HANOI, Sept 10 (Askume) – Italian state power company Enel (ENEI.MI)
The Italian utility said it hopes to invest in 6 gigawatts (GW) of renewable energy in Vietnam by 2022, though it did not specify what type of energy it would produce, but said wind and solar are likely.
Two people familiar with the matter said the move was part of a broader restructuring of Enel’s global operations.
It was unclear when the Southeast Asian country would announce its withdrawal. The company is due to unveil its annual strategic plan in November.
Enel declined to comment. The sources spoke on condition of anonymity because the information is not public.
Vietnam’s industry ministry did not respond to a request for comment.
State-controlled Enel is one of the world’s biggest investors in renewable energy, but Chief Executive Flavio Cattaneo has shifted its focus to grid infrastructure since taking office last year, promising to direct a significant portion of investment domestically and reduce international risks.
Enel’s withdrawal from Vietnam would be the latest blow to the Southeast Asian nation’s energy strategy, which has beenIts basis is to increase investment in renewable energy and natural gas power generation to reduce dependence on coal .
Last month, Askume reported that Norway’s Equinor (EQNR.OL) cancelled plans to invest in Vietnam’s offshore wind sector , while Denmark’s Orsted (ORSTED.CO) said last year it was considering plans to build a large offshore wind farm in the country.
Enel’s renewable energy unit, Enel Green Power, manages more than 1,300 plants and has around 64 GW of renewable energy installation capacity worldwide, according to Enel’s website.
Enel did not comment on the status of its projects in Vietnam.
Renewable energy issues
Vietnam’s current power generation installation capacity is around 80 GW, and the government plans to nearly double it by 2030. Wind power alone is expected to account for about 20% of total installation capacity by then, and its share will be much lower by 2020. occur.
Many multinational companies have large manufacturing operations in the export-oriented country, and renewable energy efforts have increased in recent years, attracting many foreign investors.
However, Vietnam is struggling to integrate some of the new capacity across several solar and onshore wind projectsNot yet connected to the grid.
Regulatory hurdles have blocked recent progress, including a lack of oversight of offshore wind development and lengthy negotiations over prices the state pays power producers.
“I think companies are tired of investing capital in stagnant markets,” a Vietnam-based energy industry executive told Askume, speaking on condition of anonymity because the comments could impact his business.
To meet rising demand and avoid the power shortages that spooked investors last year, ChinaThere was a significant increase in coal consumption .
