Wind Farm /
Iberdrola Expands With Ararat Wind Farm Acquisition in Australia
[28/Dec] 
Iberdrola has signed an agreement with Partners Group and OPTrust to acquire full ownership of the Ararat wind farm in Victoria, Australia.Most of the electrici

Iberdrola has reached an agreement to assume full ownership of the Ararat Wind Farm in western Victoria, marking a new step in the company’s Australian growth strategy and the state’s transition toward cleaner power.

Commissioned in 2017, Ararat delivers 242 MW of installed capacity—enough to supply hundreds of thousands of homes under typical wind conditions. A large share of its generation is already contracted through long-term power purchase agreements with established offtakers. Those PPAs underpin more predictable cash flows, insulating the project from some wholesale market volatility while giving businesses and public buyers a dependable path to decarbonize their electricity use.

Victoria’s electricity system is in the midst of rapid change. Authorities have set an ambitious objective to source 95 percent of the state’s electricity from renewables by 2035. As coal exits and electrification accelerates, wind assets like Ararat are poised to play a larger role in meeting rising demand. Grid upgrades—including the Western Renewable Link and Project Energy Connect—are designed to relieve congestion and open new pathways to move renewable power where it’s needed, improving export capability from wind-rich regions.

For Iberdrola, the acquisition aligns with a broader 2025–2028 investment roadmap. The group has earmarked more than €1 billion for Australia within that period, nested in a global program of around €58 billion. The majority of that worldwide capital is targeted at jurisdictions with stable regulatory settings, reflecting a strategy to scale clean generation and the infrastructure that supports it while managing risk.

Recent moves in Australia illustrate that approach. In October, Iberdrola added the Tungkillo battery energy storage system to its portfolio, strengthening its ability to balance variable renewable output. The company was also selected to help advance the Victorian segment of the Victoria–New South Wales Interconnector, a cross-border transmission upgrade seen as pivotal for unlocking additional renewable capacity and improving reliability.

Beyond Australia, Iberdrola has continued to consolidate in core Latin American markets. In September, it increased its shareholding in Brazilian distributor Neoenergia by 30.29 percent, reflecting an emphasis on vertically integrated positions that connect generation, networks, and retail.

Key points at a glance:

• Ararat Wind Farm: 242 MW, in operation since 2017
• Revenue base supported by long-term PPAs with established customers
• Victoria targeting 95% renewable electricity by 2035
• Grid projects like the Western Renewable Link and Project Energy Connect expected to improve renewable export capacity
• Part of Iberdrola’s 2025–2028 plan: >€1 billion for Australia; ~€58 billion globally with most directed to stable markets
• Recent Australian activity includes the Tungkillo BESS acquisition and work on the Victoria–NSW Interconnector
• Completion of the Ararat transaction remains subject to standard closing conditions and approvals

From an environmental and system perspective, the acquisition could deliver multiple benefits. Contracted wind generation displaces fossil-fuelled power, lowering emissions intensity of the grid. Coupled with storage and stronger interconnection, it can also reduce curtailment and improve the reliability of renewable supply during peak evening demand. For large energy users, PPAs backed by projects like Ararat provide a tangible route to meet emissions targets while stabilizing energy costs.

As Victoria adds more renewable capacity and electrifies transport, heating, and industry, the combination of firmed wind power, batteries, and upgraded transmission will be critical. Iberdrola’s move to consolidate ownership at Ararat signals continued confidence in Australia’s clean energy buildout and underscores how global developers are aligning capital with regions ready to scale renewables at pace.