11 JUL 2024

Iberdrola España receives €45 million grant for the new reversible pumping station in Alcántara (Cáceres)

  • The project has obtained the best score for innovative storage projects and also the highest grant

  • Construction is expected to start in 2025 and create over 3,600 jobs

  • This initiative will enable reversible energy storage of 15 million kWh, equivalent to the average daily consumption of 4 million people

  • The project, making use of existing facilities, will optimise the management of water resources without affecting other Tagus river’s users

The Institute for Energy Diversification and Saving (IDAE by its Spanish acronym) has published the Final Decision approving the granting of €44.9 million to the project for the new Alcántara II reversible hydroelectric pumping station. This is thanks to the call for grants for innovative storage projects using reversible pumping within the framework of the Recovery, Transformation and Resilience Plan − Funded by the European Union − Next GenerationEU.

The project has been rated as "the best proposal in terms of economic viability and technical characteristics enabling the integration of renewables". It has obtained the largest grant per installed capacity, the highest total score, and has also achieved the best evaluation in externalities in criteria such as the impact of the project on the area, environmental aspects and impact on gender equality.

The new plant, which will be located in the municipality of Alcántara (Cáceres), will have an installed capacity of 440 MW, enabling reversible energy storage of 15 million kWh − equivalent to the average daily consumption of 4 million people and providing firmness to the electricity system of up to 35 hours with the machines at full load. 

This plant will be able to generate an additional 1,000 GWh annually using the same water resources as before − avoiding the emission of an estimated 355,000 tonnes of CO2 annually. The project will also contribute to decarbonising the electricity system through greater integration of non-manageable renewable solar and wind energy, providing the electricity system with greater capacity for adaptation and response. 

With regard to its design, the plant will use the reservoirs created by the existing dams, taking into account the important environmental and heritage conditions of the surroundings. This is why all the hydraulic circuits have been designed underground, including the plant, which has been designed in a well shaft. 

The new plant will connect the lower Cedillo reservoir and the upper Alcántara reservoir by means of a double underground hydraulic circuit 0.9 km long, and will use the difference in level between the reservoirs of up to 108 m thanks to two reversible turbines with a capacity of 220 MW. This "reversible" power station will be an extension of the existing hydroelectric system on the Tagus river, with no impact on the other users of the Tagus river water resources, as it will make "non-consumptive" use of the water resources of both reservoirs.

Improving the management and energy use of the Tagus River

The incorporation of this Alcántara II pumping project, in addition to the Valdecañas on-going pumping project, will make it possible to convert the stretch of the Tagus river between the Valdecañas and Cedillo dams (over 200 km of the Tagus riverbed) into an enormous reversible storage facility, making non-consumptive use of the water resource. One of the innovative aspects of this project is that it enables reversible operation in a stretch of river currently exploited conventionally by hydroelectricity, adapting to existing infrastructures.

Project status

The project has already had a grid access permit since November 2019 with satisfactory progress and with consultations on the Environmental Impact Study. Furthermore, the project is awaiting a favourable Environmental Impact Statement to be issued in the near future and is scheduled to start construction in 2025, with commercial operation in mid-2030.

When it comes to the environmental aspects of the project, the set of measures adopted to protect birdlife, terrestrial fauna, aquatic fauna and local flora stand out, having established a set of measures to improve biodiversity, or the use of recycled materials promoting the circular economy.

More than 3,600 jobs

The new plant will act as a driving force to meet the demographic challenge and the fight against depopulation, creating more than 3,600 direct and indirect jobs over its 5-year construction period, which translates into 409 direct jobs (full-time) during construction.

During the works, a large number of suppliers in the industrial value chain, many of them SMEs, will be required to be contracted, and a total of 74 letters of support have been received to date. In addition, in order to favour the work integration of the youngest people in the area, training plans will be carried out in two secondary schools and will facilitate the participation of students in internships.

Furthermore, due to Iberdrola España's strong commitment to diversity, equity and inclusion, the project will partner with the CESAL organisation to promote the work integration of people at risk of exclusion, as well as employment of people with disabilities through a collaboration programme with the ASINDI association based in the municipality of Alcántara. 

In addition to these measures, the development of 5 solar communities will also be promoted in the municipalities surrounding the project to allow families to benefit from a reduction in their electricity bills and access to renewable self-consumption − without having their own installation or making any type of investment.

Regarding the degree of innovation of this project, collaborations have been established with institutes and research centres that will participate in the project, including the Instituto Tecnológico de la Energía, the Universidad Politécnica de Madrid, the Centro de Investigaciones Energéticas, Medioambientales y Tecnológicas (CIEMAT), the Universidad de Extremadura and the Centro Ibérico de Investigación en Almacenamiento Energético (CIIAE) located in Cáceres.

Iberdrola España is currently working on improving hydroelectric pumping to increase energy storage capacity in the Tagus; the Santiago Sil - Xares pumping project is also progressing and the rehabilitation of Valparaíso is already in operation. The Tâmega pumped hydro complex in Portugal is fully operational with three power plants and three dams.

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