Banco Sabadell | According to press reports, the Spanish energy company is leading the bid for the VNI West project in Australia, an electricity transmission line with an estimated value of €2.24 billion. Iberdrola is competing in a consortium with Australian companies Capella Capital and AusNet. The project faces public opposition due to the overhead route, which has delayed its launch until at least 2030.
Assessment: Positive news if confirmed, although with limited impact (around 2% capitalisation/4% DFN’25), which would fit in with the company’s strategy of growth in networks in core countries, especially with the investment effort planned for the period 2026-31 (around €15 billion per year) following the capital increase and asset rotation. We note that, until now, the main focus of investment in Australia had been on renewable capacity.
