Iberdrola is targeting the Japanese market as a new platform for growth in renewable energy, specifically in the field of offshore wind. The company has reached an agreement with Macquarie’s Green Investment Group to acquire 100% of the local 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. Iberdrola will hold an equal share in the six projects alongside GIG, and the partners will develop the portfolio.
The operation is in line with the company’s strategy, allowing Iberdrola to position itself in the early development stage of Japan’s offshore wind market, which has strong growth potential. The deal gives 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 committed to continuing efforts to build strong partnerships in Japan, bringing further Japanese companies into the projects.
Acacia has a team experienced in the management of renewable projects and in-depth knowledge of the market, as well as offices in the country; critical conditions for leading the future development of new projects in Japan on its own.
Market with strong growth potential and favourable investment environment
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.
Installed offshore wind capacity in Japan is currently around 70 MW, but the country has deployed a strategy to decarbonise its energy mix and promote energy independence. Forecasts indicate that the market will reach 10 GW installed in 2030 and up to 37 GW in 2050*.
Diversification strategy adding projects to the portfolio
The acquisition of Acacia is in line with Iberdrola’s strategy to consolidate its position as the world’s largest renewable energy company by adding new projects to its portfolio, and joins other transactions carried out by the company in recent years in the offshore wind sector. Operations that have allowed the development of wind farms in the Baltic Sea (Wikinger, Baltic Eagle), the North Sea (East Anglia ONE), the Irish Sea (West of Duddon Sands), the Massachusetts coast (Vineyard Wind), the French coast (Saint Brieuc) and, more recently, access to 9 GW capacity in Sweden.
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 and French markets and has a 15 GW pipeline.
With the acquisition of Japanese company Acacia, the company led by Ignacio Galán, has made its sixth corporate move of the year, despite the challenges posed by COVID-19. In addition to transactions inoffshore wind power in France and Sweden, the company has also acquired the French renewable energy company Aalto Power, made agreements to develop 165 MW of onshore wind power in Scotland and, more recently, has taken ownership of Infigen, establishing a major presence in the Australian renewable energy market.