Renewable Energy and the Canary Islands
El Hierro, one of the smallest islands in the Canaries, wants to be the world's first island to cover its energy needs without fossil fuels. Even so, 60 percent of its electricity still comes from its conventional generating station. (1) With five wind turbines, two water deposits, four hydraulic turbines and one pumping station make up a renewable energy experiment that began in 2014. Also, near the capital of an island stands the hydro-wind power plant of Gorona del Viento, an innovative project that has turned El Hierro into a clean energy lab.
Part of the energy produced by the wind farm goes directly to the clients, and part to pumps that lift water from a lower deposit nearly at sea level to another one at an altitude of 700 meters. In fact, last February the island reached a milestone: it managed to meet power demand with 100% renewable energy for 18 consecutive days.
The goal for the plant is to generate 100% clean energy for one complete year. In 2017, it provided 47% of all electricity consumed on the island, 17 points above 2015; the rest is supplied by a diesel plant located next to this one. (2)
Moreover, the Swedish wave energy company, Seabased, is teaming up with United Arab Emirates’ Infocom Connect to provide wave energy for commercial projects in the Canary Islands. The partnership will begin with a pilot project for 5 MW installation to provide energy for a desalination plant but could expand to address multiple energy needs, from automobile recharging stations to supply the grid. (3)
In addition to this, last July an Industrial and scientific delegation from Japan participated in a day focused on offshore wind energy in the Canary Oceanic Platform. The visit was organized by PLOCAN in collaboration with CDTI (Center for Industrial Technological Development) and NEDO (Organization for Technological Development and New Energy of Japan. The objective was to show Japanese companies the potential and capabilities of the Spanish Industry that can be reached.
During the meeting, the Deputy Minister of Industry and Energy of the Canary Islands Government and mentioned that the Island has the challenge of achieving 45% energy generation from renewable energies and the objective of installed 300MW of offshore energy, both by 2025.
He also highlighted the following projects:
● The 5MW Elican a prototype offshore wind tower installed last June.
● The Elisa Technology that allows the wind turbine to be assembled in the port and it is the first in the world installed in the sea without the help of heavy machinery.
● The Jancean WIP 10+ project that is a fully integrated wind energy floating platform. (4)
The target for the renewable generation according to the EU parliament is 35% by 2030. The Council and the Commission are suggesting 27% while the institutions agreed in 20% for 2020.
As we can see, the Canary Islands are full of opportunities for Renewable Energies. Different companies, from different countries and continents are interested in the potential of the Islands. They will be able to reach their goals if the set up in the Islands, besides, if they register as a ZEC Company, they will enjoy the benefits as the Corporate Tax rate of 4%, allow them to maximize their profits and optimize their investment.
If you want to know more about ZEC benefits or are you looking for investments in Renewable Energies in the Island, please don´t hesitate in contacting us, our experts will be glad to help you.
Novara Capital Group is an international tax & capital investment consulting firm. We specialise in Corporate Structuring, European Union Tax Incentives, IP Positioning, and Transactions / M&A. We provide intelligent corporate structures, advice, and an integrated service which cross delivers in businesses. We advise companies globally to accelerate international growth, optimise net profits, and enhance equity value leveraging Intellectual Property and Licences. Our in-house experts specialise in International Tax Law, Company Law & Cross Border Jurisdiction, Investment & Asset Management, Mergers & Acquisitions, and Operational Management.
Get in touch today to arrange an introductory conversation for more information.
London Tel: +44 207 129 7086
Spain Tel: +34 910 085 807