The European Investment Bank has signed a €175 million ($203 million) green loan with Iberdrola to support the construction and operation of two onshore wind farms in northern Portugal.
The wind farms will have a combined installed capacity of 274 MW and will be integrated into Iberdrola’s Tâmega pumped storage hydropower complex, located along the Tâmega River near Porto. The facilities will connect with three existing hydropower plants—Gouvães, Daivões and Alto Tâmega—forming what is described as Portugal’s first hybrid system combining pumped storage hydropower and wind generation under a single grid connection.
The loan is backed by a guarantee from Cesce, Spain’s export credit agency. It is the second EIB-financed project involving Iberdrola supported by a Cesce guarantee, following the Windanker offshore wind farm currently under construction in the German Baltic Sea.
Installation of the first wind turbine under the Tâmega Wind Hybridisation project has already been completed. By sharing grid connection infrastructure, the hybrid system is designed to optimise renewable energy integration while limiting additional infrastructure requirements and environmental impacts. The overall Tâmega pumped storage complex is among the largest energy projects developed in Portugal.
Jean-Christophe Laloux, Director General of Financing and Advisory Operations within the European Union at the EIB, said: “With this new financing the EIB contributes to energy security in Portugal by unlocking synergies between clean technologies. 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, 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, said: “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.”
The project is located in Portugal’s Norte region, which qualifies as an EU cohesion region, and forms part of broader efforts to expand renewable generation capacity and strengthen the country’s electricity system.
