Business representatives from Las Palmas de Gran Canaria have expressed their concern regarding the future of investments in the archipelago. According to their estimates, at least 50% of projects related to energy transition will not be completed if the execution deadline for the Next Generation Funds, set for August 31 of this year, is not extended until 2028.
This situation could lead to a loss of approximately 242 million euros in investment for the Canary Islands, meaning the failure to install about 170 MW of new renewable energy and 140 MWh of storage, enough capacity to supply thousands of homes. Although the one-year extension requested by the Spanish Government from the European Commission is appreciated, the sector considers it insufficient.
“"Twelve months can be a breath of fresh air, but the ideal date is December 2028 to guarantee the execution of practically 100% of the projects and the committed investment."
The employers' association argues that the short initial period for execution and justification has been the main obstacle. The last aid package, launched in December 2025, required projects to be completed by March 2026, a period that was extended until April. However, the technical complexity of many projects, the need for material supply, and connection to the electricity grid make compliance unfeasible within such a short timeframe.
The business sector will continue to urge the Spanish Government to intercede with the European Union, requesting that the unique nature of the Canary Islands as an insular territory, with its disadvantages of remoteness and insularity, be considered. The final decision on the extension of the funds now rests with the European Commission.
The Next Generation Funds are a temporary EU recovery instrument, designed to mitigate the socio-economic damage from the COVID-19 pandemic, funding projects for ecological transition, digitalization, sustainability, and social cohesion.
