Multimillion-dollar investment will fuel game-changing upgrades at innovative power plant

May 5, 2025

Devdiscourse reported that the European Union Investment Bank (EIB) signed two green loan agreements, totaling €108 million ($122 million) in support of Iberdrola’s Valdecañas hydroelectric complex.

This funding, which includes a €50 million ($56.5 million) loan from EIB’s funds and €58 million ($65.5 million) through the Regional Resilience Fund will go toward upgrades and expansion. Such enhancements include reversible pumped-storage technology — water can be pumped into an upper reservoir when electricity is at a surplus level or later released to create power at peak times.

The complex will have a combined hydroelectric capacity of 225 megawatts with a hybrid 15-megawatt battery system that can store 7.5 megawatt-hours of electricity. As a result, the maximum pumping capacity will reach 313 megawatts.

The enhancements can reduce polluting gases by reducing reliance on dirty fuels. As a result, health-related risks from air pollution, such as childhood asthma and certain cancers, also decrease.

Like solar power, which is always available as long as the sun is in the sky, hydroenergy is also reliable as long as the water is flowing. Luckily, this facility’s water will operate in a closed-loop circuit that conserves natural resources by constantly recycling the same water between reservoirs.

Local economies benefit from sustainable actions.

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Iberdrola’s Valdecañas hydroelectric complex is in an area with below-average EU incomes that’ll get a boost from those megawatts of upgrades. The site will create 165 direct jobs and 500 indirect ones.

Further away in the United States, Kentucky will benefit from 1,000 permanent United Steelworkers jobs and 5,500 construction jobs thanks to an investment in carbon-free aluminum — a metal with infinite life recycling — production.

When you compare the future outcomes of the environment, healthier and more employed people, clean energy support continues to be a financially smart investment for businesses and governments. Many sustainable energy companies have outperformed dirty energy stocks — per the Carbon Collective, those stocks had a decent 10-year return with a 7.0% AAR, while renewable energy companies generated an 11.1% return over the same period.

“For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol in a release.

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There have been ups and downs in the renewable energy transition, from greenwashing controversies to misinformation about climate warming. However, sustainable energy’s momentum — and the overall circular economy it’s a part of — remains strong and makes sense for a cleaner and cooler planet.