Iberdrola pledges $4bn renewable energy investment to drive Australia’s green transition

Iberdrola, the largest wind power producer in the world, has pledged to double its energy generation and invest up to almost $4.5bn in Australia.

Spain’s Iberdrola is on a massive investment drive in Australia across renewable energy assets.

Spanish utility Iberdrola has pledged to double its energy generation and invest up to €3bn ($4.4bn) in Australia, indicating a major growth push after buying solar and wind company Infigen two years ago.

Iberdrola, the largest wind power producer in the world, said it planned to boost power supplies to 4000 megawatts from its current 2000MW base and spend between €2-3bn after already investing €2bn in Australia.

“We will lead and accelerate its transition to an economy with green energy at its epicentre, with the aim of increasing the amount of electricity generated with renewables, which now represents around a third of its generation,” said Iberdrola chairman Ignacio Galán who visited Australia this week and met with Victorian Premier Daniel Andrews.

The addition of Iberdrola to Australia’s electricity market signals a new wave of European utilities looking to muscle in on the turf of Australia’s big three integrated generator retailers: AGL Energy, Origin Energy and EnergyAustralia. Iberdrola was linked as a potential suitor for AGL ahead of its now canned demerger.

Iberdrola is among suitors working to buy Partners Group’s $4bn CWP Renewables business with first round bids landing in September in the Macquarie Capital-advised competition.

Although it lost out to the Shell-ICG consortium bidding for Meridian Energy’s Australian assets, Iberdrola plans to replicate its global integrated strategy in Australia, suggesting it will be on the hunt to scoop up further clean energy assets on the market.