PROJECT ESCUDO ENERGY STORAGE

The project consists in the financing of the expansion of a pump hydro plant in Cantabria with a resulting total installed capacity of 1.4 GW.

The Project contributes to increasing energy storage capacity in Spain by delivering long duration pumped storage capacity in a system facing rapidly rising shares of variable renewables and structural flexibility needs. It will help (i) reduce CO2 and other emissions from the power sector, (ii) enable the integration of high shares of wind and solar generation, and (iii) improve power quality and support security of electricity supply. The project aligns with the Spanish National targets on renewables, climate and energy storage. The project will entirely take place in EU Cohesion Priority Regions (Transition Region). The project conforms with Article 309 point (c) common interest of the Treaty on the functioning of the European Union. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation and pollution prevention and control.

The project falls under Annex I of the EIA-Directive (2011/92/EU, as amended by 2014/52/EU). The project has undergone an EIA process which included extensive public consultation initiated in 2011. The process was completed in 2020, with the issuance of the environmental permit. The process concluded that the project has no impacts on Natura 2000 areas. The main environmental impacts associated with the project concern the biodiversity, aquatic fauna and the water quality in the lower reservoir. The environmental conditions and the foreseen mitigation and compensatory measures are defined in the Declaración de Impacto Ambiental (DIA of 27/05/2020 extended until 17/06/2026) and will be appraised by EIB. The compliance of the project with applicable legislation (mainly Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC, Habitats Directive 92/43/EEC, and the Water Framework Directive (WFD) 2000/60/EC) will be further verified during appraisal.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would require the promoter to apply those rules. The construction works are under procurement following applicable national and EU regulations.