Global energy and electricity provider Iberdrola announced today a new commitment to invest between €2 and €3 billion in Australia, aimed at accelerating the switch to renewable energy, and to boost its capacity in the country to 4GW.

The commitment was following a meeting in Australia between Iberdrola Chairman, Ignacio Galán, Premier of the State of Victoria, Daniel Andrews, and the Minister for Energy, Environment, Climate Action and Solar Housing, Lilly D’Ambrosio.

Iberdrola’s announcement follows the introduction by Australia’s new government in July of a bill that would for the first time set the country’s emissions reduction targets into law. Targets under the proposed legislation include GHG reductions of 43% by 2030, compared to 2005 levels, and the achievement of net zero by 2050.

The government has stated that formalizing the country’s climate commitments into law will help enable the businesses and financial community to commit investments in renewable energy.

Iberdrola launched a €75 billion capital plan in late 2020, which includes massive investments over the next few years in renewable energy, with the company anticipating nearly doubling its renewables capacity by 2025. Over the next decade, the company aims to invest €150 billion, tripling its renewable energy capacity and doubling its network assets.

The company already has a 2GW portfolio in Australia, which it now expects to double in the coming years. In addition to renewable energy and storage products, Iberdrola cited opportunities in the country including new sectors such as green hydrogen, ammonia and green materials.

Iberdrola acquired Australian renewable energy company Infigen Energy in 2020, and the company has committed around €700 million to several renewable growth projects in the country. Recently, the company acquired the rights to the world’s largest wind farm at Mount James and the 360 MW Broadsound photovoltaic plant in Queensland.

Galán said:

“With these investments, Australia is consolidating its position as one of Iberdrola’s key markets. The country’s abundant wind and solar resources, as well as the pace of technological development, place this region in a privileged position.”