The European Investment Bank (EIB) has signed a €175 million green loan with Iberdrola to support the construction and operation of two wind farms that will be integrated with the Tâmega pumped storage hydropower complex in northern Portugal. The project will create Portugal’s first grid connected wind–pumped storage hybrid project, Iberdrola said.
The two onshore wind farms will have a combined installed capacity of 274MW and will be connected to Iberdrola’s Tâmega pumped storage system, which includes the Gouvães, Daivões and Alto Tâmega hydropower plants on the Tâmega River near Porto.
By sharing grid connection infrastructure, the hybrid configuration is designed to optimise renewable energy integration while reducing the need for additional transmission assets and associated environmental impacts. The combined wind and hydropower system is intended to strengthen the role of the Tâmega complex in supporting Portugal’s electricity system and electrification strategy.
The loan is backed by a guarantee from Cesce, the Spanish export credit agency. This is the second EIB-financed Iberdrola project supported by Cesce for green investments outside Spain, following the Windanker offshore wind project in Germany.
Construction of the hybrid project is underway, and installation of the first wind turbine has already been completed. Once operational, the wind farms are expected to supply electricity to more than 400,000 people.
The EIB said the project contributes to its climate action and cohesion objectives, as well as the European Union’s REPowerEU programme to reduce reliance on fossil fuel imports. The project is located in Portugal’s Norte region, which is classified as a cohesion region under EU policy.
“With this new financing the EIB contributes to energy security in Portugal by unlocking synergies between clean technologies”, said EIB Director General of Financing and Advisory Operations within the European Union Jean-Christophe Laloux. “By combining wind and hydropower the Tâmega complex will increase clean energy production and maximize use of existing energy infrastructure for the benefit of Portuguese consumers and local economies.”
Beatriz Reguero, area director for State Accounts at Cesce, said “Cesce is proud to support Spain’s leading companies as they drive the energy transition across Europe. Tâmega hydropower complex demonstrates how long-term partnerships with institutions like the European Investment Bank and Cesce can channel innovation and sustainable investment into projects that strengthen economic growth and advance renewable energy for the future.”
José Sainz Armada, Iberdrola’s Chief Finance, Control and Corporate Development Officer, said that “This operation with the EIB and the guarantee from Cesce reinforces our financing strategy and confirms our capability to promote key strategic projects in the Iberian Peninsula and throughout Europe that improve energy security and competitiveness through electrification.”
