Close public-private partnership to solve power supply problems

The Energy and Electricity Working Group believes that close dialogue and cooperation between the public and private sectors is necessary to effectively address the current electricity supply problem.

The Energy and Electricity Working Group of the Vietnam Business Forum (VBF) has made recommendations to the Government and relevant agencies on solutions to effectively address the issue of electricity supply.

According to the Energy and Power Working Group, there is currently a gap of about 4.35 GW between supply and demand, especially in the northern region. This year, the increasingly severe weather conditions have made it more difficult to supply electricity during the dry season, placing a burden on industrial production and posing a major challenge to businesses.

The Energy and Power Working Group expressed its appreciation for the efforts of the Government of Vietnam, in particular the Ministry of Industry and Trade, the Electricity Regulatory Authority of Vietnam and Vietnam Electricity (EVN), in ensuring a stable power supply for the people and supporting production activities for businesses in recent months. The policies put in place by the Ministry of Industry and Trade and Vietnam Electricity (EVN), including energy efficiency programs and encouraging voluntary demand response from high energy consumers, represent a proactive approach to mitigating the impact of power shortages.

However, the Energy and Power Working Group said that the power shortage has had a profound impact on private sector businesses, especially industrial customers. "Stable and uninterrupted power supply is a necessary pathway for businesses to maintain operations, ensure productivity and contribute to the overall economic development of the country. Unfortunately, the current power shortage has caused significant disruptions in production activities, leading to inefficiencies in production and loss of revenue, affecting the competitiveness of businesses," the Working Group said.

In particular, the Working Group also stressed the importance of transparent and timely communication regarding periodic power outages.

“We welcome EVN’s efforts to have specific plans and notify customers in advance, except in the case of unexpected incidents, we look forward to further improvements in the effective notification of scheduled power outages. This will help private businesses plan their operations better, minimize disruptions and help businesses optimize their resources effectively,” the Working Group assessed.

In the current context, the Working Group believes that it is necessary to accelerate the approval process for projects included in the revised Power Development Plan VII so that projects can be implemented quickly. The Working Group also recommends that the authorities support companies and industries to deploy self-consumption and off-grid renewable energy solutions, such as battery storage systems. This will give companies more flexibility in meeting their energy needs while contributing to ensuring adequate electricity supply for the country.

In the current context, the Working Group believes that dialogue and close cooperation between the public and private sectors are necessary to effectively address the issue of electricity supply. Therefore, the Working Group encourages continued cooperation between the Ministry of Industry and Trade, the Electricity Corporation and relevant parties in the private sector to seek sustainable solutions and ensure uninterrupted electricity supply, and looks forward to the early promulgation of policies for direct power purchase mechanisms and the development of off-grid solar power systems.