Spanish energy giant Iberdrola to invest $A4.4 billion in Australian energy transition

Ignacio Galán, chairman of Spanish energy giant Iberdrola, has announced that his company is to invest between €2 and €3 billion into Australia’s clean energy transition, including renewables, storage, networks and green hydrogen.

Galán is visiting Australia this week, and has met with NSW energy minister Matt Kean, Victoria premier Daniel Andrews and state energy minister Lily d’Ambrosio, possibly to discuss his company’s offshore wind plans, and on Wednesday met with prime minister Anthony Albanese and climate and energy minister Chris Bowen.

Galán says his company aims to lift its renewable portfolio in Australia to 4GW in the coming years, and is particularly keen on green hydrogen.

“There is huge global demand from industry for new climate solutions such as green hydrogen, green ammonia and green steel,” he said in a statement.

“With abundant natural resources and the skilled energy workforce needed to develop these products at a large-scale, as well as established energy trading partners, Australia can quickly lead the way in these new clean economy technologies.”

The new commitment, which converts to around $A3 to $A4.4 billion, builds on the €2 billion Iberdrola has already invested into Australia’s renewable energy sector and its portfolio of over 2GW of renewable energy projects – including 1,062MW of renewables already installed and operational.

“With these investments, Australia is consolidating its position as one of Iberdrola’s key markets,” Galán said.

“The country’s abundant wind and solar resources, as well as the pace of technological development, place this region in a privileged position.”

Iberdrola, which has global assets of more than $230 billion, gained its major foothold in Australia in 2020 through the takeover of the ASX-listed wind developer Infigen Energy. It has been a rumoured bidder for the wind and solar assets of CWP Renewables.

It has since invested in the Avonlie solar farm and the Flyers Creek wind farm in central New South Wales, and the Port Augusta renewable energy hub in South Australia, the largest hybrid wind-solar farm in the country, which has recently completed its 210MW wind component.

It is also invested in battery storage, operating the Lake Bonney big battery next to the wind farm of the same name, and the contracting rights to the newly completed Wallgrove battery in NSW.

Iberdrola has also recently acquired the rights to the 1GW Mt James wind project as well as the rights to the 360MW Broadsound solar PV project in Queensland. It also bought Autonomous Energy.

Iberdrola also declared in July of this year its interest in Australia’s offshore wind market, specifically the offshore wind opportunities in the Gippsland region east of Melbourne in Victoria, but is yet to reveal details of its plans.