Vietnamese Prime Minister Pham Minh Chinh has instructed government agencies to guarantee uninterrupted power supplies, especially as heat waves are boosting electricity demand, according to the Financial Post and Bloomberg.
This directive aims to prevent power shortages, particularly during the dry season and peak demand periods. The actions are part of broader efforts to ensure energy security and meet the growing demands of the Vietnamese economy and population.
The PM emphasized the need for efficient power use and has urged relevant ministries and agencies to implement measures to ensure adequate electricity supply, including accelerating new power plant startups and grid connections.
The directive also highlights the importance of ensuring the safe operation of the electricity system during the dry season, which is crucial for maintaining a reliable power supply.
The circumstance follows reports last month regarding Vietnam’s state power utility reducing previously promised subsidized FiT rates for several solar and wind projects, prompting warnings from investors that billions of dollars are at risk as projects struggle to make debt payments and face potential default.
The unilateral tariff change, applied by a subsidiary of Electricity of Vietnam (EVN) since January 2025, has caused major cash flow challenges and breached loan agreements, according to a petition signed by 16 foreign investors and multiple local developers.
This move threatens Vietnam’s renewables expansion, which was initially spurred by generous long-term feed-in tariffs, and leaves uncertainty over which projects are affected or whether the rules are being applied retroactively.
Lower subsidized rates could potentially generate substantial strains on factories in the southern region of Vietnam, where curtailment has already been common.
While some companies can offset risks if only a portion of their facilities are impacted, those with all their sites exposed to curtailment may face sharper cash flow pressures, reducing their capacity to reinvest or expand operations.
