Vietnam's state utility on Wednesday warned the national power system will be stretched as electricity consumption is forecast to rise sharply due to anticipated heatwaves, while water levels at some hydropower dams are lower than normal.

Temperatures rose to record highs, above 44 degrees Celsius in parts of northern Vietnam on Sunday, meteorological data showed, and are expected to peak over the next three months, possibly driving electricity consumption to surpass generation, state utility EVN said in a statement.

EVN also said water flows to dams in northern Vietnam in the first four months of this year were 30% to 40% below average levels in previous years, and that water levels will remain low for the rest of the year due to the anticipated return of the El Niño phenomenon.

The utility called on firms and households to save energy.

"Air-conditioners should be set at 26 degree Celsius or higher and avoid using too many large electric appliances at the same time," it said in the statement.

Hydropower plants accounted for a third of Vietnam's total installed power generation capacity of 69.3 gigawatts at the end of 2020, according to the government.

The Southeast Asian country, a regional manufacturing hub, aims to more than double its power generation capacity by 2030, with hydropower being the second-largest source of electricity after coal-fired power plants.

(Reporting by Khanh Vu; Editing by Kanupriya Kapoor)