Iberdrola Generación, S.A. has entered into a concession agreement with the Portuguese State, represented by the Agencia Portuguesa do Ambiente, according to which the company will have the right to build and exploit the 1,158MW Alto Tâmega hydroelectric complex.
The total investment is estimated at €1.2 billion (US$1.63 billion).
The 1,158MW hydroelectric IPP project, which is one of the largest hydroelectric projects in Europe in the last 25 years, comprises the hydroelectric infrastructures of Gouvaes, Alto Tâmega and Daivões dams in northern Portugal. Once operational the project will be able to generate 1,766 GWh a year.
The company was awarded the project in 2008.
The project will be built in various stages, and will be completed in a maximum of nine years. Works are expected to begin in the first quarter of 2015, the heaviest investment taking place from 2018 to 2020.
The new installations will be located in close proximity to Galicia, where there are plans to upgrade electricity interconnections between Spain and Portugal, and near the Duero and Sil hydro power stations in Spain.Iberdrola has designed a plan for the Alto Támega hydroelctric system that includes: Construction of four dams, two pumping stations, two pure turbine stations; They will have a generating capacity of almost 1,200 megawatts (MW) and achieve annual production of around 2,000 gigawatt hours (GWh), quivalent to 3% of Portugal's electricity consumption.