Agencies have been instructed to base their management of electricity pricing on functions, responsibilities, and authority, ensuring adjustments follow a gradual and appropriate roadmap without abrupt changes.

The Government Office recently issued Notice No. 500/TB-VPCP on the conclusions of a Government Standing Committee meeting regarding the implementation of key projects by the Vietnam Electricity Group (EVN) and the Vietnam Oil and Gas Group (PVN) to ensure sufficient power supply and energy security.

With projected economic growth of 7% in 2025, electricity demand is expected to increase by 12-13% to support business, production, and daily life. According to reports, an additional 2,297 MW in capacity is needed to meet this demand.

Based on this forecast, Prime Minister has ordered that electricity shortages must be avoided in 2025. Solutions must be implemented to offset potential power capacity shortfalls.

The Prime Minister specifically called for the effective implementation of Decree No. 80/2024/ND-CP dated July 3, 2024, which regulates the mechanism for direct power purchase agreements between renewable energy generators and major electricity consumers.

The Ministry of Industry and Trade has been tasked with negotiating a five-year agreement to purchase electricity from Laos and adjusting import prices accordingly. Additionally, the ministry is considering increased electricity imports from China to bolster the system if needed.

The ministry has also been directed to shift from coal to gas-based power generation, diversify energy sources, and continue exploring nuclear energy development.

Emphasis is placed on clean energy initiatives that contribute to climate action, the green transition, digital transformation, and circular economy goals, such as rooftop solar, wind power, and waste-to-energy.

For hydropower, the Ministry of Industry and Trade will work with the Ministry of Agriculture and Rural Development to create a water management plan that balances agricultural needs with water storage for power generation during the dry season in northern Vietnam.

In terms of gas-based electricity, pricing strategies should align with market conditions and national needs, balancing interests to encourage investment and ensure project feasibility.

The Ministry of Industry and Trade, Ministry of Finance, the State Capital Management Committee, and EVN are responsible for managing electricity prices in a way that avoids abrupt adjustments.

The power sector must focus on cost-saving, advancing digital transformation, enhancing competitiveness, and reducing expenses. Electricity prices should reflect the broader economy, with state oversight to maintain macroeconomic stability.

Luong Bang