Iberdrola enters the electricity grid business in Australia with a transmission project between Victoria and New South Wales

Iberdrola Australia has been selected as a strategic partner to develop the VNI West (Victoria to New South Wales Interconnector West) transmission project, a key infrastructure that will connect the states of Victoria and New South Wales in Australia. With this tender, the company takes another decisive step in its strategy of investing in electricity grids in markets with stable and attractive regulatory frameworks.

This project is key to ensuring a reliable energy supply in the country and more competitive electricity prices. VNI West will consist of a 240 km, 500 kV double-circuit transmission line and is expected to increase bidirectional transfer capacity by up to 3,500 MW, enabling the use of renewable energy generation in Victoria and New South Wales. The interconnector will strengthen the Australian electricity network, support the electrification of Victoria and generate social and economic benefits for local communities.

Iberdrola Australia was selected for this project following a rigorous tender process in which experience, capacity and commitment to the project's objectives were assessed. The company is backed by the Group's solid track record, operating 1.4 million kilometres of lines in the United Kingdom, the United States, Brazil and Spain, with more than 57,000 MW of installed capacity worldwide.

During the first phase of the project, Iberdrola will work closely with VicGrid, Victoria's new transmission network planning body, to define the critical elements (engineering design, financial and technical planning, and cost estimation). Iberdrola will also help to strengthen relationships with local communities and stakeholders, and will support essential environmental, cultural heritage and regulatory approvals.

Once this phase is complete, Iberdrola will submit a proposal for the execution of the project (design and construction), as well as for its ownership and operation. The expected completion date for construction is 2030.

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

Iberdrola Australia is one of Australia'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 through new renewable energy and battery storage projects. The company's strategy in Australia is to expand the network, achieve more competitive prices and rapidly grow the renewable energy business to ensure that commercial and industrial customers have a reliable and affordable supply of clean energy.