The project concerns the modernisation and upgrade of existing pumped-storage hydropower assets.

The aim is to enhance and modernise the pumping capacity of existing pumped-storage facilities located in Comunidad Valenciana (Spain), Extremadura (Spain) and Vila Real District (North of Portugal).

The project mainly comprises new electromechanical installations at three existing pumped-storage assets that are already operated by the promoter under concession and is not expected to have significant environmental impacts. The project was screened out of the Environmental Impact Assessment (EIA) process by the competent authorities. For two of the three assets, the environmental authorities authorised slightly higher operating levels for the upstream reservoirs through decisions that do not require an assessment of impacts on Natura 2000 sites. The impacts of this small increase in reservoir levels were already assessed and disclosed during the original EIA procedures carried out when the projects were built. Most of the lots fall under Annex II of the EIA Directive and have been screened out of the EIA process. For the Portuguese pumped-storage asset, the decision of the Portuguese Environment Agency (Agência Portuguesa do Ambiente, APA) authorising the works and screening the project out of the EIA procedure was published on 13 March 2026. The environmental conditions applicable to the construction works were annexed to the decision. For the pumped-storage asset in Valencia Province, the Forestry Service of the Territorial Directorate issued a positive opinion on 23 April 2026. The resolution confirms that the proposed works are not expected to affect Natura 2000 sites. Where applicable, and in line with the risk-based approach set out in the EIB Group Environmental and Social Policy, compliance with the requirements of Directive 2011/92/EU on environmental impact assessment, as amended by Directive 2014/52/EU, Directive 2009/147/EC on the conservation of wild birds and Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora will be verified during appraisal.

The promoter has been assessed by the EIB as a private company that is not subject to EU rules on public procurement or concessions. However, if the EIB concludes during appraisal that the promoter is subject to EU public procurement legislation, the promoter will be required to comply with the applicable rules. For the Portuguese pumped-storage project, the main civil works contract was awarded to Cimontubo (Portugal) in March 2026, while the main electrical supply contract was awarded to Hitachi (Japan). For the pumped-storage project in Valencia Province, Siemens (Germany) and Hitachi’s Spanish subsidiary were awarded the electrical supply contracts, while the mechanical works contract was awarded to Milas Trillo (Spain). All other lots are still under tender.