Southern Gran Canaria isn't just attracting tourists. Now, it's also seducing renewable energy giants. With steady winds, deep waters close to the coast, and a reinforced electricity grid, the coastline between Arguineguín and Juan Grande is emerging as one of Europe's most profitable hubs for the development of floating offshore wind power. The technical and economic forecasts support this.
According to internal Equinor simulations—based on real-world production models at Hywind Scotland and Hywind Tampen—a 200-300 MW wind cluster off the southern coast of Gran Canaria, using state-of-the-art floating technology, could achieve a capacity factor exceeding 51%, placing the region among the top five in Europe for wind resource harvesting efficiency.
The combination of stable resources and deep sea makes southern Gran Canaria a tier-1 location. The levelized cost of energy (LCOE), currently estimated at around €88/MWh for floating technology, could be reduced to €65/MWh by 2029 if local logistics infrastructure such as the Muelle de Arinaga is consolidated and tax incentives linked to the Canary Islands' Economic and Fiscal Regime (REF) are activated.
For every 100 MW installed, an investment of around €360 million is projected, with estimated net returns between 9% and 12% IRR in projects with PPAs indexed to real prices in the Canary Islands market, which has maintained an average of between €130 and €160/MWh since 2022. The differential with respect to the peninsula makes ground connection a key factor in profitability.
The existence of redundant electrical infrastructure on the Salto de Chira–Telde axis and the reinforcement of the Barranco de Tirajana substation help avoid bottlenecks. However, legal issues remain: Canary Islands waters are under state jurisdiction, and the first auctions are expected to be held in 2026, with the awarding of zone use rights for 25 years.
Beyond the direct return, southern Gran Canaria offers industrial added value. It is estimated that each installed MW can generate 11 direct and indirect jobs, which places the employment potential of a 250 MW wind farm at 2.750 jobs over its life cycle. If the port of Arinaga succeeds in positioning itself as an assembly and maintenance base, the economic multiplier would skyrocket.
In short, southern Gran Canaria is today for offshore wind what the North Sea was in the 90s: an unexplored frontier, with stable winds, favorable fiscal rules, and urgent climate action. The hardest part is still missing: a political decision, a clear auction, and an operational port.
