Iberdrola Enters Vietnam Renewables Market Via Acquisition

• Iberdrola has arrived in Vietnam with the acquisition of Sowitec Vietnam
• The renewable energy subsidiary of Germany's Sowitec has a 550 MW wind and solar project pipeline
• The portfolio comprises a 50 MW floating solar project which along with other 5 onshore wind projects is expected to be developed between 2022 and 2024

Spanish energy giant Iberdrola has added Vietnam to the list of countries in Asia Pacific where it will expand to after it acquired renewable energy developer Sowitec Vietnam and its 550 MW wind and solar project pipeline.

Sowitec Vietnam's pipeline comprises 5 onshore wind farms with capacities ranging between 50 MW and 250 MW, and a 50 MW floating solar project. All of these projects are expected to be developed between 2022 and 2024. Till now, Sowitec Vietnam was a subsidiary of German renewables company Sowitec.

For Iberdrola, the acquisition is part of its strategy to increase its presence in Asia Pacific where it is already present in renewable energy markets as Australia, Japan and South Korea. Vietnam has a target to install over 20 GW of renewables capacity by 2030 under long term power purchase agreements (PPA). It is also a country that has a free trade policy and foreign investment protection agreement with the European Union (EU), points out Iberdrola with regard to its strategic investment in the renewables market of Vietnam.

Supportive regulatory environment in Vietnam also provides a stable outlook to interested investors which was largely responsible for the country emerging as the top 3 solar power market with 11.6 GW annual addition in 2020, according to Global Market Outlook For Solar Power 2021-2025 of SolarPower Europe released recently (see SPE: 163 GW Solar PV Capacity Addition Globally In 2021).

Interestingly, in the span of less than a month since June 2021, 3 companies have entered the Vietnamese renewables market via acquisition route. Before Iberdrola, Ireland's Mainstream Renewable Power launched itself into the market with 80% stake in D&T's 405 MW solar portfolio (see Mainstream Renewable Power Gets Serious About Vietnam).

In June 2021, EDF Renewables forayed into Asia with 28 MW solar project acquisition from Trina Solar in Vietnam (see EDP Renewables Entering Vietnam With 28 MW PV Project).