Government Launches 820.5 MW Power Tender in Canary Islands, Balearics, Ceuta, and Melilla
The Ministry for Ecological Transition and Demographic Challenge (MITECO) has announced a new tender for a total of 820.5 megawatts of power, aimed at securing the electricity supply needed for 2031 in the Canary Islands, Balearics, Ceuta, and Melilla.
As part of this initiative, MITECO has opened a public consultation period on two proposed regulations aimed at improving electricity storage and enhancing the pricing signal for renewable energy generation in these regions.
Energy Secretary Joan Groizard stated that these measures seek to deepen the ecological transition beyond mainland Spain, promoting renewable integration and reducing dependency on imported energy. He met with energy sector representatives and the Canarian government to discuss the reforms aimed at decarbonising the islands.
This second tender follows an analysis by Red Eléctrica indicating the need for additional power across non-mainland territories by 2031 due to projected economic growth. The power allocation includes 320 megawatts for Gran Canaria, 230.5 megawatts for Tenerife-La Gomera, and 95 megawatts for Lanzarote-Fuerteventura, among others.
New generation groups, investments in existing facilities, and regulatory lifespan extensions can participate in this competitive process. Project selection will be based on technical and economic criteria, including cost savings and carbon emission limits set at a maximum of 550 grams of CO2 per kilowatt-hour.
In the Canaries, older generation groups over 40 years old will face penalties, while at least 5% of the fuel used must come from renewable sources where possible. Interested parties can submit comments until August 5.
Additionally, MITECO has put forward a draft decree to modify regulations for electricity production in these areas, establishing a legal framework for energy storage, both for hybrid and standalone systems.
The new regulations aim to add flexibility to the system and enable storage solutions to compete directly with fossil fuel power plants by publishing the average marginal price of generation in the Canaries. This reform proposes using the average price from the mainland electricity market over the past year to reward renewable generation, providing more predictable income and preventing power stations from halting production during instances of negative pricing on the mainland. Comments on this draft decree are due by August 4.
