Residential electricity efficiency and implications for Vietnam's clean energy transition

Vietnam’s electricity consumption relative to its average national income per capita is significantly higher than that of similar countries like India or China. Current electricity use is not sustainable and in the future may threaten energy supply security. Of the total electricity consumption, the residential sector accounts for up to a third, making it a critical component for policy interventions. We employ a stochastic frontier model and three rounds of nationally representative household living standards surveys from 2014 to 2018 to measure residential electricity efficiency and its determinants in Vietnam. Our result shows that the average electricity efficiency in Vietnam is approximately 75 %. We then discuss Vietnam’s potential electricity savings and recommend improvements which will be necessary if Vietnam wants to accelerate its long-term clean and sustainable energy prospects.