Iberdrola to build the Tâmega pumped hydro power with an investment of £1.32bn
Spanish energy company Iberdrola has secured €400m (£353m) green loan from Instituto de Crédito Oficial (ICO) for a pumped hydro power scheme in Portugal.
The loan will be allocated to the Tâmega pumped hydro power scheme, with total capacity of 1.15GW, presently being built in northern Portugal.
Iberdrola to build the hydro power project with £1.32bn investment
The present agreement and the loan signed with the European Investment Bank (EIB) last summer, have secured financing for the Tâmega pumped hydro power scheme, whose construction will require an investment of of more than €1.5bn (£1.32bn).
When operational, the project will increase Iberdrola’s capacity by 8% and will supply enough clean electricity to be supplied to 440,000 Portuguese homes. Out of the 1.15GW, 880MW will be pumped storage and it is expected to integrate renewables in the Iberian electrical system for increased sustainability. Tâmega project’s construction could create 3,500 direct and 10,000 indirect jobs.
During the 2018-2022 period, the company is investing nearly €13.3bn (£11.6m) in renewable energy projects. The investment is in-line with the company’s clean energy commitment for a low carbon energy model.
Iberdrola said in a statement: “After being the first Spanish company to launch a green bond, in April 2014, the group has become the world’s leading corporate issuer with total green bonds now exceeding € 9.5 billion.
“The company has also been a pioneer in taking out green loans: in February 2017 it signed the first green loan with BBVA for an energy company and in April 2018, in Mexico, the first operation of this type carried out in Latin America, amounting to €500 million and US$400 million, respectively.”
Recently, the company inaugurated the Baixo Iguaçu hydroelectric power plant, which will control the flow of Iguaçu falls in Brazil.
With a capacity of 350MW, the company invested €500m (£441.4m) in the project and it will supply enough clean electricity to 8 million Brazilians, which is equivalent to 8% of the annual electricity demand in the state of Paraná, where the project is located.