The European Investment Bank (EIB) has committed a EUR 300 million (USD 323.3 million) loan for the construction of the Salto de Chira pumped-storage hydroelectric project in Spain's Canary Islands, as announced by Spanish power grid operator Red Eléctrica de España (REE).
Located on the island of Gran Canaria, the project utilizes existing reservoirs, Chira and Soria, and involves the construction of a new 200-MW hydro power station situated between the upper Chira dam and the lower Soria dam. This facility will have a storage capacity of 3.5 GWh, allowing it to absorb excess renewable energy generated on the isolated island.
Additionally, the project includes the establishment of a seawater desalination plant, which will provide water for storage, as well as necessary connection infrastructure. The overall scheme is valued at over EUR 400 million.
In 2023, REE also received EUR 90 million in aid from the European Regional Development Fund (ERDF) for the Salto de Chira project, further supporting its development.
