May-June power shortages cost Vietnam US$1.4 billion: World Bank

HCMC – The power outages in northern Vietnam in May and June inflicted a significant economic blow, totaling US$1.4 billion or 0.3% of Vietnam’s GDP, according to the latest report by the World Bank. Power shortages have worsened, as the summer of 2022 saw a peak demand supply deficit of 1.8 gigawatts. While the southern region had a surplus capacity of about 20 gigawatts, transmission limitations hindered its accessibility. Vulnerabilities to climate change and commodity risks were exposed, particularly the impact of the El Nino weather phenomenon on water availability and electricity demand. The World Bank proposed several solutions, including securing the schedules for power plant commercial operations in 2024 and 2025, expediting investments in power transmission lines, and diversifying supply sources.