Vietnam power demand expected to grow strongly

The warning was made by the National System and Market Operator (NSMO) at a technical workshop co-hosted with Germany's development agency GIZ.

Nguyen Quoc Trung, NSMO's deputy chief executive, said demand growth is being driven by economic expansion targets, while global energy market volatility is adding pressure on ensuring stable and secure supply.

He said the power system, particularly during dry-season months this year and in the coming years, could face capacity shortfalls at peak times.

Rooftop solar and battery energy storage systems (BESS) are being promoted to improve supply flexibility and support the integration of distributed energy.

Electricity companies are studying and deploying BESS solutions, which are expected to help absorb solar power and improve system responsiveness, Trung said.

On the demand side, officials said electricity consumption patterns are shifting, with the number of electric vehicles rising from more than 200,000 to nearly 350,000 within nine months after a government directive on pollution control.

The increase in electric vehicles is expected to affect load patterns and distribution networks, adding complexity to system operations.

Stronger coordination between transmission and distribution system operators is becoming increasingly necessary as both supply and demand evolve.

GIZ said the expansion of rooftop solar, energy storage, and electric vehicles requires more flexible system operation to maintain stability and reliability.

The workshop forms part of a German-funded project supporting Vietnam's energy transition and efforts to improve system coordination as new energy sources expand.