The European Investment Bank (EIB) has approved a €300 million loan to Red Eléctrica, a subsidiary of Redeia, to support the construction of the Salto de Chira hydroelectric power plant on the island of Gran Canaria. This facility, featuring a 200MW pumped-storage hydroelectric system and a desalination plant, is designed to strengthen the island’s electricity supply and provide backup power, enhancing energy security for local residents and businesses.
The Salto de Chira project will use a two-reservoir system to store and release energy, enabling Gran Canaria to utilize surplus renewable energy when demand is high. This facility will store energy generated from renewable sources, reducing reliance on fossil fuels and facilitating a greater share of renewable power in the local energy mix. An associated desalination plant will provide additional water resources, supporting irrigation needs for local farming communities.
“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,” said Jean-Christophe Laloux, Director General of Operations in the European Union at the EIB. “The project will improve electricity supply quality and security on the island using existing resources and reflects the EIB’s commitment to territorial cohesion and climate action, two of our strategic priorities.”
The EIB’s financing aligns with its objectives to support cohesion regions, such as the Canary Islands, and advance energy transition goals. Roberto García Merino, CEO of Redeia, emphasized the role of energy storage in supporting renewable integration: “Storage will be one of the key elements in the energy transition, providing flexibility and manageability to the electricity system to integrate large amounts of renewable energies, thus contributing to electrification and access to renewable energy, which is especially important for an electricity system like the Canary Islands, which is isolated and therefore more vulnerable.”
Once operational, the Salto de Chira facility will enable Gran Canaria to improve the reliability of its electricity grid, particularly as it shifts toward a more renewable-based system. The pumped-storage design allows water to be cycled between two reservoirs, generating hydroelectric power during high-demand periods. Excess renewable energy will be used to pump water from the lower reservoir, Soria, to the upper reservoir, Chira, for future electricity generation when demand rises or renewable output falls. The desalination plant will assist in maintaining reservoir levels, while also providing irrigation water for the local agriculture sector.
The EIB has been active in supporting energy security projects across Europe. In 2023, it provided over €21 billion in financing to secure Europe’s energy supply, with €4.5 billion dedicated to projects in Spain focused on renewables, efficiency, grid infrastructure, and energy storage.
The Salto de Chira project also aligns with the REPowerEU plan, the EU’s strategic push to reduce dependence on fossil fuel imports. By 2027, the EIB expects to mobilize over €150 billion for clean energy projects, supporting Europe’s goal of a sustainable, resilient, and climate-neutral energy system.
