The Government leaves the Canary Islands out of the Middle East aid with 200 million euros and hundreds of strategic jobs

Up to more than 200 million euros could be lost in Canary Islands if the Government of Spain does not act immediately and modifies the management dates of a part of the Next Generation funds program, which affects the Sustainable Energy Strategy of the Balearic and Canary Islands.

On March 18, the Canary Government raised the alarm and sent a letter to Pedro Sánchez's Executive, specifically to the general director of IDAE (Institute for Energy Diversification and Saving), informing him that, if the deadlines for the execution of these aids were not extended, the islands could lose 242 million euros and hundreds of strategic jobs, for the sake of the decarbonization and of the just and inclusive energy transition.

Aligned with the concerns of the sector, represented by the Regional Confederation of Metal and New Technologies Companies of the Canary Islands (CREM), integrated by Femete and Femepa, the Canary Islands Government has sent a technical proposal to the Government of Spain to execute at least more than 80% of the funds and ensure the implementation of key energy infrastructures in the islands, however, to date, the central Executive has not issued any response, despite the fact that it was IDAE itself who requested the formalization of this proposal, in light of previous conversations about the deadlines and the possible loss and return of these Next Generation funds.

According to business sources consulted by Demócrata, the Government of Pedro Sánchez even considered incorporating these deadline modifications into the Royal Decree-Law of its Comprehensive Plan for Response to the Crisis in the Middle East, which was finally not done, deferring the matter to Brussels, although there are headings within this RDL, of a new legislative framework for the electricity sector in which “regulatory proposals aimed at guaranteeing electricity supply in these systems at minimum cost and compliance with the decarbonization objectives established by the Government and the autonomous communities for these territories” are weighed.

Extension of the temporal framework

The Canary Government's proposal, its officials argue, would facilitate the implementation in the Canary Islands of more than 170 MW of renewable generation and 140 MWh of storage, which would mark a historic milestone in Europe regarding the decarbonization of its outermost regions and in Spain in the territory with the most difficulties to achieve it.

At the same time, our consulted sources insist, the fulfillment of the PRTR's commitments before the European Commission would be ensured, the energy transition in the island territories would continue to be promoted, the possible loss of funding from European funds would be avoided and a correct technical execution of the projects would be guaranteed.

In the opinion of the Canarian Government, and with the advice of the affected business associations, modifying the execution times is not complex, as it is a procedure that the Spanish Executive has already used. That is, a technical reconfiguration of the PRTR compliance model, operated by the Order TED/1444/2025 of December 11, which modifies the regulatory bases of several aid programs within the framework of the Recovery, Transformation and Resilience Plan financed by the European Union-Next Generation EU, and which in its day was not extended to the aid managed by the Autonomous Community of the Canary Islands through Royal Decree 451/2022, of June 14, which regulates the direct granting of aid intended for the financing of sustainable energy strategies for the Balearic Islands and the Canary Islands, within the framework of the Recovery, Transformation and Resilience Plan.

So, now it could indeed be modified, extending the execution of the projects in coherence with the temporal framework of the actions financed through REPowerEU and guaranteeing the correct absorption of European funds and the continuity of strategic investments in energy transition of the aforementioned territories.

This incorporation into financing with component 31 was already carried out in another of the calls managed by the autonomous communities, specifically in Royal Decree 477/2021, of June 29, which approves the direct granting to the autonomous communities and the cities of Ceuta and Melilla of aid for the execution of various incentive programs linked to self-consumption and storage with renewable energy sources, as well as to the implementation of renewable thermal systems in the residential sector, within the framework of the Recovery, Transformation and Resilience Plan, and in its modification by Royal Decree 1178/2023, of December 27, therefore, it would only be necessary to frame RD 451 within investments C7.I2 and C31.I9, as was done in RD 477 with investments C7.I1, C8.I1 and C31.I1.

A historic loss

A few days before the current deadlines expire, the uncertainty about the central Executive's decision threatens to block already committed investments and ongoing projects in a key context for the economic modernization of the islands

Sources from employers' associations, specifically CREM, integrated by Femete and Femepa and supported by Confemetal, issue an urgent warning about the consequences of the Government's inaction, alerting that the non-extension of deadlines will cause the loss of a historic opportunity for the Canary Islands

From the employers' association CEOE, they explain to Demócrata, this matter will continue to be worked on, also conveying the problem to Minister Aagesen, as there are barely two weeks left to request and get them to extend the deadline.

A political decision

Business sources warn that more than 200 million euros in already allocated European funds could be lost along with the paralysis of hundreds of projects and a direct impact on employment, emphasizing that it is not a technical problem but a lack of political decision with irreversible economic consequences for the archipelago.

The president of Femete, Juan Antonio Jiménez, warns that not granting this extension would be an error of enormous dimensions, the Canary Islands would lose already committed investments and a devastating message would be sent to the business community, that complying is useless if the administration does not respond in time, we are in the last days, either action is taken now or the responsibility for having let a historic opportunity for the Canary Islands pass will be assumed.

For her part, the president of Femepa, Patricia Jiménez, points out that we are facing a decision that will mark the economic future of the Canary Islands, if no action is taken, the Government of Spain will be responsible for the loss of more than 200 million euros, for the paralysis of strategic projects and for putting hundreds of jobs at risk, it is not about asking for more funds but about allowing already approved projects to be executed, not doing so would be abandoning the companies that have trusted in this process and halting the energy transition of the Canary Islands.

Loss of 100 megawatts of renewable power

Furthermore, the employers' associations recall, the affected projects have a favorable resolution, committed financing and execution underway, but the current deadlines make their completion unfeasible, which would force the halting of initiatives and the return of already granted European funds, in a situation that the employers' associations consider a contradiction as they are already activated investments and companies working on the ground.

The impact is not limited to financing, according to the business warning, the structural development of the Canary Islands would be affected with the loss of key investments, the paralysis of projects capable of installing more than 100 megawatts of renewable power and the deterioration of confidence in public financing mechanisms.

The employers' associations insist that these are already awarded investments whose loss would be immediate, directly affecting SMEs, installers, engineering firms, and workers who depend on the continuity of the projects, shifting the problem to the real economy and to hundreds of families in the islands.

For all this, the CREM makes an urgent call to the Government of Spain to act immediately and adopt the necessary measures that allow extending the deadlines and ensuring the execution of the funds, warning that each day of inaction brings the Canary Islands closer to a scenario marked by the loss of hundreds of millions of euros, the paralysis of projects and the halt to its economic transformation.