The pumping plant expansion project, known as “AGUAYO II” in Cantabria, is one of the latest initiatives set out in the Strategic Plan in our commitment to renewable energies. The project can increase the installed capacity of the hydroelectric plant by 1 GW to a total of 1.4 GW, making it the second largest facility of this kind in Spain. The AGUAYO II project has obtained seal PCI: 1-18 - Electricity Storage within the 1st List of Projects of Common Interest and Projects of Mutual Interest, thus demonstrating that its contribution is key for the EU's energy grid.

One of the key aspects of the project is its compatibility with the environmental conservation of the surroundings. The AGUAYO expansion combines greater efficiency in generation from renewable sources with an underground installation without impact to the landscape, providing an environmentally sustainable solution.

This project, which is in the processing phase, is expected to be launched by the end of 2030 and together with the large portfolio of services that we have developed in renewable energy, sustainability, and the circular economy, will help us reach our goal of net zero emissions by 2050.

Strengths

• Mature technology and high efficiency. Pumped hydro storage is well-established and proven, with exceedingly high efficiency in converting the kinetic energy of water into electricity. This maturity translates into reliability and high performance, minimizing technical risks.
• High flexibility and availability. Pumped hydro storage plants offer high flexibility, allowing for rapid adjustments in energy production to meet fluctuating electricity demand. This capability enhances grid stability and reliability, especially during peak periods or when integrating intermittent renewable energy sources.
• Long lifespan. Hydroelectric installations are designed to operate for several decades, offering a durable and stable energy solution. This extended lifespan reduces the need for frequent investments in new energy infrastructure. On the other hand, the long lifespan allows the initial investment to be amortized over an extended period.
• Implementation of RHP "AGUAYO II". The project is well-integrated with the development of the regional electricity grid. It has been included in the National Plan for the Development of the Electricity Transmission Grid 2015-2020 and the Electricity Transmission Grid Development Plan 2021-2026. It also has an access feasibility report from the Spanish electricity Transmission System Operator, Red Eléctrica de España (REE).
• Operational synergies. The presence of an operational pumped hydro storage on-site facilitates the integration and operation of the new facility. Leveraging existing infrastructure can lead to cost savings and operational efficiencies.
• Social acceptance and government support. The project benefits from high social acceptance within the municipality and the region, which favors its implementation and reduces potential local resistance or conflicts.
• Support from regional and national bodies. The project has the necessary support for its deployment on a municipal, regional, and national level.
• Experienced personnel. Our personnel have decades of experience operating hydropower plants, including pumped storage, ensuring high levels of competence and operational efficiency.
• Favorable environmental indicators. Hydroelectric power has the lowest impact on the ozone layer, the highest Energy Returned on Energy Invested (EROEI) ratio, the lowest pressure on mineral resources, and one of the lowest water footprints during construction and manufacturing.
• Lower environmental impact and reduced costs. There is no need to build new reservoirs as existing ones can be used, minimizing environmental impact and significantly reducing the required investment.
• EU leadership in research and development. The European Union is a leader in scientific research, technological innovation, export, and market development in the hydroelectric sector. This leadership ensures access to cutting-edge technologies and best practices, enhancing the project's potential for success and future technological improvements.

Opportunities

• Export potential and European Industry Development. The EU's technological and hydroelectric generation capabilities have significant export potential. This potential not only enhances Europe’s position as a leader in the global energy market but also contributes to the development and growth of the European industrial sector. By tapping into international markets, Europe can bolster its technological leadership, stimulate economic growth through trade, and support the expansion of its hydroelectric industry.
• Rural and decentralized electrification. Pumped Hydro storage is attractive for rural and decentralized electrification projects, offering reliable and sustainable energy. This can help improve energy access, contributing to broader rural development goals.
• Creation of employment in rural areas. Hydroelectric projects can generate significant employment opportunities in rural areas, contributing to local economic development and community stability. The AGUAYO II project is estimated to create direct employment for up to 1,000 people.
• Clean energy. Pumped Hydro Storage is a clean energy source that is highly efficient and does not emit direct harmful gases, toxic emissions, or cause acid rain. In a net zero emissions power generation system, the project’s clean energy credentials are particularly valuable. While there may be some CO₂ emissions during the construction and operational phases, these are offset by the project's commitment to carbon neutrality, as outlined in the Environmental Impact Statement.
• Hybridization with other energy technologies. Combining hydroelectric power with other energy technologies could optimize both energy production and storage. This hybrid approach could improve overall system efficiency, reliability, and resilience, making the energy grid more adaptable to varying conditions.