Capital Energy and Verbund Green Power have solidified a strategic alliance to spearhead the development of pumped storage hydro plants in Spain.

The partnership will assess the feasibility of constructing two plants in Spain, totaling approximately 830MW in capacity. According to the terms outlined in the agreement, Capital Energy will spearhead the promotion of these plants within the joint venture, while Verbund will take the lead in their construction, operation, and provision of essential technical support throughout the developmental stages. 

This marks the second deal inked by Verbund and Capital Energy in Spain aimed at advancing clean energy initiatives. In 2022, the two firms finalized a sale and purchase deal encompassing five wind and solar projects, collectively generating 171MW, situated across three autonomous communities: Andalusia, Asturias, and Extremadura.

Commenting on the signing, Juan José Sánchez, CEO of Capital Energy, said: "This new transaction with Verbund, a leading European electricity company that is focused, like us, on promoting the energy transition, ratifies our commitment to the development of clean energy infrastructures, such as wind farms, photovoltaic plants or pumped-storage hydroelectric plants, which continue to promote the necessary process of decarbonization of the economy".

Enrique Barbudo, Managing Director of VERBUND Green Power Iberia, added: “Verbund is Austria’s leading energy company and one of the largest hydropower producers in Europe. We are looking forward to implementing our expertise in hydropower in Spain and to complementing our already consolidated portfolio of wind and photovoltaic projects in the country. We remain committed to the deployment of renewable capacity in Spain to contribute to the achievement of the ambitious plans of the country’s National Integrated Energy and Climate Plan (PNIEC)."