Iberdrola Advances Australian Renewable Strategy with Ararat Wind Farm Acquisition
Iberdrola has taken a significant step forward in strengthening its renewable energy footprint in Australia through an agreement to acquire 100% ownership of the Ararat Wind Farm in Victoria. The asset is being purchased from Partners Group and OPTrust, further consolidating Iberdrola’s position in one of Australia’s most strategically important renewable energy markets. With an installed capacity of 242 megawatts (MW), the wind farm has been operational since 2017 and is already a well-established contributor to Victoria’s clean energy supply.
The acquisition aligns closely with Iberdrola’s long-term global strategy of prioritizing stable, income-generating renewable assets in markets with strong regulatory frameworks. Australia, and Victoria in particular, fits squarely within this approach due to its ambitious decarbonization targets, rising electricity demand, and growing need for reliable renewable generation backed by modern grid infrastructure.
A Mature Asset with Stable Revenues
One of the most attractive features of the Ararat Wind Farm is its strong commercial profile. The majority of the facility’s electricity output is sold under long-term Power Purchase Agreements (PPAs) with large, creditworthy customers. These agreements provide predictable and stable cash flows, insulating the project from short-term market volatility and enhancing its long-term financial performance.
As Victoria continues to electrify its economy—driven by population growth, industrial electrification, and transport decarbonization—wholesale electricity demand is expected to increase steadily. This evolving market environment supports higher long-term price expectations for renewable energy, positioning Ararat to benefit not only from existing PPAs but also from future market opportunities.
For Iberdrola, the acquisition strengthens its ability to supply its growing portfolio of business customers in Victoria with electricity generated from its own assets. This vertical integration improves supply security, enhances pricing competitiveness, and reinforces customer relationships at a time when corporate demand for renewable energy is accelerating rapidly.
Supporting Victoria’s Renewable Energy Ambitions
Victoria has set one of the most ambitious renewable energy targets in Australia, aiming to source 95% of its electricity from renewable sources by 2035. Achieving this goal will require substantial investment in wind, solar, energy storage, and transmission infrastructure. The acquisition of the Ararat Wind Farm directly supports this transition by securing a large-scale, operational wind asset that already plays a meaningful role in the state’s energy mix.
Beyond generation capacity, the wind farm is well positioned to benefit from upcoming transmission and transport infrastructure projects designed to unlock renewable energy zones and improve interconnection across southeastern Australia. Key developments such as the Western Renewable Link and Project Energy Connect are expected to significantly enhance the ability to export renewable electricity to other regions.
These projects will increase grid flexibility, reduce congestion, and create new pathways for renewable energy to reach demand centers. For Ararat, improved transmission access could enhance dispatch options and long-term value, further strengthening the asset’s strategic importance within Iberdrola’s Australian portfolio.
Expanding a Growing Australian Platform
The Ararat acquisition builds on a series of recent strategic moves by Iberdrola in Australia. In October, the company completed the acquisition of the Tungkillo Battery Energy Storage System (BESS), reinforcing its focus on combining renewable generation with storage solutions to enhance grid stability and flexibility.
In the same month, Iberdrola was selected as Development Partner by VicGrid to help develop the Victorian section of the Victoria–New South Wales Interconnector West (VNI West). This major transmission project is critical to enabling large-scale renewable integration across state borders and ensuring long-term energy security for southeastern Australia.
Together, these investments demonstrate Iberdrola’s integrated approach to the energy transition—combining generation, storage, and grid infrastructure to create a resilient, future-ready energy system. Rather than focusing solely on individual assets, the company is positioning itself as a long-term partner in Australia’s clean energy transformation.
Alignment with the 2025–2028 Strategic Plan
The acquisition of the Ararat Wind Farm is fully aligned with Iberdrola Group’s recently presented 2025–2028 strategic plan. Under this plan, the company anticipates investing more than €1 billion in Australia over the next four years, reflecting strong confidence in the country’s economic stability and regulatory environment. Australia’s AAA credit rating and clear decarbonization trajectory make it an attractive destination for long-term capital deployment.
Globally, Iberdrola plans to invest approximately €58 billion during the 2025–2028 period, with a strong emphasis on markets that offer predictable returns and regulatory certainty. Around 85% of total investment will be directed toward countries with an A rating or higher, underscoring the company’s disciplined capital allocation strategy.
The United Kingdom is expected to receive the largest share of investment, with approximately €20 billion earmarked for grid modernization, offshore wind, and renewables. The United States will follow with €16 billion, driven by network expansion and clean energy development. The Iberian Peninsula is set to receive €9 billion, while Brazil will attract €7 billion. Other European Union countries and Australia together will account for approximately €5 billion in planned investment.
Reinforcing Long-Term Commitment
The Ararat transaction, which remains subject to customary closing conditions, reaffirms Iberdrola’s long-term commitment to Australia’s electrification and decarbonization agenda. By acquiring a proven, operational wind asset while simultaneously investing in storage and transmission, the company is strengthening its ability to deliver reliable, clean energy at scale.
As Australia accelerates its shift away from fossil fuels, the need for experienced global developers and operators will only increase. Iberdrola’s growing presence positions it to play a meaningful role in meeting rising demand, supporting grid stability, and enabling the country to achieve its clean energy targets.
With the acquisition of the Ararat Wind Farm, Iberdrola is not only expanding its asset base but also reinforcing its strategic vision: to lead the global energy transition through disciplined investment, operational excellence, and long-term partnerships in key markets worldwide.
Source Link: https://www.iberdrola.com/
