EIB Group President Nadia Calviño and Spain’s Third Deputy Prime Minister and Minister for the Ecological Transition and the Demographic Challenge Sara Aagesen visit the works site of the Salto de Chira hydroelectric power plant promoted by Red Eléctrica, a key project for electricity security in the Canary Islands

• Chairwoman of Redeia Beatriz Corredor, Regional Minister of the Ecological Transition and Energy of the Government of the Canary Islands Mariano Hernandez Zapata, and President of the local government in Gran Canaria Antonio Morales accompanied Nadia Calviño and Sara Aagesen on their institutional visit, which took place today.
• Calviño and Aagesen both highlighted the progress made so far in the construction works for the project, which has received EIB financing and support from the European Regional Development Fund (ERDF).
• The Salto de Chira plant is a strategic initiative for the island and a cutting-edge project in the European energy sector. It involves the construction of a 200 MW pumped-storage hydroelectric power plant and a desalination plant.
• The power plant will strengthen the security of electricity supply, which is essential for isolated electricity systems such as those on islands, and will help to integrate renewable energy sources, directly benefiting people and businesses.

Good progress is being made in the construction works for the Salto de Chira hydroelectric power plant in Gran Canaria, which are being completed by Red Eléctrica. The projects is being co-financed by the European Investment Bank (EIB) and supported by the European Regional Development Fund (ERDF). In January, two work tunnels were connected – one of the most significant milestones in the works so far. The components needed to connect the dam in Soria and the desalination plant will pass through these two work tunnels.

This achievement was highlighted today during the official institutional visit, which was attended by EIB Group President Nadia Calviño, Spain’s Third Deputy Prime Minister and Minister for the Ecological Transition and the Demographic Challenge Sara Aagesen, Chairwoman of Redeia Beatriz Corredor, Regional Minister of the Ecological Transition and Energy of the Government of the Canary Islands Mariano Hernandez Zapata, and President of the local government in Gran Canaria Antonio Morales, among other representatives. The visit was also attended by the Acting Director of the European Commission Representation in Spain, Lucas González Ojeda.

This visit comes a few months after Red Eléctrica and the EIB signed an agreement for €300 million in financing for this strategic project, which will benefit the Canary Islands and Europe and help to meet the green transition and energy sovereignty objectives of the EU Member States. The project is also in line with the EIB Group’s strategic priorities for climate action and economic, social and territorial cohesion in Europe. During the visit, the EIB and Red Eléctrica announced the signing of the second tranche of the loan, which amounts to €150 million.

“Salto de Chira is a flagship project that will help to strengthen energy security and energy independence in the Canary Islands, which will have a positive impact on people, businesses and farming communities. This demonstrates that EIB investments reach every part of the country, helping to consolidate Spain’s position as the country of renewables and improving people’s everyday lives,” said EIB Group President Nadia Calviño.

Third Deputy Prime Minister Aagesen said, “It is exciting to see such a strategic and unique project materialise, with a design dictated by maximum respect for the environment, ensuring its integration into the landscape. It is an excellent demonstration of how, in these complex times of instability, Spain’s response remains clear and strong: to maintain the momentum of the green agenda and accelerate the energy transition.”

Chairwoman Corredor of Redeia wanted to “express her thanks for the visit and the fundamental support provided by the Spanish government and the EIB for a project that, through innovation, is paving the way for efforts to decarbonise and transform isolated electricity systems.” Corredor also highlighted “Red Eléctrica’s unwavering commitment to the Canary Islands and their green transition,” stressing that “for the transition to be properly implemented, it must reach all corners of Spain and Europe.”

On behalf of the government of the Canary Islands, Minister Zapata said, “Our archipelago has great natural resources to promote renewable energy, which must go hand in hand with developing storage infrastructure like this. This means that, as part of our islands’ energy transition, we can ensure that renewables reach 58% penetration by 2030.” Zapata also highlighted that “storage is a priority” – not only in Gran Canaria or El Hierro, but in all the islands where it can be installed, as it will “enable greater flexibility in the electricity system and reduce the cost of energy.”

Likewise, President of the local government in Gran Canaria Antonio Morales expressed his joy at “visiting the site again to see and show society the good progress being made for a project that is decisive for Gran Canaria to lead the energy transition in the Canary Islands and to meet more than half of the island’s energy needs with renewable energy sources.” Morales added that “the Salto de Chira project also entails the largest environmental intervention in a public space in the Canary Islands,” in reference to the regeneration works being carried out in the Arguineguín ravine.

Salto de Chira, a strategic project for the Canary Islands and Europe

Red Eléctrica is building the Salto de Chira pumped-storage hydroelectric power plant in order to improve system operation, ensure the security of energy supply, and further integrate renewable energy in Gran Canaria.

This project is at the forefront of innovation. It will use patented technology involving a system of two water reservoirs at different heights to make it possible to store and supply renewable energy according to the demands of the grid.

In addition, the project involves the construction of a seawater desalination plant to feed the stored water reserves that is also expected to have a positive impact on farming communities’ access to water for irrigation.

Salto de Chira is the first large-scale energy storage project in the Canary Islands to be used to operate the electrical grid. It will play an essential role in the system and provide fundamental support to ensure secure and reliable electricity supply, while providing a huge boost to the island’s environmental transition.

The investment is being made entirely in the Canary Islands, which is both a cohesion and an outermost region. In view of this, the investment is expected to have a positive impact on the local economy by boosting growth and local job creation.

Progress in the construction works

The infrastructure works being completed for the commissioning of the hydroelectric power plant have entered their third year. Both the desalination plant and the 220 kV double-circuit overhead line to be used to transport energy from the plant to the 220 kV Santa Águeda substation have been completed. The promoting company expects all the water piping works from El Perchel beach to the pumping station, which will feed the Soria reservoir, to be completed by the end of the year.

At present, efforts are focussed on making further progress on the underground section of the project, which constitutes over 90% of the total project. This includes the cavern, where the hydroelectric power plant will be located, and the various access tunnels, as well as works on the water circuit and the water intake for the Soria and Chira dams.

The EIB Group and energy security in Spain

In 2024, the EIB Group provided a record total investment of over €5 billion for energy security projects in Spain, more than for any other EU country. The EIB provides financing for the energy transition and to secure energy supply along the entire value chain. This includes projects for renewable energy generation, electricity distribution and transmission networks, electricity storage, energy efficiency, cleantech innovation and the production of parts required to generate renewable energy.

The Salto de Chira project will contribute to EU decarbonisation objectives and the EIB Group’s strategic priorities for climate action and economic, social and territorial cohesion. The project is also part of the EIB’s action plan to support the REPowerEU initiative to ensure energy security and reduce the European Union’s dependence on fossil fuel imports.

Background information

About the EIB

The European Investment Bank is the long-term lending institution of the European Union, owned by the Member States. Built around eight core priorities, it finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund, signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024, helping power the country’s green and digital transition and promote economic growth, competitiveness and better services for its people.

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