Spanish utility Iberdrola has taken a significant step in bolstering its renewable energy portfolio in Australia by signing an agreement to acquire full ownership of the Ararat wind farm in Victoria. The 242MW wind farm, operational since 2017, is a key asset in Iberdrola’s strategy to expand its renewable energy footprint in the country. The deal, struck with Partners Group and OPTrust, underscores Iberdrola’s commitment to supporting Australia’s clean energy transition.
The Ararat wind farm, which sells most of its electricity under power purchase agreements (PPAs), offers stable revenue streams. This financial predictability is further enhanced by Victoria’s ambitious renewable energy targets. The state aims to source 95% of its energy from renewable sources by 2035, a goal that aligns with the wind farm’s projected benefits from rising electricity prices and upcoming transmission upgrades. Iberdrola highlighted that the Western Renewable Link and Project Energy Connect will expand the farm’s ability to export power, making it a strategic asset in the region’s energy landscape.
This acquisition is part of Iberdrola’s broader strategic plan for 2025-28, which includes over €1bn ($1.17bn) of planned investment in Australia. The deal follows closely on the heels of Iberdrola’s acquisition of the Tungkillo Battery Energy Storage System (BESS) and its appointment as the development partner for the Victorian section of the Victoria-New South Wales Interconnector. These moves reinforce Iberdrola’s commitment to helping Australia meet its clean energy objectives.
Iberdrola’s investment strategy is ambitious, with a total of €58bn earmarked for global projects. The company plans to allocate 85% of this investment to countries with stable regulatory conditions and strong credit ratings. Within this framework, Australia is set to receive a significant portion of the funds, alongside major investments in the UK, the US, the Iberian Peninsula, Brazil, and other EU nations. In September, Iberdrola further solidified its position in the renewable energy sector by agreeing to acquire an additional 30.29% stake in Neoenergia, a Brazilian energy distributor.
The acquisition of the Ararat wind farm is poised to shape the development of the renewable energy sector in Australia. It signals a growing trend of international utilities investing in the country’s renewable infrastructure, driven by favorable regulatory conditions and ambitious clean energy targets. As Iberdrola expands its portfolio, it is likely to spur further investment and innovation in the sector, contributing to Australia’s broader electrification goals. The deal also highlights the importance of stable revenue streams through PPAs and the strategic value of transmission upgrades in enhancing the export capacity of renewable energy assets.