The Spanish utility bought the 270-MW, 1,080-MWh Tungkillo project in South Australia from RES Australia.
“The Australian system requires a significant increase in battery storage capacity to integrate the new renewable capacity and bring flexibility to the system,” Iberdrola said. “The location of the Tungkillo project, in the south of the country, is optimal for providing this service. In the case of Iberdrola Australia, the storage systems provide backup capacity for its portfolio of energy sales contracts to customers.”
Iberdrola currently has two other BESS projects under construction in Australia. The 65-MW Smithfield project in New South Wales and the 180-MW Broadsound project, part of a 360-MW solar facility in Queensland, are expected to start operations in 2025 and 2026, respectively. Additionally, the company operates two existing BESS projects: the 50-MW Wallgrove Grid Battery in New South Wales, under a 10-year dispatch agreement with TransGrid, and the 25-MW Lake Bonney project co-located with the Lake Bonney Wind Farms near Millicent in South Australia.
Beyond Tungkillo, Iberdrola has three proposed BESS projects in Australia. The Burrenbring Battery is planned at one gigawatt with two to four hours of storage on privately owned land in the Isaac Region. Mount Doran Battery is proposed at 200 MW with two-hour storage, connecting to Australian Energy Operations’ Elaine Terminal Station in Moorabool Shire. Kingswood Battery is planned at 270 MW with four-hour storage, connected to TransGrid’s Tamworth Substation on an eight-hectare site.
Iberdrola stated that acquiring Tungkillo aligns with its 2025–2028 plan, which forecasts more than EUR 1 billion in investments in Australia, focusing primarily on battery development. The company recently announced a EUR 58 billion global investment plan through 2028, allocating EUR 5 billion to Australia and EU markets outside the Iberian Peninsula.
Executive Chair Ignacio Galan said on September 24: “This plan aims to transform Iberdrola's profile into a more regulated company, with networks as a vector for growth. We will invest EUR 58 billion by 2028, two-thirds of which will go to transmission and distribution networks, mainly in the United Kingdom and the United States.”
Of the total investment, 65% is allocated to regulated networks, including EUR 25 billion for distribution and EUR 12 billion for transmission, with 95% of transmission investment targeting the UK and US. EUR 21 billion is allocated to generation and customer projects, including 38% for offshore wind, 24% for onshore wind, 10% for solar, and 10% for storage. Geographically, the UK and US lead with EUR 20 billion and EUR 16 billion, respectively, followed by Iberia with EUR 9 billion and Brazil with EUR 7 billion.
Iberdrola noted that 85% of the total investments target “A-rated countries with stable, predictable and attractive regulatory frameworks,” emphasizing the company’s focus on secure, growth-oriented markets.
