EIB and Iberdrola Launch €175M Hybrid Wind–Hydro Project to Power Portugal’s Clean Energy Backbone

The project represents Portugal’s first hybrid connection between wind power and pumped-storage hydropower and ranks among the country’s largest and most advanced energy initiatives.

The European Investment Bank (EIB) has signed a €175 million green loan with Iberdrola to finance the construction and operation of two new wind farms in northern Portugal, marking a major leap forward in hybrid renewable energy systems and grid-scale resilience.

With a combined capacity of 274 megawatts, the new wind farms will supply clean electricity to around 400,000 people and will be fully integrated into Iberdrola’s Tâmega pumped-storage hydropower complex—widely known as the Tâmega gigabattery.

The project represents Portugal’s first hybrid connection between wind power and pumped-storage hydropower and ranks among the country’s largest and most advanced energy initiatives.

A New Model for Renewable Integration at Scale

Known as the Tâmega Wind Hybridisation project, the initiative links two new wind farms to three existing hydropower plants—Gouvães, Daivões, and Alto Tâmega—along the Tâmega River near Porto. The broader Tâmega complex, previously financed by the EIB, is one of Portugal’s most significant energy infrastructure investments.

By allowing wind and hydropower assets to share grid connection infrastructure, the project:

• Optimises renewable energy integration

• Reduces the need for new transmission infrastructure

• Minimises environmental impact

• Enhances system flexibility and reliability

This hybridisation strengthens the Tâmega system’s role as a cornerstone of Portugal’s electrification strategy, effectively pairing variable wind generation with large-scale energy storage.

Financing Backed by European Climate and Security Priorities

The EIB loan is guaranteed by Cesce, Spain’s export credit agency. It marks the second EIB-backed Iberdrola project supported by Cesce outside Spain, following the Windanker offshore wind farm currently under construction in the German Baltic Sea.

The investment directly supports:

• EU and national climate targets

• Reduced dependence on fossil fuel imports

• The REPowerEU plan to boost energy security

• The EIB Group’s Climate Bank Roadmap and Strategic Roadmap 2024–2027

Located in Portugal’s Norte region, a designated cohesion area, the project also advances economic, social, and territorial cohesion, one of the EIB Group’s eight strategic priorities.

Building a More Resilient European Power System

Installation of the first wind turbine has already been completed, signalling rapid progress.

“By combining wind and hydropower, the Tâmega complex will increase clean energy production and maximise the use of existing infrastructure,” said Jean-Christophe Laloux, EIB Director General for Financing and Advisory Operations within the EU. “This directly benefits Portuguese consumers and local economies while strengthening energy security.”

Beatriz Reguero, Area Director for State Accounts at Cesce, highlighted the role of long-term institutional partnerships in scaling climate innovation across Europe.

“Projects like Tâmega show how public finance can unlock innovation and accelerate the energy transition,” she said.

José Sainz Armada, Iberdrola’s Chief Finance, Control and Corporate Development Officer, added that the operation reinforces Iberdrola’s strategy to deploy electrification-led solutions that enhance Europe’s competitiveness and resilience.

Why This Matters for Energy-Tech and Infrastructure Innovators

The Tâmega Wind Hybridisation project showcases a next-generation grid model, where:

• Renewables are integrated with storage at scale

• Infrastructure is reused rather than duplicated

• Flexibility is embedded into system design

For energy developers, grid operators, storage innovators, and policymakers, the project demonstrates how hybrid systems can stabilise renewables-heavy grids while accelerating decarbonisation.

Call to Action: Scale Hybrid Energy Systems Across Europe

As Europe races to secure clean, reliable power, hybrid wind–storage projects are emerging as a blueprint for the future.

Early adopters—including:

• Renewable energy developers

• Grid and transmission operators

• Energy-storage providers

• Infrastructure investors and policymakers

are encouraged to explore hybridisation strategies that combine generation and storage, optimise grid connections, and deliver resilient, low-carbon power at scale.

With strong backing from the EIB, Cesce, and Iberdrola, the Tâmega Wind Hybridisation project signals a clear direction: Europe’s energy transition will be faster, smarter, and more secure when technologies work together.