Wedoany.com Report-Apr. 25, The European Investment Bank (EIB) has provided €108 million in green loans to Iberdrola for upgrades at the Valdecañas pumped storage hydroelectric complex in Cáceres, Extremadura. The funds will enhance the facility’s energy storage and support the integration of renewable energy into the grid.

Valdecañas pumped storage hydroelectric complex.

The financing consists of a €50 million loan from the EIB and a €58 million loan from the Regional Resilience Fund, backed by Spain’s Ministry of Economy, Trade and Enterprise and the EU’s NextGenerationEU program.

The Valdecañas complex, encompassing the Torrejón and Valdecañas power plants, will increase its installed capacity to 225MW. A 15MW hybrid battery with 7.5MWh storage will also be added. Together, these upgrades will boost the pumping capacity to 313MW and expand the Tajo system’s storage to 210GWh.

The project will utilize existing infrastructure at the Valdecañas and Torrejón-Tajo reservoirs, maintaining current operating levels and using existing transport networks to minimize environmental impact.

The EIB states: “The project will help to secure energy supply and create storage capacity enabling the integration and management of renewable energy.” Upon completion, the facility is expected to lower CO2 emissions and generate approximately 165 direct and 500 indirect jobs.

Located in a cohesion region with below-average EU income levels, the project aligns with the EIB’s 2024–2027 Strategic Roadmap, emphasizing climate action and regional development. It also supports Spain’s Recovery, Transformation and Resilience Plan and the EU’s REPowerEU initiative, which seeks to enhance energy security and reduce dependence on fossil fuel imports.