Spanish energy group Iberdrola has acquired the 270MW Tungkillo battery storage project in South Australia from RES Australia for €275 million, the company said on Wednesday.
The project, which will have a storage capacity of 1,080 megawatt-hours, has received key approvals, secured land access, and advanced grid connection rights. It is scheduled to be commissioned in 2028.
Located in southern Australia, the Tungkillo site is expected to enhance grid flexibility and support the integration of new renewable generation into the national electricity network.
Iberdrola said the transaction supports its strategy to accelerate its battery storage development in Australia, where it plans to invest €1 billion by 2028.
“This acquisition allows us to strengthen our commitment to Australia’s energy transition and support a more flexible, reliable and sustainable grid,” the company said in a statement.
Iberdrola is also developing two other battery projects in the country: the Smithfield facility in New South Wales and the Broadsound site in Queensland, both due to begin operation in 2026.
The Tungkillo deal forms part of Iberdrola’s 2025–2028 investment plan, which outlines €58 billion in total investment. Around 85% of that will be allocated to countries with stable regulatory frameworks, including €5 billion earmarked for projects in Australia and other EU member states.
