Geothermal Project in Vilaflor, Tenerife

Vilaflor, Tenerife – Canary Islands, Spain

Project overview

The island of Tenerife in the Canary Islands is advancing a strategic deep geothermal exploration and development program aimed at unlocking indigenous renewable energy resources to strengthen energy autonomy, decarbonisation, and economic diversification.

Unlike regions with long-standing geothermal utilisation, Tenerife is at an early but highly promising stage of geothermal development, leveraging its volcanic geology and high geothermal gradients. Initial exploration efforts have identified several high-potential zones, particularly in the southern part of the island.

A key milestone has been reached with the start of drilling operations for a geothermal exploration well in the municipality of Vilaflor, targeting a resource with temperatures of approximately 150 °C at a depth of 3000 meters. This project marks the transition from theoretical and surface-based assessments toward practical resource validation and future commercial deployment.

Project Consortium and Industry Participation

The project is being developed by Energía Geotérmica de Canarias (EGC), a dedicated project company established in 2025.

Key partners include:

Reykjavík Geothermal (Iceland) – technical expertise and geothermal know-how
DISA Group – regional energy company
ITER (Technological Institute and Renewable Energies) – public R&D institution
INVOLCAN (Volcanological Institute of the Canary Islands) – geological expertise

Drilling operations are being executed by:

Marriot Drilling – drilling services
Soluciones Geotérmicas Integradas – main contractor

This consortium combines international geothermal expertise with local institutional and industrial capacity, significantly increasing the likelihood of successful development.

Background of the project

The Canary Islands energy system is characterised by:

  • Strong dependence on imported fossil fuels
  • Limited interconnection with continental grids
  • Increasing penetration of intermittent renewable energy (solar and wind)
  • High energy costs and system instability challenges

At the same time, the region faces:

  • High demand for desalinated water
  • Pressure on agriculture and local production systems
  • A strategic need for dispatchable, baseload renewable energy

Geothermal energy is increasingly recognised as a key solution to provide continuous, locally sourced energy, complementing existing renewables and enabling further decarbonisation.

Geothermal Project Development

Exploration Drilling and Resource Validation

The Tenerife geothermal project has entered a critical phase with the initiation of deep exploration drilling in Vilaflor.

Key parameters:

  • Target depth: ~3000 meters
  • Expected temperature: ≥150 °C
  • Estimated probability of success: >60%
  • Drilling duration: approximately 4–5 months

Surface studies conducted in 2024 have identified the drilling site as one of the most promising geothermal zones on the island.

Institutional and Financial Support

The geothermal exploration program benefits from strong institutional backing:

  • Over €100 million in public subsidies allocated for geothermal exploration across Tenerife, La Palma and Gran Canaria
  • Funding provided by the Institute for Energy Diversification and Savings (IDAE)
  • Strong political support from the Government of the Canary Islands

This level of public investment reflects the strategic importance of geothermal energy for the region.

Impact and Strategic importance

1. First Deep Geothermal Power Development in the Canary Islands

If successful, the project will: 

  • Establish the first deep geothermal resource base in the Canary Islands
  • Enable future geothermal power generation (electricity and heat)
  • Reduce dependency on imported fossil fuels 

2. Enabling Dispatchable Renewable Energy

Deep geothermal energy offers: 

  • Continuous baseload power (24/7)
  • Grid stabilisation for island energy systems
  • Complementarity with solar and wind energy

This is critical for achieving high renewable penetration levels. 

3. Economic Development and Value Chain Creation

The project will stimulate:

  • Development of a local geothermal industry
  • Participation of SMEs in drilling, engineering and services
  • Creation of high-skilled jobs

Future applications may include:

  • Geothermal-powered desalination
  • Agricultural and agro-industrial uses
  • Industrial heat supply

4. Knowledge Transfer and Capacity Building 

The involvement of Icelandic expertise provides: 

  • Transfer of global best practices
  • Development of local technical capabilities
  • Strengthening of the regional innovation ecosystem

5. Integration with Broader Renewable Energy System 

The long-term vision includes:

  • Integration of geothermal with solar, wind and storage systems
  • Development of hybrid renewable energy systems
  • Contribution to energy system resilience and flexibility