| Project Detail |
The project will fund the upgrade and retrofitting of the existing 313 MW reverse pumped-storage hydropower plant (the Torón-Valdecañas scheme), located in the Extremadura region. Additionality and Impact Through this upgrade pumped-storage hydro project, the European Investment Bank (EIB) will contribute to increasing the energy storage capacity and flexibility of the power system in Spain. The Project aims to support the integration of variable renewables. It will improve system reliability and contribute to security of supply. The EIBs support addresses market failures related to public goods and climate change externality. This aligns with the EU policy on energy storage, as defined in the Electricity Directive (2019/944), REPowerEU targets, and the updated National Energy and Climate Plan (NECP) of Spain. The financing of this storage project is a significant contribution to the EIBs lending priority on Energy and its transversal objectives on Climate Action, Environmental Sustainability, and Social and Economic Cohesion, especially since it is located a Less Developed EIB Cohesion Priority region. The Project is expected to be financially sustainable and deliver positive economic benefits. The EIBs financing provides an additional source of funding to the Promoter, which is currently one of the major operators in the renewable energy sector in Spain. The Banks financial contribution is considered very good and valuable to the client, as the EIBs offering is more favourable than market alternatives and the EIB Green Loan label is deemed as a stamp of quality on the Promoters investments. Objectives The aim is to enhance the pumping capacity of the plant to enable the cyclical transfer of water between the two major reservoirs of Alcántara and Valdecañas. This improvement will significantly increase the energy storage capacity of the Tagus River cascade and the whole Spanish grid. Sector(s) Energy - Electricity, gas, steam and air conditioning supply Proposed EIB finance (Approximate amount) EUR 60 million Total cost (Approximate amount) EUR 121 million |
