Brussels' decision has left significant investments on the island in limbo, affecting both public and private initiatives that were already awarded, tendered, or underway. Faced with this situation, the island government is seeking a “plan B” to prevent the paralysis of dozens of key projects for the energy transition.

A spokesperson for the Cabildo has announced an upcoming trip to Madrid to meet with officials from the Central Government's Energy department. The goal is to explore mechanisms to compensate for the loss of European funding. Emphasis has been placed on the need to find joint solutions to advance projects that are already prepared.

The European Commission's refusal to extend the deadline, set for this summer, thwarts a repeated request by the Government of Canarias and supported by the Central Government, which had sought a one-year extension from Brussels to complete decarbonization-related investments. It is estimated that the decision compromises over 100 million euros in Gran Canaria, out of approximately 500 million allocated to Canarias.

Affected actions include over 30 million euros in the island corporation's own projects, more than twenty public works already tendered or in execution, municipal initiatives worth 5.7 million euros, and over 50 million euros in private investment linked to self-consumption facilities, energy storage, hotels, industries, water plants, and energy communities.

A Cabildo spokesperson has defended the “joint work” carried out between administrations and the private sector to try and secure European funding. They noted that the Cabildo even made its legal teams available to the Government of Canarias to draft proposals for the Central Government and Brussels, highlighting the strong alignment with the Government of Canarias and various business associations.

Despite these efforts, the European Commission has been criticized for its “lack of sensitivity” towards the administrative and technical difficulties faced by island territories in executing complex projects within tight deadlines. The decision has been described as “absolutely unfortunate,” lamenting that extensions were granted for other energy lines.

The Central Government has also been reproached for reacting late, although the focus remains on finding solutions rather than political blame. The island official has urged both the regional government and the State to provide new funding avenues, such as compensatory mechanisms through the IDAE or other available European funds, to prevent investment paralysis.

The Cabildo asserts that it has numerous projects prepared and with permits requested that could be executed quickly if new funds were released. The loss of European funding not only affects committed works but also the institution's future capacity to promote energy transition projects. This situation has been linked to the international context of geopolitical and energy instability, emphasizing the urgency of energy sovereignty on the island.