1. Introduction 32. The Canary Islands – An overview 43. The Canary Islands – The energy framework 53.1 Energy demand 53.2 Energy supply 73.3 The electricity sector and operational principles 73.3.1 Management 73.3.2 Programs support 83.4 Renewable electricity 103.4.1 Wind energy 113.4.2 Photovoltaic and solar energy 113.4.3 Hydroelectric energy124. Existing projects 125. The Canary Islands – Vision for the future 146. Conclusion 157. Bibliography 163.5% of EU citizens currently live on islands; their fragile ecosystems, weak economies and energy systems come under increasing pressure during peak tourist seasons. Most EU islands face the challenges of market failures, inconsistent regulation, poor security of supply and rely heavily on imports. Their physically isolated state causes the islands to have a lower GDP than the country to which they belong, their infrastructure systems suffer from great inefficiencies and high energy costs which are passed on to the end user. However, islands like the Canary Islands enjoy large amounts of sunshine. , wind and water making the integration of renewable energies very promising. The Canary Islands represent an ideal test bed, they are natural laboratories for researching, developing and testing new technologies which can then be implemented throughout the world. It is clear that Europe needs these platforms if it is to build a sustainable future. Islands such as the Canary Islands provide this opportunity and why it is crucial to invest more effort in these island regions. This report aims to examine the current energy situation of the Canary Islands as a whole, it will provide an overview of the state of the quo. supply and demand, regulatory framework,...... middle of document......: Project description: http://www.islepact.eu/html/index.aspx?pageid= 1001&langID=3PAE RAE. (2008, December). Stories Project. Retrieved April 2014 from existing regulations and legislative framework related to RES implementation: http://www.storiesproject.eu/docs/STORIES_Presentations/Existing_regulations_and_legislative_framework_rated_to_RES_implementation.pdfPiernavieja, G. (November 2012). Island pact. Retrieved March 2014 from Fostering Innovative Renewable Energy Projects through PPP: El Hierro, La Graciosa and other islands: http://www.islepact.eu/userfiles/file/EVENT%2021%2011%202012/ITC%20Canary% 20Islands%20Isle %20Pact%20Final%20Conference.pdfRed Electrica de España. (2013). Red Electrical de España: Activities. Retrieved April 2014 from Red Electrica: Canary Islands Electricity System: http://www.ree.es/en/activities/canary-islands-electricity-system