(Bloomberg) -- Iberdrola SA is considering pulling out of Taiwan and Vietnam as it focuses on its larger markets, according to a person familiar with the matter.
The Spanish energy firm will look to sell its operations in the two countries, where it has a relatively small presence, according to the person, who asked not to be named because the matter isn’t public.
In Taiwan, Iberdrola is developing offshore wind projects with a total capacity of about 1 gigawatt. The utility entered Vietnam in 2021 with the acquisition of a 550-megawatt renewable pipeline.
Selling those operations would fit into the strategy it outlined at the peak of Europe’s 2022 energy crisis, when Iberdrola chose to focus more on expanding power grids, which play a key role in the transition to clean energy. At the time, the company earmarked the bulk of investments for the US, UK and its home market of Spain.
An Iberdrola spokesperson declined to comment.
The company has said it will put 60% of the €36 billion ($40 billion) it plans to spend through 2026 on networks, while limiting the development of renewable energy assets to projects already under construction. It said it will invest €10.5 billion in clean energy projects in the period.
As part of this strategy, the utility announced earlier this month the acquisition of an 88% stake in UK utility Electricity North West Ltd., which operates a local distribution grid in parts of the country including Manchester. The deal turns the UK into the Spanish company’s biggest market by regulated asset base, with its valuation set to increase to €14 billion.
Earlier this year, Iberdrola also agreed to buy an additional 18% stake in its US unit Avangrid Inc. Power consumption in the country is expected to grow due to the push to electrify an array of industries, and because of demand linked to the expansion of artificial intelligence.
--With assistance from Shoko Oda.
©2024 Bloomberg L.P.
