Abreu Advogados advises on the construction of Portugal’s largest wind-hydro hybridization project

Abreu Advogados provided legal advice to Iberdrola on the development of the Tâmega Electro-Producer System (SET), one of the most significant renewable energy infrastructure projects carried out in Europe in recent decades, representing an investment of around EUR 1.5 billion.

The project, located in northern Portugal, comprises three hydroelectric power plants and now a wind farm, combining hydroelectric generation, wind energy and storage in a single hybrid infrastructure. This solution enables the same grid connection to be shared, reducing connection costs, accelerating the integration of renewable sources and minimizing environmental impact.

Abreu Advogados’ team was led by Manuel Andrade Neves, coordinator of the Public & Environment Law practice area, with the close involvement of Tiago Corrêa do Amaral, who has more than 15 years of experience advising on energy sector projects. A multidisciplinary team of more than 30 lawyers from various practice areas was also mobilized, including regulatory, tax, corporate, real estate, structured finance and litigation.

In relation to the SET, Abreu Advogados’ work covered all critical phases of the project, from preparing the bid for the concession tender in 2008, through engagement with public authorities such as the Directorate-General for Energy and Geology, the Portuguese Environment Agency, the Institute for Nature Conservation and Forests, municipalities and grid operators, to monitoring contractual performance and the implementation of the social action plan.

As part of the implementation of the project, Abreu Advogados also assisted with around 7,500 expropriation proceedings required for the acquisition of approximately 3,100 plots of land, corresponding to around 1,350 hectares of public and private land, which were essential to the construction of the associated infrastructure, including power lines. In relation to the wind hybridization component, Abreu Advogados was also involved from the outset in defining the legal strategy, in a legal framework that was still incipient at the time, and subsequently in the licensing of the wind farms, particularly during the complex environmental licensing process, working closely with the above-mentioned public authorities.

“This project demonstrates how legal innovation can unlock concrete solutions for the energy transition. The hybridization of renewable technologies, combined with the efficient use of grid connection infrastructure, represents a decisive step towards strengthening the security, flexibility and sustainability of the national electricity system,” says Manuel de Andrade Neves.

The Tâmega Electro-Producer System has also played a strategic role in Portugal’s energy transition, contributing to the closure of the country’s last coal-fired power plants and to strengthening the storage capacity and flexibility of the electricity system. The project increases Portugal’s pumped-storage capacity by around 30% and constitutes a scalable model for future hybrid renewable energy systems in Portugal and across Europe.