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Vietnam reservoir flood release indicative of reduced hydro, more coal power strategy?

The Son La and Tuyen Quang hydropower plants are set to release water into northern Vietnam’s Red River in order to avoid overflowing in expected coming rain. Businesses that rely on the river have been made aware and advised to exercise caution.

This is interesting in that hydropower has been underutilised this year compared to last.

Just 15 percent of Vietnam’s power came from hydro from January to April of this year, compared to 25 percent for the same period last year. At the same time it has been reported that about 64.6 percent of Vietnam’s electricity came from burning coal in April, whereas in 2023, on average, coal was responsible for just 46 percent of Vietnam’s electricity supply.

In this context, this latest development supports the theory that the strategy is to focus on burning coal for power and to save reservoir water for hydro for a rainy day.

This does, however, also highlight the unintended flow of effects. For example, businesses that rely on Vietnam’s rivers may find their operations disrupted. Sand and gravel mining, agriculture, aquaculture, and tourism to name just a few.

(On a side note, several tourists swimming in a river in Suoi Mu Spring were washed away last week when a hydropower plant upstream discharged a torrent of water. They were reportedly all rescued.)

All of that said, power outages last year were a big problem for the manufacturing sector and pressure has been on to ensure a stable and steady supply this year.

See also: Electricity in Vietnam: Foreign Investor Cheat Sheet 2024

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