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Iberdrola kicks off its first large-scale battery project in the US

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Spanish renewable energy giant Iberdrola is constructing its first large-scale battery storage project in the United States, marking a significant milestone in the company's expansion into the American energy storage market. The Shutler battery project, located in Gilliam County, north-central Oregon, is scheduled to come online in 2027 with a power capacity of 41 megawatts (MW) and energy storage capacity of 82 megawatt-hours (MWh). This development underscores the accelerating push by utilities to add storage capacity to enhance grid reliability and integrate renewable energy.

Iberdrola, a global leader in renewable energy, has been actively expanding its footprint in the US through its subsidiary Avangrid, which already operates approximately 3,000 MW of generation capacity in the Pacific Northwest. The Shutler project represents Iberdrola's first foray into utility-scale battery storage in the country, leveraging its expertise in renewable energy to address grid stability challenges.

The 41 MW/82 MWh system is a two-hour battery, meaning it can deliver its full 41 MW output for about two hours before needing to recharge. This duration is typical for utility-scale batteries that shift excess renewable energy from periods of low demand to periods of high demand, helping to balance the grid. Such systems are crucial as solar and wind power become more prevalent, smoothing out their intermittent generation.

Battery storage has emerged as one of the fastest-growing segments of the US power sector due to its ability to maximize the value of renewable energy while improving grid reliability. By storing electricity generated during peak production times and releasing it when demand is high, batteries reduce the need for fossil-fuel-based peaker plants and lower overall system costs. Iberdrola's investment in this project reflects the growing confidence in battery technology among major energy players.

The project is expected to strengthen Avangrid's portfolio in the Pacific Northwest, where renewable energy resources are abundant. While no official statements from company executives were included in the announcement, industry observers view this as a strategic move to capitalize on the region's strong wind and solar potential. The construction of the Shutler battery project also aligns with Oregon's clean energy goals, which include ambitious targets for renewable energy adoption and carbon emission reductions.

As the US transitions to a cleaner energy grid, battery storage is poised for continued rapid growth, with projects like Shutler paving the way for larger installations. Iberdrola's entry into this market signals that major international utilities see long-term value in storage infrastructure. With a completion date set for 2027, the project will contribute to the region's energy resilience and support the integration of additional renewable capacity in the years ahead.