EIB and Iberdrola sign €175 million green loan to support Tâmega wind farms construction
Published by Jessica Casey,
Editor
Energy Global,
The European Investment Bank (EIB) has signed a €175 million green loan with Iberdrola to support the construction and operation of two new wind farms in northern Portugal. These facilities will have a combined capacity of 274 MW, capable of supplying clean energy to 400 000 people, and will be integrated in Iberdrola´s Tâmega pumped storage hydropower complex (also called the Tâmega gigabattery). It will be the first project with a hybrid connection between pumped storage and wind power in Portugal and one of the largest energy initiatives in the country.
The new EIB loan is guaranteed by the Spanish export credit agency, Cesce. This is the second EIB-financed operation with Iberdrola backed by Cesce’s guarantee to support green projects led by Spanish companies outside Spain, contributing to the European Union's climate action and environmental sustainability objectives. The first operation was Iberdrola’s Windanker offshore wind farm, currently under construction in the German Baltic Sea.
The new project is progressing successfully, and the installation of the first wind turbine has already been completed. Known as the Tâmega wind hybridisation, the project will build and connect two new wind farms with three existing hydropower plants part of the EIB-financed Tâmega pumped storage hydropower complex, Gouvães, Daivões, and Alto Tâmega, located over the Tâmega River, close to Porto. The Tâmega pumped storage hydroelectric complex is one of the largest energy projects in Portugal.
The hybridisation of both technologies allows wind and hydroelectric energy to share the same connection infrastructure to the electricity grid, optimising the integration of renewables and minimising infrastructures and environmental impact. It also reinforces the role of the Tâmega System as an anchor for Portugal's electrification.
By increasing the share of clean energy in the grids, the project will strengthen Portugal’s electricity system and directly supports European and national goals to reduce carbon emissions, cut reliance on fossil fuels, and meet ambitious climate targets. Thereby Tâmega Wind Hybridisation is a strong contributor to EIB Group’s climate action objectives set out in the Group’s Strategic Roadmap for 2024 – 2027 and the Climate Bank Roadmap Phase 2 for 2026 – 2030, as well as the EIB action plan to support REPowerEU, the programme to increase energy security and speed up the energy transition by reducing the European Union’s dependence on fossil fuel imports.
Located in Portugal’s Norte region – a cohesion region – the investment promotes economic, social and territorial cohesion, one of the EIB Group’s eight strategic priorities.
“With this new financing the EIB contributes to energy security in Portugal by unlocking synergies between clean technologies,” said EIB Director General of Financing and Advisory Operations within the EU, Jean-Christophe Laloux. “By combining wind and hydropower the Tâmega complex will increase clean energy production and maximise use of existing energy infrastructure for the benefit of Portuguese consumers and local economies.”
Beatriz Reguero, Area Director for State Accounts at Cesce, Spanish Export Credit Agency, said: “Cesce is proud to support Spain’s leading companies as they drive the energy transition across Europe. 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.”
José Sainz Armada Iberdrola's Chief Finance, Control and Corporate Development Officer, added: “This operation with the EIB and the guarantee from Cesce reinforces our financing strategy and confirms our capability to promote key strategic projects in the Iberian Peninsula and throughout Europe that improve energy security and competitiveness through electrification.”
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