Iberdrola has received €400 million from Spain's Instituto de Crédito Oficial (ICO) – the largest every green loan granted by the financial institution – with the funds to be allocated to the 1158MW Tâmega pumped hydro power scheme, currently being built in northern Portugal.
Tâmega, which comprises three new power plants, will increase Portugal's total installed capacity by 6% and will supply renewable energy to 440,000 Portuguese homes. Of the project's capacity, 880MW is pumped storage technology, which will facilitate the integration of renewables in the Iberian electrical system.
The project also includes a significant sociocultural and environmental action plan supported with €50 million by Iberdrola which is being implemented in collaboration with the region's municipalities. The purpose of the plan is to develop the area while improving living standards.
It is estimated that during the construction of the hydroelectric complex, a total of 3500 direct jobs and 10,000 indirect jobs will be created.
The loan granted by ICO was certified by independent agency VigeoEiris, which has verified that the project complies with the Green Loan Principles. In its certification, VigeoEiris also assessed Iberdrola's environmental, social and governance performance.
The loan deal was signed on 30 May by Iberdrola Chairman, Ignacio Galán, and the President of the financial institution, José Carlos García de Quevedo.