Repsol to expand Aguayo hydroelectric plant in Cantabria with over €720M investment

Repsol is committing over €720 million to double the Aguayo hydroelectric plant's capacity in Cantabria, Spain, to 1,014 MW for turbination and 1,181 MW overall. This development project, announced on 2026-03-10, positions Repsol to significantly expand its renewable electricity generation capabilities within the Iberian Peninsula. The investment targets a substantial increase in dispatchable power, crucial for grid stability as Spain integrates more variable renewable energy sources. Doubling the existing plant's output through Aguayo II provides Repsol with enhanced operational flexibility and a robust asset for energy storage, leveraging established hydro infrastructure in Cantabria. This move allows Repsol to capitalize on Spain's energy transition policies by developing a large-scale, long-life asset. Repsol, as an integrated energy company actively investing in renewable energy and electricity, strengthens its clean energy portfolio with this Aguayo II project. The Ministerio para la Transición Ecológica, the Spanish government ministry responsible for national policies on climate change and energy transition, participates as a partner, signaling governmental support for large-scale hydro development in Spain. While the Comisión Europea is listed as a lender, its role as the executive body of the European Union aligns with broader EU objectives to support sustainable infrastructure and energy independence across its member states. This €720 million development in Cantabria reflects a concerted effort by Repsol, the Spanish government, and European financial backing to accelerate Spain's energy transition goals through proven hydro technology.