Spanish energy company Iberdrola has acquired renewable energy firm Sowitec Vietnam, which has a 550MW renewable pipeline in development.
The deal is intended to help Iberdrola strengthen its presence in renewable energy markets in the Asia-Pacific (APAC) region.
Part of the Germany-based Sowitec Group, Sowitec Vietnam’s pipeline includes six projects. Five of these projects are onshore wind farms, while the other is a 50MW floating photovoltaic project.
With capacities ranging between 50MW and 250MW, the projects included in the deal will be developed between next year and 2024.
The projects are being developed as part of Vietnam’s energy strategy, which aims to meet increasing energy demand with renewable sources.
Vietnam plans to install more than 20GW of renewable energy through long-term power purchase agreements by 2030, which would require foreign investments.
Last year, the country signed a free trade and foreign investment protection agreement with the European Union.
Iberdrola aims to become the world’s largest renewable energy company and build on its market position in Europe and the US by increasing its APAC presence.
The company has set growth strategies for other APAC markets, including Australia, Japan and Korea.
Sowitec Group currently operates across 14 countries and has developed more than 6,000MW of renewable energy capacity.
In March, Iberdrola, Cosmo Eco Power and Swiss engineering firm Hitz agreed to co-develop a 600MW offshore wind farm in Japan.
The three companies signed an agreement to work on the Seihoku-oki wind farm project in Aomori Prefecture. The wind farm will enter the second round of Japan’s capacity auction, due to be held later this year.
In May, Iberdrola reported a 12% increase in adjusted net profit for the first quarter of the year to €1.08bn ($1.27bn). The company’s reported net profit for the quarter stood at €1.02bn ($1.02bn).