Hydropower

Navaleo Pumped Storage Hydropower Project

An EU Project of Common Interest (PCI)

The Navaleo pumped storage hydropower project in Ponferrada, Castilla y León, Spain, is one of the country’s most advanced long duration energy storage developments. The project will deliver 535 MW of flexible capacity and more than eight hours of storage, strengthening Spain’s grid stability and supporting the integration of solar and wind energy. 

Navaleo is Alpiq’s first major hydropower project outside Switzerland, marking a significant milestone in our European growth strategy. Commercial operation is expected in the early 2030s. 

The European Commission has listed the project – CDR Navaleo (Central Depuradora Reversible) – as a Project of Common Interest (PCI), recognizing its strategic value for Europe’s energy transition. It has also received €35.3 million from the Recovery, Transformation and Resilience Plan (PRTR) of the Institute for Energy Diversification and Saving (IDAE), an agency part of the Ministry for Ecological Transition and Demographic Challenge (MITECO). 

The CDR Navaleo pumped storage project

The Navaleo pumped storage hydropower facility has been designed as a closed loop system, featuring two reservoirs that are not connected to natural river systems. This minimizes environmental impact, ensures controlled water management, and reduces stress on natural waterways. Moreover, the power plant will act as a water treatment facility, removing pollutants from the former mining activities. The project: 

  • Provides fast response flexibility to help balance intermittent renewable generation and improve overall grid resilience
  • With more than eight hours of storage capacity, helps integrate solar and wind generation: the power plant will pump water from the lower reservoir to the upper one when generation from renewable energies exceeds demand, storing the energy in form of water. When electricity requirements are high, it will turbine the water to generate electricity and meet demand peaks
  • Uses a closed loop design, minimizing impact on natural waterways.
  • Transforms a former mining site into a longterm clean energy asset.
  • Supports Spain’s National Energy and Climate Plan (PNIEC) and the EU Green Deal. 

CDR Navaleo is located in Ponferrada, Castilla y León, on the site of a former mining complex. This strategic location enables the transformation of industrial legacy land into a modern, sustainable energy asset.

Sustainable clean energy asset

CDR Navaleo is a cornerstone infrastructure project for Spain’s renewable energy integration. The plant will help to integrate solar and wind generation by shifting energy production from peak-output hours to periods of low renewable availability as well as support grid stability as the country accelerates its decarbonization objectives. 

Beyond its technical benefits, CDR Navaleo will transform a former mining site into a sustainable clean energy asset, turning industrial legacy into a positive contribution to the environment and the energy transition. 

The project will 

  • rehabilitate degraded mining land and improve water quality through treatment and reuse of mine drainage,
  • contribute to the integration of renewable energies into the electricity system,
  • create local jobs during construction and operation in an area impacted by abandoned mining activities  

The Spanish power system is undergoing rapid transformation with increasing renewable penetration. Pumped storage solutions such as CDR Navaleo are essential to: 

  • stabilize a system increasingly dominated by variable wind and solar,
  • reduce reliance on fossilfuelbased balancing resources,
  • ensure security of supply during peak events,
  • support the implementation of Spain's National Energy and Climate Plan (PNIEC) and EU Green Deal targets. 

The European Commission’s PCI designation further emphasizes the project's importance in strengthening European energy resilience.

Overview of the Navaleo site

Future location of the upper reservoir for the Navaleo project

Future location of the lower reservoirs of the Navaleo project

Plan and stages

The project is currently in an advanced stage of development. The current schedule is the following: 

  • 2026: Detailed engineering, procurement planning, site preparation.
  • 2027: Start of major construction works.
  • Early 2030s: Planned start of commercial operation.

Key documents

Documents required under the PCI framework (e.g., environmental impact assessments, permitting documentation, public consultation material) will be uploaded here as they become available.

  • Resolution of 29 July 2021 of the Directorate-General for Quality and Environmental Assessment on the CDR Navaleo Environmental Impact Assessment (EIA): Link
  • Permitting status updates: The water concession has already been granted (75 years).
  • EU PCI references:

Project partners

Alpiq has acquired the CDR Navaleo pumped hydro storage project in February 2026. The project was originally developed by Erbienergía, which will keep a participation and continue contributing local expertise.

Delivering a pumped hydro storage project of this scale within such a timeframe requires substantial project management and technical know-how.

Bernard Valluy, Head Project Management & Innovation

Facts & Figures

Plant type

Pumped storage power plant

Location

Castilla y León, Spain

Number of turbines

To be determined

Capacity

535 MW

Shareholding

99%

Commissioning

Early 2030s

Guided tours

Not available

Status

In development

Further information