EIB extends EUR-300m loan for pumped-storage hydro project in Spain

The European Investment Bank (EIB) has agreed to provide a EUR-300-million (USD 323.3m) loan towards the construction of the Salto de Chira pumped-storage hydroelectric project in Spain’s Canary Islands, Spanish power grid operator Red Electrica de Espana (REE) announced on Tuesday.

REE has been building the complex on the island of Gran Canaria since early 2022, taking advantage of the existing reservoirs, Chira and Soria. With a new 200-MW hydro power station built between the upper dam Chira and the lower dam Soria, the complex will be able to store 3.5 GWh, absorbing excess renewable electricity in the isolated Atlantic Ocean island.

The project also includes the construction of a seawater desalination plant, which will contribute water for storage, and connection infrastructure. The whole scheme is valued at over EUR 400 million.

REE last year secured EUR 90 million in aid from the European Regional Development Fund (ERDF) for the Salto de Chira project.

(EUR 1.0 = USD 1.078)

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