Key data
| Regulation | Royal Decree 591/2026, of July 15 |
|---|---|
| Publication | July 16, 2026 |
| Entry into force | July 16, 2026 |
| Affected parties | Autonomous Community of the Canary Islands, desalination plant managers and Canary Islands citizens |
| Category | Grants and Subsidies |
| Subsidy amount | 8,500,000 euros |
| Budget item | 23.04.452M.450 (Extended 2025 Budget) |
| Legal basis for granting | Articles 22.2.c) and 28.2 of the General Subsidies Law |
| Reference regulatory framework | Law 19/1994 on the Economic and Tax Regime of the Canary Islands |
| Tradition of the aid | Initiated in 1983 |
Desalination plants in the Canary Islands will receive direct economic support from the State in 2026: 8.5 million euros to finance their operating costs. The Royal Decree 591/2026, of July 15, formalizes this direct grant to the Autonomous Community of the Canary Islands, which must establish its own aid program to distribute the funds among sector operators.
The measure is not new: the State has been financing Canary Islands desalination plants since 1983, recognizing the structural disadvantage that insularity and distance from the continental territory represent for access to drinking water. What changes in 2026 is that final beneficiaries must demonstrate operational efficiency to access the funds.
What does this regulation establish?
Royal Decree 591/2026 regulates the direct grant of 8.5 million euros to the Autonomous Community of the Canary Islands. The direct grant—instead of the usual competitive call among autonomous communities—is justified by the public, social and economic interest of the measure, under the articles 22.2.c) and 28.2 of the General Subsidies Law.
The money comes from the budget item 23.04.452M.450 of the General State Budget extended from 2025.
Once the funds are received, the Canary Islands must establish a competitive aid program aimed at water treatment plant managers. This program must require beneficiaries to comply with two key conditions:
- Limits on water losses in the network: operators must demonstrate that they do not exceed a threshold of water lost during distribution.
- Energy efficiency and reduction of CO2 emissions: improvement of the energy performance of facilities and reduction of their carbon footprint is encouraged.
The ultimate objective is to bring the price of drinking water in the Canary Islands closer to the average mainland price, thus compensating for the additional costs resulting from insularity and distance, expressly recognized in the Law 19/1994 on the Economic and Tax Regime of the Canary Islands.
Economic and operational impact
For desalination plant managers, this subsidy represents a direct reduction in operating costs that would otherwise be passed on to the end user's bill. Water produced through desalination has a much higher energy cost than surface or groundwater, which has historically made supply more expensive in the archipelago compared to the mainland.
The 8.5 million euros will be channeled through a competitive program managed by the Government of the Canary Islands. This means that not all operators will automatically receive funds: they must apply and demonstrate compliance with efficiency requirements.
From an operational perspective, managers who wish to apply for the aid must:
- Demonstrate that their water losses in the network are below the limits set by the regional program.
- Demonstrate progress in energy efficiency or commit to reducing CO2 emissions in their facilities.
For Canary Islands citizens, the expected impact is a containment of the water price on the bill, although the final effect will depend on how the Canary Islands transfers the subsidy to tariffs.
Who does it affect?
- Autonomous Community of the Canary Islands: is the direct beneficiary of the 8.5 million and is responsible for designing and managing the regional aid program.
- Managers and operators of water treatment and desalination plants in the Canary Islands: are the final beneficiaries of the regional program. They must comply with efficiency requirements to access the funds.
- Companies holding water service concessions in the archipelago: affected by the operational conditions established by the regional program.
- Citizens and companies consuming water in the Canary Islands: indirect beneficiaries through the containment of supply prices.
Practical example
Imagine an operator of a desalination plant in Gran Canaria that currently bears high energy costs and passes part of that additional cost on to the tariff of the municipalities it supplies.
With the entry into force of Royal Decree 591/2026, the Government of the Canary Islands will call a competitive program with the 8.5 million euros received from the State. This operator may request aid if it demonstrates that its water losses in the network are below the set threshold and that it has adopted energy efficiency measures or CO2 reduction.
If it obtains the aid, it will be able to reduce the cost passed on to the municipality—and ultimately to the citizen—bringing the price of Canary Islands water closer to the average mainland level, as pursued by Law 19/1994. If it does not meet the efficiency requirements, it will be excluded from the distribution and must fully assume its operating costs.
What should companies do now?
- Identify if you manage a water treatment or desalination plant in the Canary Islands: only operators of facilities in Canary Islands territory will be able to access the regional program derived from this subsidy.
- Monitor the call from the Government of the Canary Islands: the Royal Decree requires the Canary Islands to establish a competitive program. When published, there will be specific deadlines and requirements to meet.
- Audit the water losses in your facility's network: this will be one of the access criteria. Knowing your current situation will allow you to know if you comply or if you need prior improvements.
- Evaluate the energy efficiency status of the plant: the program will require commitments in this area. Prepare the technical documentation that certifies energy performance and CO2 emissions.
- Consult with the water department of the Government of the Canary Islands: to learn about the publication schedule of the regional program and the evaluation criteria that will be applied in the competitive call.
Frequently asked questions
How much money does the Canary Islands receive from the State for desalination in 2026?
Royal Decree 591/2026 grants 8,500,000 euros to the Autonomous Community of the Canary Islands to finance the operating costs of its water treatment plants. The funds come from budget item 23.04.452M.450 of the extended 2025 Budget.
Who can apply for this subsidy directly?
The subsidy is granted directly to the Autonomous Community of the Canary Islands, not to private operators. The Canary Islands must call its own competitive program to which managers of water treatment and desalination plants located in its territory may apply.
What requirements must desalination managers meet to access the funds?
The regional program will require beneficiaries to: (1) respect limits on water losses in the network and (2) demonstrate commitments to energy efficiency and reduction of CO2 emissions. The specific criteria will be set by the Government of the Canary Islands in its call.
Why is this aid granted by direct grant and not by competition?
The direct grant is covered by articles 22.2.c) and 28.2 of the General Subsidies Law, which allow this exceptional modality when there is proven public, social and economic interest. In this case, the justification is to compensate for the structural disadvantage of Canary Islands insularity recognized in Law 19/1994.
Since when has this state aid to Canary Islands desalination plants existed?
This financing line has a tradition dating back to 1983. Royal Decree 591/2026 continues a support policy initiated more than four decades ago to compensate for the additional costs of water in the Canary Islands archipelago.
Official source
Consult complete regulation in official source
Notice: This article is purely informational in nature and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-15459