The European Commission has awarded nearly €650 million from the Connecting Europe Facility (CEF) to 14 cross-border energy infrastructure projects aimed at strengthening security of supply, boosting renewable energy integration, and improving the interconnection of Europe’s electricity systems. The call for proposals – linked to the first list of Projects of Common Interest (PCIs) and Projects of Mutual Interest – exceeded the initial €600 million budget.
Of the total funding, approximately €470 million has been allocated to six electricity infrastructure projects, including smart grid initiatives.
The largest single grant has been awarded to Spain: €180 million for the Aguayo II project, a pumped-storage hydroelectric plant designed to increase energy storage capacity and support renewable energy integration.
Repsol will develop the project as an expansion of the existing San Miguel de Aguayo facility in Cantabria. The project includes the construction of new underground water pipelines and the installation of four reversible turbine units, each with a capacity of 250 MW. The plant itself will be built underground, inside a mountain, and will make use of existing reservoirs.
According to Repsol, Aguayo II will become the second-largest hydroelectric plant in Spain and the third-largest in Europe. With an additional 1 GW of capacity, the facility’s total installed capacity will reach 1.4 GW, with an estimated annual production of 2,000 GWh. The project requires an investment of €900 million and is scheduled to begin operations by the end of 2030.
