A Portuguese island chain will soon generate more electricity from underground heat after an energy company won a contract worth €24.5 million to upgrade existing facilities.
According to Renewable Energy Magazine, the agreement between Exergy International and EDA Renováveis involves replacing older equipment at a power facility in Ribeira Grande on the island of São Miguel in the Azores.
The new system will produce five megawatts of electricity using geothermal sources around 150 degrees Celsius (about 300 degrees Fahrenheit).
This upgrade is another step toward the Azores archipelago's goal of achieving zero carbon pollution within 25 years. The islands already generate about 21% of their electricity from underground heat sources, despite only two islands currently tapping into this resource.
Geothermal power captures heat from beneath Earth's surface to generate electricity. Unlike wind and solar power, which hinge on the weather and time of day, geothermal energy runs continuously to provide reliable electricity around the clock.
Cities and regions with access to underground heat can dramatically reduce electricity costs while eliminating air pollution from traditional power plants.
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Per the report, the technology involved in the São Miguel project captures more energy from the same heat source compared to older systems.
The upgraded facility will produce 5.3 megawatts and exceed its initial targets. The system also reinjects water back underground after use to preserve the resource for future generations.
For residents of São Miguel, the project means cleaner air and more stable electricity prices. Research has indicated that swapping coal and gas plants for renewable energy can reduce health risks, including respiratory illnesses and heart disease in communities — as U.S. government agencies and the Union of Concerned Scientists have noted.
The Azores have already increased their renewable electricity share to over 35% in the past few years, with plans to reach 70% soon, Renewable Energy Magazine revealed.
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Absolutely 👍 "We are pleased to engage once again in a project that will ensure a stable and reliable source of renewable energy for the local community on the island of São Miguel for many years to come," said Luca Pozzoni, Exergy's Deputy CEO, per Renewable Energy Magazine.
"This initiative further consolidates our expertise in the development of geothermal energy solutions in complex and distinctive environments."
Construction will wrap up before 2027, with partial operation starting mid-2026.
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