Iberdrola enters the network business in Australia with a project between Victoria and New South Wales

Iberdrola has been selected as a strategic partner to develop a electric transport project between Victoria and New South Waleswith which the group enters the electrical networks business in Australia.

Specifically, through its subsidiary in Australia, Iberdrola will develop the VNI West (Victoria to New South Wales Interconnector West) projectwhich will connect both states through a 240-kilometer, 500-kV double-circuit line, increasing the bidirectional transfer capacity by up to 3,500 megawatts (MW), which will make it possible to take advantage of the generation of renewable energy in Victoria and New South Wales.

In a statement, the electricity company indicated that, with this tender, “it takes another decisive step in its strategy of Invest in electricity networks in markets with stable and attractive regulatory frameworks“In addition, the interconnector will strengthen the Australian electricity grid, support the electrification of Victoria and generate social and economic benefits for local communities.

Iberdrola indicated that the company’s choice to This project responds to a “rigorous” bidding process in which experience, capacity and commitment to the project objectives were valued.

The group chaired by Ignacio Sánchez Galán operates 1.4 million kilometers of lines in the United Kingdom, the United States, Brazil and Spain, and has more than 57,000 MW of installed capacity all over the world.

During the first phase of the project, Iberdrola will work together with VicGrid, the new Victorian transport network planning bodyto define the critical elements -engineering design, financial and technical planning and cost estimation-.

In addition, energy will also contribute to strengthen the relationship with local communities and interest groupsand will support essential authorizations in matters of the environment, cultural heritage and regulations.

Completion scheduled for 2030

Once this phase is completed, Iberdrola will present a proposal for the execution of the project -design and construction-, as well as for its ownership and operation. The planned completion date of construction is 2030.

The joint work between Iberdrola and VicGrid will lay the foundations for the VNI West line advances as planned, contributing to the decarbonization and energy security of the country.

Iberdrola Australia is one of the country’s leading renewable energy operators, with more than 2,300 MW of generation capacity in operation or under construction, and plans to increase this figure by almost 1,000 MW by 2028 thanks to new renewable energy and battery storage projects.

Investments of more than 1,000 million euros

He strategic plan 2025-2028 recently presented by Iberdrola, foresees total investments of more than 1,000 million euros in Australia – a country with a ‘AAA’ credit rating -, mainly to the development of batteries.

Iberdrola’s ‘new roadmap’ foresees a total investment of 58,000 million eurosan amount that will be allocated 85% to countries with an ‘A’ rating with stable, predictable and attractive regulatory frameworks and with a focus on the electricity grid business.

The United Kingdom will be the main investment destinationwith 20,000 million euros, followed by the United States, with 16,000 million, the Iberian Peninsula, with 9,000 million euros, Brazil, with 7,000 million euros and other EU countries and Australia, with 5,000 million.