BAKU, Azerbaijan, January 16. 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, the bank said, Trend reports.
The facilities will have a combined capacity of 274 megawatts (MW), enough to supply clean energy to around 400,000 people, and will be integrated into Iberdrola’s Tâmega pumped storage hydropower complex — also known as the “Tâmega gigabattery.” The project marks Portugal’s first hybrid connection between wind and pumped storage hydro and is among the country’s largest energy initiatives.
The EIB loan is guaranteed by Spanish export credit agency Cesce, marking the second EIB-backed green project with Iberdrola supported by Cesce, following the Windanker offshore wind farm under construction in Germany’s Baltic Sea.
Hybridisation for cleaner, more efficient energy
The project, known as Tâmega Wind Hybridisation, has already installed its first wind turbine. It will connect the two new wind farms with three existing hydropower plants — Gouvães, Daivões and Alto Tâmega — along the Tâmega River near Porto.
By sharing grid connection infrastructure, the hybrid system optimises renewable energy integration, reduces environmental impact, and reinforces the Tâmega System as a key anchor for Portugal’s energy transition.
The project supports national and EU climate goals by boosting clean energy in the grid, reducing carbon emissions, and cutting dependence on fossil fuels. It aligns with the EIB Group’s 2024-2027 Strategic Roadmap, the Climate Bank Roadmap Phase 2 (2026-2030), and the REPowerEU initiative to strengthen European energy security.
Located in Portugal’s Norte region, the investment also promotes economic, social and territorial cohesion — a core EIB priority. Nearly 50% of EIB financing in the EU goes to cohesion regions, and almost 60% of its annual investments target climate action and environmental sustainability.
The EIB, owned by EU member states, provides long-term financing to projects supporting EU policy objectives, including climate action, digitalisation, security, cohesion, agriculture, social infrastructure, and sustainable economic growth.