The renewable energy arm of Italy's Enel, Enel Green Power (EGP) says its Vietnamese subsidiary has accumulated 5.692 GW of renewable energy pipeline comprising 915 MW capacity at an advanced stage and targets to commission its maiden utility scale plant here by 2024.
Providing an update on its Vietnamese operations for which it established EGP Vietnam in December 2021, EGP said it aims to increase the advanced stage pipeline to 1.6 GW by the end of the year.
The subsidiary recently secured its 1st project with 160 MW capacity and this solar PV plant is expected to be investment-ready over the next 6 to 12 months.
According to EGP's Asia Pacific region's Head of Business Development Chung Gu Yoon, "Securing this project will give visibility in implementing our first renewable energy project in Vietnam when the next remuneration regulatory scheme will be announced in the coming months."
Yoon added that the country has installed over 22 GW of wind and solar energy installed over the last 4 years, and is expected to need more than 150 GW renewable energy by 2045 to realize its goal of net zero by 2050.
"We believe that Vietnam could potentially become EGP's largest market in the Asia Pacific following India. To give you an idea, achieving a 10% market share in Vietnam would mean reaching an installed capacity of 6 GW by 2030," stated Yoon.
EGP's expansion to Vietnam comes at an interesting time. Following a great solar year in 2020, resulting in 11.9 GW of newly installed PV capacity and boosting the country into the global top 3 solar markets, the solar sector in Vietnam collapsed in 2021. With the cancellation of the Feed-in Tariff 2 support scheme end of 2020, the country has lost its attractiveness for solar investment. Less than 2 GW of PV capacity was installed in 2021, an 83% annual droop from the previous year, according to SolarPower Europe's Global Solar Market Outlook 2022.
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