Iberdrola boosts electrification in Australia with two new storage projects

The company has been awarded a long-term contract from the state government for the Kingswood battery (100 MW) and has officially opened the Smithfield facility (65 MW), with the assistance of the state’s Energy Minister, Penelope Sharpe.

Both projects strengthen the integration of renewables, increase grid flexibility, improve availability and efficiency of supply, and contribute, in general, to a more self-sufficient, secure, competitive, and sustainable energy system.

The Kingswood project will reach 1080 MWh of storage. It will be able to supply energy for at least eight consecutive hours and supply some 65 000 homes at peak demand times. The New South Wales Department of Planning, Housing, and Infrastructure recommended approval on 22 December 2025 and the project continues to be assessed by the Independent Planning Commission.

This initiative has been selected for a long-term energy service agreement (LTESA) from the Government of New South Wales, within the sixth round of auctions, within the framework of the State Executive’s Roadmap for Electric Infrastructure.

In addition, Iberdrola Australia has inaugurated the Smithfield battery (130 MWh of storage) in the west of Sydney. The project has been completed ahead of schedule and also has an LTESA contract, awarded in round 2 of the same state programme. It can supply 20 000 homes.

Australia is a strategic market for the Iberdrola Group, which is committed to energy storage as a key element in accelerating electrification and strengthening reliability of supply and price stability.

Its subsidiary, Iberdrola Australia, has established itself as one of the country's leading renewable energy operators, with more than 2000 MW of generation capacity in operation or under construction, supplying clean energy to approximately 400 commercial and industrial customers. As part of its 2025 – 2028 strategic plan, Iberdrola foresees total investments of more than €1 billion in Australia, a country with a AAA credit rating, focused on key businesses and markets that offer stability and predictability.

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