The European Investment Bank (EIB) announced a substantial loan of €300 million to facilitate the construction of the Salto de Chira pumped-storage hydroelectric power plant located on Gran Canaria. The EIB hydroelectric project is a game changer for the island.
Developed by Red Eléctrica, a subsidiary of Redeia, this project combines hydroelectric power with a seawater desalination plant.
It aims to strengthen energy security and promote renewable resource integration in the Canary Islands. Another step the EIB takes towards hydroelectric energy prominence.
The facility will have a 200 MW capacity and 3.5 GWh of energy storage for renewable energy management, helping to minimise energy waste during high production periods and balance the energy supply when demand increases. With this EIB investment, the hydroelectric facility is expected to perform optimally.
It will also be crucial in stabilising Gran Canaria’s isolated energy system.
The Salto de Chira project includes seawater desalination to enhance agricultural water availability by supplying the plant’s reservoirs.
It will also provide a supplementary irrigation source for nearby farms, strengthening local resilience through EIB hydroelectric endeavors.
Also read: EIB and Caribbean Bank Partner for €100M Climate Investment
Jean-Christophe Laloux, EIB’s Director General of Operations in the European Union said, “We are delighted to join forces with Red Eléctrica to support the construction of the Salto de Chira hydroelectric power plant. This project is key to ensuring energy autonomy and driving the green transition in Gran Canaria.” Their cooperation underlines the importance of the EIB hydroelectric plan.
The plant’s storage system will utilize two current reservoirs, Chira and Soria, for renewable energy storage.
When renewable generation is high, excess energy will pump water from the Soria reservoir to the higher Chira reservoir.
This process stores energy for periods of peak demand when renewable sources might fall short, showcasing the EIB’s hydroelectric innovations.
Also read: EIB Approves €5.8 Billion for Infrastructure and Sustainable Development
This design aims to enhance the reliability of Gran Canaria’s energy grid for consistent power delivery to residents and businesses.
The initiative aligns with the decarbonisation goals of the European Green Deal supporting the EIB’s REPowerEU initiative to improve energy security and reduce fossil fuel dependence.
In 2023, the EIB Group committed over €21 billion to projects enhancing European energy security, which included €4.5 billion allocated to Spain for renewable energy, energy efficiency, and storage advancements.
To support these objectives, the EIB has set aside €45 billion for REPowerEU initiatives targeting strategic green technologies. These include EIB hydroelectric projects aimed at bolstering energy security.
This funding will also focus on sectors striving for net-zero emissions and recycling essential raw materials by 2027, with EIB hydroelectric initiatives playing a crucial role.
Additionally, this expanded funding projects to generate over €150 billion in investments, propelling Europe toward energy independence and sustainability.