The Ministry for Ecological Transition has designated the Juan Grande power plant as the epicenter of the electricity renewal project in Gran Canaria, awarding the contract to Endesa. However, the imposition of a deadline (December 31, 2028) for the new generation equipment to become operational has been deemed "impossible" by experts, given that the construction and commissioning of such infrastructure typically takes five to ten years.
The race against time to protect the Canary Islands' electrical system from the risk of blackouts has entered its most critical phase, with the publication of the provisional resolution by the Ministry for Ecological Transition (MITECO). The decision focuses on current sites, with the Juan Grande and Jinámar power plants leading the way on Gran Canaria.
According to industry sources, Endesa emerged as the big winner of the tender, taking charge of installing new capacity and upgrading obsolete equipment at the power plants in Gran Canaria and Tenerife. The Ministry's decision to use existing sites, such as Juan Grande, is due to its economic viability, as it simplifies the logistics of connecting to the grid.
The company will have to undertake an estimated investment of nearly €1.000 billion across its Canary Islands projects, aimed at replacing equipment, some of which is over 50 years old. The most controversial aspect of the MITECO resolution is the deadline: December 31, 2028. This short three-year period has generated a flood of appeals from both the winning companies (Endesa, Disa, Sampol, and Satocan) and those that were excluded.
Industry experts, such as Carlos Medina, dean of the College of Industrial Engineers of Eastern Canary Islands, have repeatedly warned that the installation of the nearly 1.000 MW of power in the tender will require, on average, between five and ten years, considering the need to build the new plants and complete the complex environmental procedures.
The Ministry for Ecological Transition (MITECO) has accumulated more than twelve years of delay in launching the tender, which has led to the current power shortage and a high risk of a complete power outage. Now, it is demanding a speed of execution from companies that the sector considers unrealistic.
The Ministry's haste is underscored by a clause allowing winning bidders to withdraw from the tender without penalty after the appeals period, an escape route companies are considering given the lack of certainty. Besides the deadlines, the other major point of contention is the remuneration. Companies complain that the resolution fails to specify how much will be paid for electricity generation, despite the total investment in the tender exceeding €1.500 billion.
