Reykjavík Geothermal co-leads sustainable initiative in the Canary Islands
For the first time in Tenerife’s history, geothermal drilling for energy production will commence this autumn. The project is a joint effort by Reykjavík Geothermal, the Canary Island’s largest energy company DISA, and the government of Tenerife through public agencies ITER and Involcan. Together they have formed Energía Geotérmica de Canarias (EGC), the company leading this initiative, which will start the first geothermal exploration with drilling in the southern part of the island in September. The formal establishment of the EGC took place with the signing at a ceremony in Santa Cruz, Tenerife today. Boreholes between 2,500 and 3,000 meters deep will be drilled to evaluate subsurface conditions and confirm the viability of geothermal conditions suitable for producing clean, stable and locally sourced energy available year-round.
Tenerife’s pursuit of energy self-sufficiency
The geothermal exploration initiative comes at a critical time for Tenerife, as the island faces growing pressure to secure sustainable and affordable energy sources. Currently, over 80% of Tenerife’s electricity is generated using imported oil, which is burned in photovoltaic generators – a system is both environmentally harmful and extremely expensive. Spanish government heavily subsidizes these energy costs for residents across the Canary Islands. With no viable hydropower resources and limited space for further large-scale wind or solar farms – geothermal energy has emerged as a key focus in the islands’ long-term energy strategy, its utilisation being of increasing importance in the future plans of the government on the island.
Icelandic expertise at the core
Reykjavík Geothermal plays a central role in the project, both as owner and technical leader. With proven track record in developing geothermal projects worldwide, the company is bringing its deep expertise to support Tenerife’s first step toward the harnessing geothermal energy. This marks a significant milestone in applying Icelandic know-how to advance sustainable energy solutions in new regions.
“This project is built on Iceland’s experience, expertise and deep-rooted belief in geothermal energy as a sustainable solution. It has the potential to transform the conditions to produce energy in Tenerife. The trust shown by our project partners is a great recognition of Icelandic know-how and technical leadership in geothermal development – and it’s an honour for us to contribute” says Magnús Ásbjörnsson, CEO of Reykjavik Geothermal.
Research confirms strong potential
Extensive geoscience research, environmental research, and preparatory studies have been underway for the past two years. Surface surveys conducted in 2024 revealed promising signs of geothermal activity, particularly in the southern and western parts of the island. Final administrative approval from the Canary Islands authorities is pending, though the drilling contract has already been tendered. If successful, this first phase of exploration could pave the way for geothermal power plants to become a vital component of the island’s energy mix – supporting its transition away from imported oil and toward a more sustainable, self-sufficient future.
