The government of electricity-thirsty Vietnam has implemented stringent new energy conservation targets for 2026 as the nation grapples with record-breaking electricity demand driven by intense early-summer heatwaves.

The government has officially, according to the Ministry of Industry and Trade ( MTT ), set a goal of saving at least 3.0% of the country’s total electricity consumption for the year 2026. This move, formalized under Decision No. 1126/QD-BCT signed by the MTT’s vice-minister Nguyen Hoang Long on May 14, seeks to safeguard national energy security and mitigate the risk of power shortages in the Southeast Asian manufacturing hub.

As of mid-May, the dry season in southern Vietnam persists as the rainy season is forecast to start later than usual, with significant rainfall not expected until June. Simultaneously, other parts of the country are suffering from sustained heatwaves.

The new policy in Vietnam highlights a critical need for intensified conservation during the peak summer months from April to July, during which the ministry has mandated a savings target of at least 10%.

To maintain the stability of the national grid, authorities are aiming to reduce the load capacity by at least 3,000 megawatts during peak hours when supply and demand are most imbalanced. Furthermore, state utility Vietnam Electricity ( EVN ) has been tasked with implementing technical measures to keep system-wide electricity losses below 6%.

A key pillar of Vietnam’s long-term power strategy involves a significant push for renewable energy, with the government aiming for 10% of administrative offices and 10% of households to adopt self-consuming rooftop solar power systems annually.

The regulatory measures arrive as the country faces immediate operational challenges. Electricity consumption hit its highest level of the year on May 13, reaching 1.1 billion kilowatt-hours as temperatures soared nationwide.

Coal-fired power plants, EVN data show, currently carry the heaviest burden, accounting for approximately 53.4% of output during peak hours, followed by hydropower at 26%.

The strain on the system is expected to intensify further as a fresh heatwave is forecast to sweep across the country in the final week of May. This surge in demand is particularly concerning for Vietnam’s industrial sectors, which have historically suffered from disruptive blackouts during periods of extreme heat.

Adding to the physical strain, financial pressure on the energy sector is also mounting. EVN is currently seeking approval from the MTT to increase retail electricity prices to help the utility absorb accumulated losses, which stood at roughly 5.6 trillion dong ( US$212.4 million ) at the end of last year.

By combining immediate conservation pleas with the new 2026 regulatory framework, Vietnam is attempting to transition from emergency management towards a more resilient and self-sufficient energy infrastructure.