Iberdrola’s renewable energy journey in Australia just reached a defining milestone. On December 19, 2025, the global energy major confirmed its agreement to acquire the Ararat wind farm in Victoria, reinforcing its long term commitment to one of the world’s most attractive clean energy markets. This move signals confidence, scale, and a sharp focus on stable renewable income streams.

The acquisition, though undisclosed in value, fits squarely within Iberdrola Group’s 2025 to 28 strategic plan, which outlines more than one billion dollars in planned investments across Australia. At the same time, the transaction marks a full exit from Australian wind assets for Partners Group, reshaping the competitive landscape of the sector.

The Ararat wind farm is a proven large scale renewable asset with a capacity of 242 MW and commercial operations dating back to April 2017. Developed with a total investment of approximately 336 million dollars, the project has already established itself as a reliable contributor to Victoria’s clean energy mix.

Its location offers strong future upside. Planned transmission upgrades such as the Western Renewable Link and Project Energy Connect are expected to enhance grid connectivity, allowing Ararat to export power more efficiently. For Iberdrola, this combination of operational maturity and infrastructure driven growth potential aligns well with its focus on predictable and resilient assets.

A major strength of the Ararat wind farm lies in its diversified power sales structure. A twenty year power purchase agreement with the Australian Capital Territory Government covers 80.5 MW at a fixed tariff, providing dependable long term cash flows. Additional certainty comes from a virtual offtake agreement signed by Flow Power for 70 MW of output.

The remaining generation is exposed to the merchant market, offering Iberdrola upside potential during periods of strong electricity pricing. This balanced approach between contracted and merchant revenue reflects sophisticated risk management and enhances the project’s overall value.

For Iberdrola, Ararat strengthens its operational footprint and accelerates progress toward its Australian growth ambitions. For the broader market, the transaction underscores the country’s appeal to global renewable investors seeking scale, policy support, and infrastructure development.

As Australia advances toward net zero targets, deals like this highlight how established assets can change hands to unlock fresh capital and expertise. With completion subject to standard closing conditions, all eyes are now on how Iberdrola leverages Ararat within its expanding renewable portfolio.

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