Spanish energy giant Iberdrola says it has now completed the purchase of the Ararat wind farm in Victoria, in its first major move into generation in a state where it has several large contracts to build major transmission lines.
The purchase of the 242 megawatt (MW) Ararat wind farm, flagged in December last year, means that Iberdrola now has operations in five state grids, and is part of a series of transactions conducted this year.
Ararat has been operational since 2017, and is located on rural land about 80 kilometres northwest of Melbourne, but has been one of many assets hit by grid constraints that Iberdrola hopes will be eased as a series of new transmission projects is built.
The company was recently appointed to help deliver the Victorian section of the Victoria to New South Wales Interconnector West (VNI West), a 500 kilovolt (kV) double-circuit transmission line that will link Victoria’s Western Renewables Link with Project EnergyConnect in New South Wales.
The acquisition marks Iberdrola’s first owned generation asset in Victoria. It also owns wind farms and big batteries in NSW, South Australia and Western Australia, and development projects in Queensland and other storages.
Iberdrola now boasts over 2,500 MW worth of installed capacity across Australia, mostly in wind but also with growing share of battery storage and solar-battery hybrids.
Iberdrola says its acquisition of Ararat wind farm is part of the company’s 2025-28 plan to invest more than €1 billion in Australia, “focusing on core businesses and markets that offer income stability and predictability.”
In Victoria, the wind farm adds to Iberdrola’s role as development partner for the VNI West interconnector, its feasibility licence for the 3 GW Aurora Green offshore wind farm, its offtake contract for 100% of the output of the 57.6 MW Cherry Tree wind farm, and its Mount Doran Battery development.
“The transaction reaffirms our commitment to expanding renewable energy in Australia, in line with Victoria’s electrification strategy,” said Iberdrola Australia chief Paul Simshauser.
“We look forward to working with the Ararat community to deliver social and economic benefits for regional Victoria.
In October, Iberdrola agreed to acquire the Tungkillo battery energy storage system in South Australia.
