The European Investment Bank (EIB) has granted two green loans totaling €108 million to Iberdrola to boost energy storage capacity at the Valdecañas pumped storage hydroelectric complex in Cáceres, Extremadura. This investment supports the transition to renewable energy by enhancing the plant’s ability to store and manage clean power.
The financing includes €50 million from the EIB’s own funds and another €58 million backed by Spain’s Regional Resilience Fund, supported by the Ministry of Economy and EU’s NextGenerationEU initiative.
Once completed, the upgraded complex—which includes the Valdecañas and Torrejón plants—will reach 225 MW of installed capacity and integrate a 15 MW hybrid battery system capable of storing 7.5 MWh. Together, the enhancements will push the site’s pumping capacity to 313 MW and increase total system storage to 210 GWh.
The upgrades will utilize existing infrastructure, avoiding changes to reservoir levels and minimizing environmental impact. According to the EIB, the project will improve energy security, support renewable integration, reduce CO₂ emissions, and generate around 165 direct and 500 indirect jobs.
Located in an EU cohesion region, the project aligns with the EIB’s goals of climate action and regional development, as well as Spain’s Recovery Plan and the EU’s REPowerEU strategy to reduce dependence on fossil fuels.