Canary Islands Prepare for Comprehensive Energy System Revamp

The Canary Islands are on the brink of a significant transformation in their electricity supply system, as the government has announced the provisional results of a tender that will shape the future of energy in the region.

This pivotal decision marks the beginning of the most extensive overhaul of the electricity generation fleet in over two decades. The preliminary award highlights the roles of Disa, Satocan, and Endesa as key players in this new energy landscape, with the Balearic firm Sampol also included in the selected group.

With an investment exceeding €350 million, the initiative aims to install a total capacity of 2,427 megawatts. This ambitious project seeks to replace aging thermal facilities that are currently 13 years past their scheduled replacement date. The deterioration of these existing units, many of which have reached the end of their operational lifespan, has raised concerns about the reliability of the Canarian electricity system and increased warnings about potential blackouts. Reports from La Provincia indicate that this precarious situation was instrumental in prompting the Ministry to expedite a resolution.

Impact on All Islands

The planned renewal will affect all islands within the archipelago, although the extent of the efforts will differ based on the critical condition of each island’s electrical infrastructure. Gran Canaria and Tenerife bear the brunt of the outdated generation capacity, while La Gomera, El Hierro, La Palma, Fuerteventura, and Lanzarote also require significant upgrades to improve network stability during peak demand and unexpected failures.

The government’s strategy includes a framework for additional remuneration during the initial operational years, aimed at ensuring the recovery of investments that depend on medium-term regulatory stability. This approach is designed to prevent issues that have previously hindered projects, such as uncertainty regarding the profitability of infrastructure in non-mainland regions.

Challenges Ahead

Officials acknowledge that the rollout of the new units will be a lengthy and technically challenging endeavor. Factors such as the manufacturing of heavy machinery, logistical timelines for transporting equipment to island ports, and the necessity to adapt existing sites at already congested plants mean that no installations are expected to be operational before 2030. In the meantime, the Canary Islands will continue to rely on thermal units that have surpassed their useful life, leading to increasingly demanding and costly maintenance.

Despite these challenges, the provisional award signifies a crucial turning point for a system that has been in search of stability for years. The chosen companies are now required to submit further documentation, provide technical justifications, and finalize contract details for the award to become definitive. Once these steps are completed, the executive phase will begin, which will outline specific timelines for each island and a phased investment plan.

Establishing a New Energy Balance

This tender not only facilitates technological advancements but also sets the stage for a new energy equilibrium in the Canary Islands. The reliability of thermal supply will be essential for integrating a higher proportion of renewable energy sources without compromising system stability. The modernization efforts are expected to lower structural costs related to faults, fuel, and maintenance, while also improving the system’s responsiveness during extreme conditions.

The outcomes of this initiative will directly affect households, businesses, and government entities. The electricity supply in the geographically fragmented Canary Islands relies heavily on the dependability of these infrastructures, and their enhancement will play a crucial role in determining the resilience of the archipelago over the next decade.

Key points

• The Canary Islands are set for a major energy system overhaul with a provisional tender outcome announced by the government.
• Disa, Satocan, and Endesa are identified as key players in the new energy framework, alongside Sampol.
• The project involves an investment of over €350 million to install 2,427 megawatts of capacity.
• Many existing thermal facilities are 13 years overdue for replacement, raising concerns about potential blackouts.
• The renewal will vary by island, with Gran Canaria and Tenerife facing the most significant challenges.
• The implementation of new units is expected to take until at least 2030, as logistical and technical challenges arise.
• The initiative aims to create a more reliable energy supply while integrating renewable sources effectively.