Equinor, Iberdrola reportedly back out of renewables in several markets

Norway’s Equinor ASA (NYSE:EQNR) and Spain’s Iberdrola SA (BME:IBE) are rethinking their moves on the global renewables board, with media reporting this week that both energy companies are looking to discontinue their operations in Vietnam and other countries as their strategies evolve.

Equinor's head of renewables, Paal Eitrheim, told Reuters that the Norwegian state-owned oil major was abandoning plans to develop offshore wind projects in Spain and Portugal, and was withdrawing from Vietnam. The decisions were motivated by the company's need to control its expenditures, the news agency reported on Wednesday.

Eitrheim said that offshore wind development is becoming increasingly expensive, and believes that these projects will take longer to complete in several markets worldwide. He also hinted that Equinor might withdraw from more markets, Reuters reported.

Equinor entered early into the floating offshore wind market in Spain. In 2022, the company partnered with Spanish utility Naturgy Energy Group SA (BME:NTGY) to prepare for Spain’s floating wind auction with a 200-MW project off the Canary Islands.

Equinor was also hoping to develop offshore wind in Vietnam, and possibly hydrogen, ammonia and carbon capture and storage projects. As Reuters reported, the company decided not only to leave the Vietnamese offshore wind sector, but also close its office in Hanoi and exit the country entirely.

Bloomberg, citing a knowledgeable source, reported on Thursday that Iberdrola is looking to close shop in both Vietnam and Taiwan and sell its operations there to focus on larger markets.

The Spanish utility has a 550-MW pipeline in Vietnam, consisting of five onshore wind and one floating solar project, acquired in 2021. According to Bloomberg, Iberdrola is developing 1 GW of offshore wind in Taiwan.

An Iberdrola spokesperson declined to comment on Bloomberg’s report, the media company said. Bloomberg speculates that Iberdrola’s departure from these countries would be in line with its strategy to spend more on the grids business in core markets, as evidenced by its bids for Avangrid Inc (NYSE:AGR) in the US and power network operator Electricity North West (ENW) in the UK.

As the utility itself announced, the spending on renewables during the 2024-2026 planning period will be confined to projects already under construction.

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