The Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) has awarded the Just Transition tender for the Narcea 400kV substation to La Barca Energía, enabling the company to develop a 320MW pumped storage hydropower plant in southwest Asturias.
The award follows the publication of the final resolution in Spain’s Official State Gazette (BOE). The tender was managed by the Institute for Just Transition (ITJ) under a competitive process that allocates electricity grid access to renewable energy projects while prioritising those delivering the greatest socio-economic benefits for communities affected by the energy transition.
La Barca Energía has committed to investing more than €400m in the project. Of this, €323m will be spent within the Asturias supply chain for the development of the generation facilities. The company will also invest €2m in biodiversity conservation, restoration and ecosystem enhancement, alongside €1m in circular economy initiatives.
The company has committed to creating up to 289 jobs for at least 12 years through the operation and maintenance of the pumped storage plant, the promotion of business projects and environmental conservation activities.
As part of its socio-economic commitments, La Barca Energía will also provide 211,585 hours of training and professional development in the local area. In addition, it plans to install 4.4MW of self-consumption capacity, benefiting 452 consumers.
The commitments are backed by a €38.4m financial guarantee linked to the grid capacity allocation. The project remains subject to the necessary environmental and administrative approvals.
MITECO said the Narcea tender complements other support measures introduced since 2019 for the Southwest Asturias Just Transition Zone, including grants for business development, environmental restoration and infrastructure projects, as well as funding from the Institute for Energy Diversification and Saving (IDAE).
According to the ministry, more than €169m has been awarded since 2019 to support workers and communities affected by the energy transition in southwest Asturias. This includes a €74m environmental restoration programme funded through Spain’s Recovery, Transformation and Resilience Plan. The ITJ also continues to operate a job bank for workers affected by the closure of the Narcea coal-fired power plant and its associated businesses.
