EIB Backs Gran Canaria’s Energy Security with €300 Million Loan for Salto de Chira Hydroelectric Project

EIB Backs Gran Canaria’s Energy Security with €300 Million Loan for Salto de Chira Hydroelectric Project

(IN BRIEF) The European Investment Bank (EIB) has approved a €300 million loan to help Red Eléctrica construct the Salto de Chira pumped-storage hydroelectric plant on Gran Canaria. This innovative project integrates a 200 MW power plant with a desalination facility, providing the island with a more resilient electricity system. Using two reservoirs, Chira and Soria, at different altitudes, Salto de Chira will store surplus renewable energy and release it to meet demand, helping reduce fossil fuel dependence and ensuring a stable power supply. Additionally, the desalination component will support local agriculture. Aligned with the EU’s REPowerEU initiative, the project furthers the EIB’s commitment to sustainable energy, regional development, and Europe’s energy security.

(PRESS RELEASE) LUXEMBOURG, 30-Oct-2024— /EuropaWire/ — The European Investment Bank (EIB) recently approved a significant €300 million loan to support the construction of the Salto de Chira pumped-storage hydroelectric plant on Gran Canaria, a project led by Red Eléctrica, a subsidiary of Redeia. EIB highlights the strategic importance of the project in enhancing Gran Canaria’s renewable energy infrastructure, providing much-needed energy storage and bolstering electricity supply on the island. The Salto de Chira facility combines a 200 MW hydroelectric power plant with a seawater desalination plant, offering a cutting-edge solution to energy and water management on the island.

The project utilizes two reservoirs, Chira and Soria, at different altitudes to store and release renewable energy as needed. By capturing surplus renewable power during low-demand periods and generating electricity when demand is high, this system aims to stabilize the grid, reduce fossil fuel reliance, and promote the integration of renewable sources into Gran Canaria’s energy system. The desalination component will help meet local water needs, including those of agricultural communities, by supplying irrigation water from its reserves.

EIB Director General of Operations for the European Union, Jean-Christophe Laloux, expressed enthusiasm for the partnership with Red Eléctrica, noting the project’s potential to fortify energy autonomy and drive sustainability in the Canary Islands. He emphasized the EIB’s alignment with EU cohesion and climate action goals, noting that the initiative exemplifies the bank’s commitment to economic and social development in Europe’s outermost regions.

Redeia’s CEO, Roberto García Merino, underscored the critical role of storage systems like Salto de Chira in advancing renewable energy adoption. He remarked that the plant will add essential flexibility to the Canary Islands’ isolated grid, facilitating renewable integration and enhancing energy resilience. As the plant helps replace fossil fuels with renewables, it will also support the European Green Deal’s decarbonization objectives and align with the EIB’s REPowerEU agenda to ensure Europe’s energy security and reduce fossil fuel dependence.

In operation, Salto de Chira will harness renewable energy by transferring water between the upper and lower reservoirs, with energy generated as water cascades down to meet demand. The EIB’s significant contributions to Europe’s energy security reached over €21 billion in 2023, of which €4.5 billion was dedicated to Spain, supporting projects that drive renewable energy, improve efficiency, and expand storage capacity. In addition, the EIB’s commitment to the REPowerEU initiative includes a planned €45 billion in financing by 2027 to accelerate the EU’s transition away from fossil fuels and foster net-zero carbon technologies.

The EIB’s continued investment in projects like Salto de Chira underlines its commitment to sustainable energy and regional development, fostering job creation and economic growth in areas such as the Canary Islands, where reliable energy infrastructure is crucial for resilience and progress.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the EIB and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

Red Eléctrica

Red Eléctrica is the sole transmission agent and operator of the electricity system in Spain. Created in 1985, it is the first TSO in the world, being the first company dedicated exclusively to the operation of the electricity system and the transmission of electricity; a model currently implemented in 22 of the 27 countries of the EU.

A subsidiary of Redeia, manager of essential electricity and telecommunications infrastructures, Red Eléctrica’s mission has always been to guarantee a safe and quality electricity supply and to develop a reliable electricity transmission grid to provide a service that is essential for households, companies and public services. It is now also a fundamental pillar of Spain’s ecological transition process, developing the grids necessary for this transformation and operating the system for an efficient and safe integration of renewable energies.

Media Contact:

Maite Cordero
m.corderomunoz@eib.org
+34 606 66 82 62

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SOURCE: European Investment Bank