Redeia (AO) | Hold | Approval of the second pumped storage in the Canary Islands

Research evidence excerpt

Redeia (AO) | Hold | Approval of the second pumped storage in the Canary Islands

News comment

Release date: 15 July 2026

Jose Porta

Equity Research Analyst

+34 914 36 5113

jporta@keplercheuvreux.com

HoldRedeia

Spain | Utilities Beta Profile: MCap: EUR8.3bn

Target Price: EUR15.70 Bloomberg: RED SM Reuters: REDE.MC

Current Price: EUR15.37 Free float 80%

Up/downside: 2.1% Avg. daily volume (EURm) 42.2

YTD abs performance 1.3% Market data: 14 July 2026

52-week high/low (EUR) 18.01/14.21

Approval of the second pumped storage in the Canary Islands

Key points:

Final Cabinet Meeting approval confirms the project but adds little new information after Miteco launched the administrative

process in February 2026.

Strategic storage asset that reinforces Redeia's System Operator role in the Canary Islands but is unlikely to alter the c. EUR1.5bn

annual capex guidance.

Mid-2030s commissioning means limited impact on medium-term earnings, although it strengthens Redeia's long-term regulated

growth pipeline.

Cabinet Meeting approval of the Güimar pumped storage facility in the Canary Islands

The Spanish Government has formally approved the development of the 200MW Güímar pumped-storage scheme in Tenerife

(Canary Islands), following up on the administrative process initiated by the Ministry for Eco Transition (Miteco) in February 2026.

The project involves more than EUR1bn of capex and will provide storage services to the Tenerife-La Gomera electrical system in a

similar manner to the Chira-Soria ongoing project in Gran Canaria, supporting renewable integration, reducing thermal

generation and improving system security.

According to the Government, the plant will provide around 3.2GWh of storage capacity, equivalent to roughly one-third of