Iberdrola buys into 3.3 GW offshore wind portfolio in Japan

Spanish energy company Iberdrola has reached an agreement with Macquarie’s Green Investment Group (GIG) to acquire 100 per cent of the Japanese offshore wind developer Acacia Renewables.

Acacia Renewables currently has two offshore wind farms under development, with a combined capacity of up to 1.2 GW, which could be operational by 2028.

It also has four other projects in its pipeline, with a total capacity of 2.1 GW. Three of the six projects will use floating foundations.

Iberdrola will hold an equal share in the six projects alongside GIG, and the partners will develop the portfolio.

The deal is said to give Iberdrola access to a diversified project pipeline, located in different areas of the southwest of the country, in an optimal manner for the auctions announced by the Japanese government.

Iberdrola and GIG are planning to bring further Japanese companies into the projects.

The acquisition of the local renewable developer opens up the opportunity for Iberdrola to enter the Japanese offshore wind market which is in its early stages and has strong growth potential over the coming decades, with a favourable investment environment, the company said.

Installed offshore wind capacity in Japan is currently around 70 MW, but the forecasts indicate that the market will reach 10 GW of installed capacity in 2030, and up to 37 GW in 2050.

In the offshore wind sector, Iberdrola already operates wind farms in the UK and Germany, and the company is working on new developments in the UK, US, German, French, and Swedish markets and has a 15 GW pipeline.

With the acquisition of Japanese company Acacia, Iberdrola has made its sixth corporate move of the year, including transactions in offshore wind power in France and Sweden.