Iberdrola has gained weight in Australia with its second battery award

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Iberdrola has gained weight in Australia with its second battery award

Iberdrola has been awarded its second battery in Australia. The energy multinational’s project will be located in Smithfield, in western Sydney, and will have a capacity of 65 megawatts (MW) and 130 megawatt hours (MWh) of storage for two hours.

Among the winners of this storage tender, the largest held in Australia so far, is also Enel, the parent company of Endesa. The Italians will deliver three separate virtual power plants through a demand response project with a capacity of 95 MW and a minimum storage duration of two hours.

The two biggest winners of the auction, jointly funded by the New South Wales federal and Labor governments, are Australia’s AGL Energy and Akaysha (acquired last year by US investment giant BlackRock). The first will create a 500 MW battery and two hours of storage (1,000 MWh) at the Liddell coal plant. The second will build a 415 MW, four-hour (1,660 MWh) project in Wellington, central western New South Wales.

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The projects of the four winners are worth nearly 1.8 billion dollars (almost 1.7 billion euros) and will provide a total of 1,075 MW of stable capacity.

All of these must be operational before December 2025, the year in which the closure of the country’s largest coal plant, the 2,880 MW Eraring facility, is scheduled. And the aim of this tender is to avoid supply problems that may arise with the closure of this mega plant.

Ideally, the winning storage projects must be available to provide at least half of their capacity to deal with any supply shortfall declared by the Australian Energy Market Operator (AEMO).

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The batteries in this tender are equivalent to 8% of NSW’s total summer demand and are backed by a ten-year agreement with the government.

Places called Iberdrola in Australia

In 2020, Iberdrola signed an agreement with Australian distributor TransGrid for the operation of a 50 MW (75 MWh) battery energy storage system at Wallgrove in New South Wales.

The company led by Ignacio Galán has set the goal of investing between 2,000 and 3,000 million euros in Australia to reach 4,000 MW of installed capacity in the coming years.

Iberdrola began operations in the Australian market in 2020, after completing the public takeover bid (OPA) launched for the Australian renewable energy company Infigen Energy, now known as Iberdrola Australia.

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This transaction strengthens its entry into a new market where it recently acquired the largest onshore wind project at the time, Mount James Park, with a capacity of 1,000 MW.

Currently, the electrical multinational has more than 1,500 MW of installed power in the country and more than 1,900 MW under construction.