The Spanish government has commissioned Red Eléctrica de España to develop a pumped hydroelectric plant in Güímar, Tenerife, set to start operations in the middle of the next decade. The initiative aims to support the decarbonisation of the energy systems in Tenerife and La Gomera.
Joan Groizard, Secretary of State for Energy, announced at a press conference that the project represents an investment of over €1 billion, expected to save approximately €200 million annually in electricity generation costs. Groizard emphasised that the investment would be recouped in just over five years and noted the long lifespan of the infrastructure.
This new plant will help incorporate more renewable energy while reducing dependence on costly fossil fuels. Groizard stated that it may cover up to a third of Tenerife’s electricity demand by storing surplus electricity generated from wind and solar farms as water in reservoirs, which can be released to generate energy when needed.
The Güímar facility will function similarly to the Chira plant currently under construction in Gran Canaria, providing 200 to 220 megawatts of peak power with around 16 hours of storage capacity. Groizard described it as a significant battery for the region’s energy supply.
The agreement activates Red Eléctrica’s mandate to undertake engineering work and submit the project for environmental evaluation to the Canary Islands’ authorities. Meanwhile, the government will define the financing structure throughout the year.
Groizard clarified that the timeline for project approval and construction is estimated at around ten years, but by the middle of the decade, Tenerife will have its reversible pumping system, with Gran Canaria set to follow soon after.
