Vietnam pushes for higher coal output to meet surging power demand

Vietnam is boosting coal production to combat a severe electricity shortage driven by intense heatwaves and the looming threat of El Nino. Domestic miners can now raise output by up to 15% through the end of the year, according to a government resolution effective June 9.

The government stated the increased coal extraction is exclusively for power generation, aiming to "ensure national energy security in an urgent situation." This comes after prolonged hot weather and heavy rains significantly impacted mining activities for the Vietnam Coal Mining group, the nation's largest producer. In the first five months of the year, coal exploitation fell over 4% compared to the previous year.

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The extra coal output is exclusively used for power generation.

Vietnam, which still depends on coal for about half of its electricity, has pledged to achieve net-zero carbon emissions by 2050. The country also signed an agreement with Russia in March for the construction of its first nuclear power plant, signaling a long-term shift in energy strategy despite immediate reliance on coal.

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ensure national energy security in an urgent situation, not interrupting the supply of coal for power generation and other baseline industries