EIB approves €300m loan for hydroelectric plant

The European Investment Bank (EIB) has approved a €300 million loan for the construction of the Salto de Chira pumped-storage hydroelectric power plant in Gran Canaria, one of Spain’s Canary Islands, developed by Red Eléctrica, a subsidiary of Redeia.

With an installed capacity of 200 MW and an energy storage capacity of 3.5 GWh, the plant will utilise two reservoirs at different heights to store and deliver renewable energy based on electricity demand.

This innovative project aims to enhance energy supply quality and security on the island while facilitating the integration of renewable sources. Additionally, it includes the construction of a seawater desalination plant, which will support local farming communities by improving access to irrigation water.

Jean-Christophe Laloux, EIB Director General of Operations in the EU, emphasised the project’s role in promoting energy autonomy and driving the green transition in Gran Canaria.

This investment is part of the EIB’s broader commitment to sustainability and economic cohesion in the region, as it aims to accelerate the decarbonisation objectives of the European Green Deal and support the REPowerEU initiative for energy security.

Attribution: The European Investment Bank (EIB)

Subediting: M. S. Salama