Decarbonising islands is more difficult due to their isolation from other power systems and relatively small land mass, and the new funding will support solar and wind projects
(Corrects figures in headline and paragraph 1)
MADRID, Nov 24 (Reuters) - Spain will offer 75.1 million euros ($89 million) in state aid for renewable energy projects in the Balearic and Canary islands, the energy ministry said on Tuesday, hoping to smooth a carbon phase-out process.
Mirroring green ambitions across Europe, Spain plans to install 60 gigawatts of renewable capacity by 2030, and hopes to create more than 100,000 jobs annually and reduce energy costs for consumers and businesses in the process.
On Tuesday, ministers approved the launch of invitations to bid for 20.7 million euros ($24.6 million) in funds for solar projects in the Balearic archipelago around Ibiza and Mallorca.
A further 54.4 million euros will be offered to wind energy projects in the volcanic Canary Islands which include Tenerife.
Decarbonising islands is made more difficult by their isolation from other power systems and relatively small land mass. Where 38.6% of power used on the Spanish mainland in 2019 came from renewable sources, this proportion dropped to 16.4% in the Canaries.
The new aid is partially financed by European Union funds and is expected to lead to the installation of at least 160 megawatts of capacity in the Canaries and 120 MW in the Balearics, the ministry said.
The tiny Canary island of El Hierro has occasionally managed to meet all its power needs from renewable sources, the ministry said.
($1 = 0.8438 euros) ($1 = 0.8432 euros) (Reporting by Isla Binnie; editing by Clara-Laeila Laudette and Susan Fenton)
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