Hydroelectric Plant Approved in Güímar with £1 Billion Investment
SANTA CRUZ DE TENERIFE, 14 July 2026 – The Spanish Cabinet has greenlit the construction of a pumped hydroelectric plant in Güímar, assigning Red Eléctrica (REE) to oversee the project. The investment is expected to reach around £1 billion.
Ángel Víctor Torres, the Minister for Territorial Policy and Democratic Memory, stated that this approval marks a significant step forward, asserting that there is “no turning back now.”
The project, pursued by both the central government and the Canary Islands government for approximately seven years, aims to aid the island’s decarbonisation efforts. It aligns with similar initiatives in Gran Canaria’s Chira-Soria scheme and seeks to regenerate areas impacted by years of illegal sand extraction.
The government anticipates the plant will save around £200 million annually on electricity bills and potentially supply one third of the island’s energy demand. Additionally, it will enhance the integration of renewable energy sources within the electrical grid for both Tenerife and La Gomera.
