Vietnam is taking major steps to avoid electricity shortages during the 2026 dry season as the country faces rising power demand and global energy challenges. Authorities are preparing several contingency plans to strengthen energy security and ensure a stable electricity supply for industries, businesses, and households.
One of the main concerns for the country is the increasing pressure from higher electricity consumption and uncertainties in global fuel imports. At the same time, weather forecasts linked to the El Niño phenomenon are expected to reduce water levels in hydropower reservoirs. Since hydropower contributes a large share of Vietnam’s electricity generation, lower reservoir levels could impact overall power supply during peak summer months.
To address these risks, Vietnam Electricity (EVN) has formed a special steering committee to monitor the situation and coordinate with market operators. The company is also preparing flexible operating plans to manage different supply and demand scenarios during the dry season.
Vietnam is also increasing its focus on renewable energy and energy storage solutions. EVN is promoting self-produced rooftop solar systems by simplifying registration procedures and proposing green financing support for consumers and businesses. The government believes rooftop solar can help reduce pressure on the national grid, especially during daytime peak demand hours.
Battery Energy Storage Systems (BESS) have become another important part of the country’s energy strategy. Authorities are encouraging several power companies to develop more than 1,000 MW of battery storage capacity. These systems are expected to improve grid stability and support renewable energy integration, which can sometimes create fluctuations in electricity supply.
Along with renewable expansion, Vietnam is accelerating major power infrastructure projects. The Vung Ang II thermal power plant has recently started commercial operations, adding around 1,300 MW of new electricity capacity to the national grid. Another major project, the Quang Trach I thermal power plant, is expected to begin operations by mid-2026. The government is also upgrading 500kV transmission lines and substations to improve electricity delivery to northern provinces, where shortages are more common.
Demand-side management is another key focus area. EVN aims to reduce national electricity consumption by 3% in 2026 and plans to achieve a 10% reduction during the high-demand months between April and July. Industrial parks are being encouraged to adjust production schedules, while authorities are considering changes to peak-hour electricity pricing to better manage energy usage.
Despite rising global LNG and coal prices caused by geopolitical tensions, officials believe Vietnam’s diversified fuel mix will help reduce risks. Through a combination of renewable energy development, grid upgrades, battery storage, and energy-saving measures, Vietnam is working to maintain a reliable power supply and support its economic growth and digital transformation plans.
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