Alpiq acquires Navaleo pumped storage project

Swiss energy company Alpiq has acquired the Navaleo pumped hydro storage project in Castilla y León, Spain, from Spanish developer Erbienergía. The acquisition, whose financial terms remain undisclosed, marks a strategic expansion of Alpiq's renewable energy portfolio outside its domestic Swiss market. Scheduled to commence operations in the early 2030s, this facility will offer 535MW of storage capacity, providing up to eight hours of energy flexibility to the Spanish grid.

The Navaleo project, constructed on a former mining site, is notable for its closed-loop design and dual functionality as both an energy storage site and a water treatment facility. It has been granted a 75-year water concession and has been designated by the European Commission as a Project of Common Interest, underlining its importance in bolstering European energy security. Erbienergía will retain a stake and continue to be involved in the design phase, while Alpiq looks to optimise the plant configuration prior to construction.

For Alpiq, the acquisition represents a significant step in its strategy to increase its portfolio of flexible energy assets across Europe. "With this investment, Alpiq builds on its long-standing expertise in pumped hydro storage and reinforces its role in delivering flexible energy for Europe’s transition," stated Amédée Murisier, Head of Business Division Assets at Alpiq. The company is aiming to support grid stability and the integration of renewable energy sources in Spain’s evolving energy landscape.

This move comes amid Spain's ambitious renewable energy targets, which have heightened the need for large-scale storage solutions to mitigate the variability of solar and wind power generation. Alpiq, which has been active in Spain for 25 years, is strengthening its position in this expanding market by enhancing its capacity to provide adaptive energy solutions. The company's latest acquisition is aligned with broader industry trends and regulatory encouragement for projects that support a transition to renewable energy.

Looking ahead, the next key milestones for this project include optimising the plant design and securing necessary permissions before embarking on construction. As the European energy market continues to evolve, projects like Navaleo are poised to play a crucial role in ensuring energy security and facilitating the continent's shift towards sustainable power sources.