Portuguese Energy Company Secures Contract to Enhance Geothermal Power in Azores

What's Happening?

A Portuguese energy company, Exergy International, has secured a €24.5 million contract to upgrade geothermal power facilities on the island of São Miguel in the Azores. The project, in collaboration with EDA Renováveis, involves replacing outdated equipment at a power plant in Ribeira Grande. The new system is designed to produce five megawatts of electricity by harnessing geothermal sources at approximately 150 degrees Celsius. This initiative is part of the Azores' broader goal to achieve zero carbon emissions within 25 years. Currently, the archipelago generates about 21% of its electricity from geothermal sources, with only two islands utilizing this resource. The upgrade aims to increase the efficiency of energy capture from the same heat source, with the facility expected to produce 5.3 megawatts, surpassing initial targets. The project also includes reinjecting water back underground to sustain the resource for future use.

Why It's Important?

The development of geothermal energy in the Azores represents a significant step towards sustainable energy solutions, offering a reliable and continuous power source unlike intermittent wind and solar energy. This project not only supports the Azores' environmental goals but also promises economic benefits by reducing electricity costs and air pollution. The transition from fossil fuels to renewable energy sources like geothermal can mitigate health risks associated with air pollution, such as respiratory and heart diseases. The Azores' commitment to increasing their renewable energy share to 70% in the near future underscores the potential for similar initiatives in other regions with geothermal capabilities, contributing to global efforts in combating climate change.

What's Next?

The construction of the upgraded geothermal facility is scheduled to be completed by 2027, with partial operations expected to commence by mid-2026. This timeline suggests a gradual transition towards increased renewable energy capacity in the Azores. The success of this project could encourage further investments in geothermal energy, both within Portugal and internationally, as regions seek to diversify their energy portfolios and reduce carbon footprints. Stakeholders, including local governments and environmental organizations, will likely monitor the project's progress and outcomes to assess its impact on energy policy and community health.