulation and renewable energy optimisation. EVN also warned that pressure on electricity supply is expected to increase during the second quarter of 2026 due to hotter weather, industrial recovery, the expansion of artificial intelligence and digital transformation, and rising electric vehicle adoption.
To maintain system reliability, EVN has instructed generating units to secure adequate fuel supplies, maintain generating unit availability according to NSMO requirements, and operate hydropower reservoirs flexibly to balance agricultural water needs with electricity generation. EVNNPT is focusing on equipment maintenance, accelerating BESS installation and ensuring safe transmission operations, particularly in northern Vietnam. Meanwhile, EVN is expediting several major projects, including the Quang Trach I thermal power plant, which is expected to connect its first unit to the national grid in April 2026 and begin commercial operation in May 2026. Development work is also progressing on the Quang Trach II and III LNG power plants, the expanded Tri An hydropower plant and the Bac Ai pumped-storage hydropower project.
Several urgent transmission projects are also scheduled for completion during the second quarter of 2026, including the 500/220kV Nho Quan – Phu Ly – Thuong Tin transmission line, the 220kV Nhon Trach 3 power plant – Long Thanh line, the 220kV West Hanoi – Thanh Xuan line, the 220kV Dai Mo substation, and 110kV transmission lines supplying power to Phu Quoc ahead of APEC-related activities. Through coordinated efforts across power generation, transmission, electricity conservation, energy storage and demand management, Vietnam’s power sector aims to maintain energy security, fight power shortage and support socio-economic development despite continuing volatility in the global energy market.
