The European Investment Bank (EIB) – the EU’s lending arm – has signed a €175m loan for Iberdrola. The funds, structured as a green loan, will finance the construction of two wind farms in Portugal.
Once complete the projects will have a combined capacity of 274MW. This capacity will be integrated with hydro-powered pump storage. The combined hydro-wind facility – the Tâmega gigabattery – is the country’s inaugural hybrid connection project. EIB has previously extended financing for this facility, including a €500m signed back in 2018. The total investment into the project, by Iberdrola's estimates, exceeds €1.5bn.
“By combining wind and hydropower the Tâmega complex will increase clean energy production and maximize use of existing energy infrastructure for the benefit of Portuguese consumers and local economies”, commented Jean-Christophe Laloux , EIB’s director general of EU financing and advisory operations.
The project’s design allows both hydroelectric energy and wind energy to operate within a common grid connection. In a statement, Iberdrola said this lowers environmental impact. The project, once completed, is expected to be one of Portugal’s largest energy projects.
Spanish export credit agency Cesce has also extended a guarantee to support the loan. “Tâmega hydropower complex demonstrates how long-term partnerships with institutions like the European Investment Bank and Cesce can channel innovation and sustainable investment into projects that strengthen economic growth and advance renewable energy for the future”, said the agency’s area director for state accounts, Beatriz Reguero.
