Record-breaking heat raises power concerns in Vietnam and India; Samsung and Hyundai monitor the situation
Record-breaking heat in Vietnam and India has sent cooling demand surging, with electricity consumption repeatedly hitting all-time highs. The strain on power grids is growing amid Middle East tensions and the possibility of El Niño, while Samsung Electronics, LG Electronics, Hyundai Motor and Kia, which have production facilities in the countries, are monitoring for possible production disruptions.
Concerns about electricity supply and demand are mounting in Vietnam and India as record-breaking heat grips both countries. A surge in cooling demand has repeatedly pushed electricity consumption to new all-time highs. This has raised concerns about possible disruptions to local industrial production.
Northern Vietnam40degrees amid a heat wave, with electricity use reaching its highest level on record. A similar rise in demand in parts of India is also putting pressure on power grids. The surge in local electricity demand has become a factor affecting grid stability.
Energy costs have risen amid instability in the Middle East, alongside the possibility of El Niño. These two developments are adding to the strain on power grids, observers say. Experts believe prolonged heat could increase the likelihood of power outages in some areas.
Domestic manufacturers operate production bases in Vietnam and India. Samsung Electronics and LG Electronics said they operate local production facilities. Hyundai Motor and Kia also operate assembly and parts production facilities in both countries.
The four companies report that production has not yet been disrupted. However, they have said they are closely monitoring the future power supply situation. The companies continue to review relevant disclosures and local conditions.
Experts are concerned about the combined burden on power grids and rising energy costs. There are reports that the government and power companies are monitoring the power supply situation. Whether industrial production will be disrupted is expected to become clear from future power conditions and company disclosures.
Sources: 파이낸셜뉴스 산업
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