Spanish energy giant Iberdrola has announced that it will invest hundreds of millions of dollars in renewable energy in South Australia.

Xabier Viteri, Iberdrola's head of renewables, said that the company will invest A$500 million ($344.9 million) in the Port Augusta Renewable Energy Park (PAREP), a proposed wind and solar farm, according to Guardian Australia.

He said that Australia was an ideal renewable investment opportunity because of its high consumption and stable energy market.

"It's a place where renewables are going to play a much more relevant position in the coming years, clearly," he said.