Italian green energy company Enel has been considering exiting Vietnam’s energy market, according to sources discussing the matter with Reuters.
In 2022, the company explained its plans to invest in Vietnamese renewable plants that generate up to 6GW. Enel specifically noted the country’s solar and wind markets but did not indicate whether it would be specialising.
Further information
According to Reuters’ sources, Enel’s choice is part of its company-wide reorganisation – with a strategic planning presentation planned for November. Despite this, Enel has not indicated whether an official announcement of the exit from Vietnam will be announced.
Both the utility company and the Vietnam industry ministry declined to comment to Reuters.
Background
Enel is owned by the Italian government and is one of the largest investors in green energy internationally. However, new leadership has seen the company steer towards Italy’s grid infrastructure.
Enel states that it currently has over 1,300 plants totalling 64GW of renewable capacity via its renewables arm, Enel Green Power.
Reuters explains that, as Vietnam is reliant on investment into renewable energy sources to enable its shift away from coal, Enel’s exit could cause issues for Vietnam’s solar and wind industry.
This is not the first European renewable company to exit Vietnam’s market. Danish company Orsted Norway’s Equinor have both paused or cancelled its investments in Vietnam’s solar and renewables industry.
