Italian energy firm Enel plans exit from Vietnam

Italian energy conglomerate Enel is planning to withdraw from Vietnam, following in the footsteps of other international energy firms like Norway’s Equinor and Denmark’s Ørsted, both of which have cancelled renewable energy projects in the country.

In 2022, Enel announced its intention to invest in projects capable of generating up to 6GW of renewable energy in Vietnam, pointing to the country’s potential in wind and solar power. However, the company did not provide details of how it would execute these investments.

Sources suggest this decision is part of Enel’s broader global restructuring efforts. The exact timeline for its departure from Vietnam remains unknown, and both Enel and the Ministry of Industry and Trade have declined to comment.

Enel, one of the world’s largest investors in renewable energy, has shifted its focus under new CEO Flavio Cattaneo, prioritising grid infrastructure and committing a larger portion of its budget to domestic projects while scaling down on international investments.

According to Enel’s website, its renewable energy arm, Enel Green Power, operates over 1,300 plants with around 64GW of installed renewable capacity globally.

Vietnam, with a current installed power capacity of about 80GW, aims to nearly double this by 2030, with wind power expected to contribute nearly 20 per cent of total capacity, a significant increase from its negligible share in 2020.

The country, a key hub for large-scale manufacturing by multinational companies, has made significant strides in renewable energy development in recent years, attracting substantial foreign investment. However, integration challenges persist, as many onshore wind and solar projects remain unconnected to the national grid.