Canary Islands Launch Second Tender for 700 MW of Electrical Power

The Ministry aims for a more efficient system and easier renewable integration, modifying criteria from the previous tender.

Abstract representation of renewable energy integration into the Canary Islands' electrical system, featuring wind turbines and solar panels against a volcanic landscape.
IA

Abstract representation of renewable energy integration into the Canary Islands' electrical system, featuring wind turbines and solar panels against a volcanic landscape.

The Ministry for Ecological Transition has launched a second public tender for the allocation of 700 megawatts of electrical power in the Canary Islands, aiming to improve system efficiency and facilitate the integration of renewable energies.

Following the recent award of the tender for the renovation of the conventional electricity generation park, the Government of the Canary Islands has pushed for a new process. The demand focuses on improving the penetration of renewable energies on islands like Gran Canaria, as the previously approved projects did not facilitate this integration.
The Secretary of State for Energy, Joan Groizard, announced the initial public consultation for this second tender. In a meeting with the Minister of Ecological Transition and Energy of the Government of the Canary Islands, Mariano Hernández Zapata, the good rapport between both administrations was highlighted to address generation deficits and renew power plants with units up to 50 years old.
The Ministry for Ecological Transition and the Demographic Challenge (Miteco) has incorporated the concerns received from the Canary Islands, particularly regarding decarbonization and the increased contribution of clean energy sources.
Currently, renewables account for 21% of the megawatt-hours generated in the Archipelago's electrical systems, despite reaching 30% of installed capacity. The lack of storage and the obsolescence of the thermal generation park limit the entry of clean energy.
The processing of a royal decree project to regulate energy storage in non-mainland territories has begun, aiming to facilitate renewable integration, provide greater flexibility to the electrical system, and reduce fossil fuel use.
Spillover energy from wind farms and photovoltaic plants has increased to 16%, partly due to the entry of more renewable projects. The tender awarded in November included renovations of machines with limited flexibility to adapt to decarbonization demands.
The new tender, with 707.5 megawatts to be allocated, will provide more efficient support for renewable generation. The new machines will be less polluting and more efficient.
Project selection will be based on technical, economic, and environmental criteria, including cost savings, carbon emissions (maximum 550 grams of CO2 per kWh), and location. The age of generation units will be penalized, and a minimum of 5% renewable fuel usage will be required.
The public consultation period for the resolution proposal will be open until August 5th. The 820.5 megawatts to be tendered, of which 707.5 are for the Canary Islands (320 MW for Gran Canaria, 230.5 MW for Tenerife-La Gomera, 95 MW for Lanzarote-Fuerteventura, 52 MW for La Palma, and 10 MW for El Hierro), will be added to the 971 previously awarded.
No actions are expected to be completed before the end of 2030. The new tender could allow for the entry of new operators, ending decades of monopoly by Endesa, and confirming the entry of Disa, Satocan, and Sampol into electricity generation.
The meeting also addressed a Royal Decree-Law pending validation, which includes measures such as the elimination of the tax on electricity generation. According to Joan Groizard, this measure will lower electricity bills for consumers and provide a boost to the renewable energy sector.