The coal industry applies a special mechanism to ensure energy security

The Government issued Resolution 28 on June 9 on a special mechanism with valid coal mining licenses, to ensure national energy security. The application of a specific mechanism must ensure national energy security in urgent situations, without disrupting coal supply for electricity production and foundation industries.

According to the resolution, organizations and individuals are allowed to exploit no more than 15% of the prescribed capacity without having to carry out procedures to adjust the content of mineral exploitation licenses. Excess output is only used for electricity production.

Total coal mined output (including excess capacity) does not exceed the coal reserves allowed to be exploited and must be monitored and reported periodically.

Units can only apply this mechanism with technical capacity, equipment and technology to meet the increased mining capacity, while ensuring labor safety, mine safety and environmental protection.

The resolution is effective from June 9, 2026 to December 31, 2027. After the above deadline, mineral exploitation will be carried out in accordance with the issued license and current legal regulations.

This specific mechanism was previously proposed by the Ministry of Agriculture and Environment to ensure national energy security against potential impacts from the Middle East conflict. Meanwhile, domestic electricity demand continues to increase, while ensuring imported fuel sources faces many uncertain factors in the market, logistics, prices and supply capacity.

Coal is a fundamental energy source, important for ensuring stable operation of the national power system. In the first quarter, coal power reached 40.6 billion kWh, accounting for 52.8% of the national power source structure. Meanwhile, the intense heat in recent days has caused electricity demand to skyrocket. For example, during the days of May 23-27, the entire system’s electricity consumption continuously reached new peaks, according to the National Electricity Market and System Operating Company (NSMO). Particularly in the North, the maximum capacity is approaching 30,000 MW, an increase of about 27% over the same period in 2025.