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| Many factories are applying technological solutions to manage and use raw materials and fuels efficiently in production |
Foundation for a renewable energy strategy
In the energy transition process, energy security is not limited to electricity but covers the entire chain of raw materials and fuels. Petroleum continues to play a dominant role in transportation, logistics, and part of industrial production.
Hue currently has a river system that provides a foundation for hydropower development, with 13 plants totaling over 459 MW in capacity, serving as a stable base power source. In addition, its long coastline, high sunshine hours, and relatively favorable wind conditions open up opportunities for solar and wind power development. Biomass sources from agricultural, forestry, and livestock by-products are also a significant advantage for developing local energy in a circular economy model.
However, overall, Hue’s energy structure still depends heavily on electricity, accounting for about 80% of demand, while petroleum remains the main fuel for transportation, logistics, and many production activities. This makes the local economy vulnerable to price fluctuations and supply disruptions in the international market, especially in recent times.
According to Mr. Dang Huu Phuc, Director of the Department of Industry and Trade, although the current petroleum supply in the area is generally stable and ensured, the reserve mechanism still mainly relies on businesses, with commercial reserves of about 20–30 days. This poses risks if prolonged external supply shocks occur. Experience from the fuel shortage in 2022 shows that when supply is disrupted, hoarding and speculation can arise, increasing market instability.
At the beginning of 2026, at a conference announcing the “Plan for the development of infrastructure for petroleum and gas storage and supply in Hue City for the period 2025–2030, with a vision to 2050,” many opinions emphasized that energy strategy development must be integrated into spatial planning and aligned with Hue’s orientation as a heritage city. Fuel infrastructure must strictly comply with safety standards while minimizing impacts on ecosystems and urban space.
According to Dr. Hoang Truong from the Institute for Strategy and Policy Research (Ministry of Industry and Trade), the issue of national energy security in general, and petroleum supply in Hue in particular, is not only about ensuring sufficient supply but also about building a strong reserve system to respond to emergencies. For a locality aiming to develop green industry, tourism, and services in a heritage urban environment like Hue, even short-term energy supply disruptions could significantly impact economic activities and people’s lives.
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| The Phu Son waste-to-energy plant, with a capacity of 12 MW, is contributing to creating alternative energy sources |
Shaping a dual strategy
From practical realities and expert recommendations, several key directions can be identified for building a long-term supply and reserve strategy for raw materials and fuels in Hue. Among them, the “dual strategy” approach that ensures fuel supply and reserves while promoting energy transition, is considered appropriate.
Accordingly, reorganizing fuel infrastructure in a modern and integrated manner is crucial. Areas with advantages in location and logistics infrastructure, especially the Chan May – Lang Co coastal area, should be planned as hubs for receiving, storing, and distributing petroleum. The development of large-scale storage facilities, transit stations, and specialized transportation networks should be considered with a long-term vision to ensure sufficient reserves to cope with market fluctuations.
Developing renewable and new energy sources is a fundamental solution to reduce pressure on petroleum supplies. With its existing advantages, Hue can accelerate the development of solar power, biomass energy, waste-to-energy, and gradually explore new energy sources such as green hydrogen in the long term. Research and implementation of LNG power projects in the Chan May – Lang Co area will also serve as transitional energy sources, helping maintain system stability during the transition period.
Notably, Kim Long Motor Hue recently signed a memorandum of understanding with LG Energy Solution, one of the world’s leading battery manufacturers, to build a factory for producing and assembling electric vehicle batteries in the Kim Long Motor Hue Industrial Park. The investment in this facility, with an initial capacity of about 1 million kWh of batteries per year, not only supports the development of electric transportation but also opens up the potential for an energy storage industry, an important factor in gradually replacing fossil fuels.
Efficient and economical energy use is another important factor. The effective application of digital technologies such as IoT and AI in energy management, along with the development of eco-industrial parks, can help reduce fuel consumption demand and ease pressure on supply and storage systems.
In the new context, energy strategy is no longer the responsibility of a single sector but has become a pillar of the country’s overall development strategy. For Hue City, proactively building a long-term supply and reserve strategy for raw materials and fuels, combined with renewable energy development and improved energy efficiency, will be key to ensuring energy security and achieving sustainable development.