Global energy giant Iberdrola has appointed Global Maritime Australia as the marine services contractor for its Gippsland offshore wind project. This announcement comes as Iberdrola shifts its primary focus toward battery storage projects in Australia for the near future. The Gippsland project, part of the larger Aurora Green initiative, aims to generate up to 3 gigawatts (GW) of renewable energy.
The first task for Global Maritime Australia involves the installation of a LiDAR buoy, which is essential for assessing wind conditions. This move represents a significant endorsement of Iberdrola’s commitment to the offshore wind sector in Australia. Currently, there are 11 proposals within the Gippsland offshore zone that hold feasibility licenses and are expected to progress to fully-fledged projects.
While this development is promising, Iberdrola’s strategic plan for Australia through to 2028 indicates a more immediate focus on battery storage investments. During its recent Capital Markets Day, the company outlined a renewed global emphasis on priority markets, highlighting the importance of regulated returns from network investments. An Iberdrola spokesperson stated, “It does indeed outline a strategy to increase networks investment. It also focuses on storage and renewables where projects are in priority markets, including Australia.”
Iberdrola’s commitment to battery projects is evident, with €5 billion allocated from a total budget of €58 billion for investments in “other EU & Australia.” The company currently has 11 battery projects at various stages of development in Australia, which executives described as “profitable” during an investor call last week.
Among its active projects, Iberdrola operates the Lake Bonney battery alongside its wind farm. It is also commissioning the 65 megawatt (MW), 130 megawatt hour (MWh) Smithfield battery adjacent to an existing gas power plant in New South Wales, and constructing the 180 MW, 360 MWh Broadsound solar farm battery in Queensland.
As Iberdrola continues to expand its battery storage capabilities, it is also pursuing network investments in Australia. The company leads a consortium aiming to become the network operator for the proposed New England Renewable Energy Zone (REZ) in northern New South Wales and is involved in the $4 billion VNI West transmission line that will link New South Wales and Victoria.
Looking ahead, Iberdrola has nine wind projects in various stages of development, five of which have received approved development applications. Notably, three of these projects are located in Queensland, where they face opposition from the state government.
On a global scale, Iberdrola has been divesting assets to concentrate on network investments in the United Kingdom and the United States. In the past month, the company sold its entire business in Hungary, which included a 158 MW wind farm for €171.2 million. Earlier this year, it divested a smart meter business in the UK and sold its 15 projects in Mexico.
Iberdrola’s dual focus on offshore wind and battery storage illustrates its strategy to adapt to changing market dynamics while maintaining a commitment to renewable energy development in key regions like Australia.
