BAKU, Azerbaijan, April 14. The European Investment Bank (EIB) has signed two green loans with Iberdrola, totaling 108 million euros, to enhance the pumping capacity of Spain's Valdecañas hydroelectric complex, Trend reports.
The loans include 50 million euros from the EIB’s own funds and 58 million euros from the Regional Resilience Fund (FRA).
The funding will support improvements at the Valdecañas and Torrejón power plants, increasing their energy storage and enabling better integration of renewable energy. The upgraded facility will feature a total installed capacity of 225 MW, with a 15 MW hybrid battery and 7.5 MWh of stored energy.
The combined capacity of the battery and hydroelectric units will boost the plant’s pumping capacity to 313 MW and increase the storage capacity of the Tajo system to 210 GWh. The works will utilize the existing infrastructure, minimizing environmental impact.
Once operational, the complex is expected to reduce CO2 emissions and create approximately 165 direct jobs, with an additional 500 indirect jobs. The project will also contribute to economic and social cohesion in a region with below-average per capita income.
The investment is part of Spain's Recovery, Transformation and Resilience Plan and aligns with the EIB’s commitment to enhancing energy security within the EU. The Valdecañas project also supports the REPowerEU initiative, aiming to reduce dependency on fossil fuels.
The Valdecañas hydroelectric complex operates as a reversible pumping plant, allowing for efficient electricity generation and storage. This system stabilizes the electricity grid by storing excess energy and releasing it when demand rises.