Geothermal Exploration Contracts in Canary Islands Awarded to Nine Entities

Wedoany.com Report-Nov 15, The Department of Ecological Transition and Energy of the Government of the Canary Islands has awarded geothermal exploration contracts in the islands of La Palma, Tenerife and Gran Canaria to a total of nine entities. With this, the tender has been officially closed and the funding of EUR 106 million from the Institute for Energy Diversification and Saving (IDAE) announced in 2023 will be appropriately allocated.

The fieldwork corresponding to these licenses are expected to begin between late December to early January 2025.

La Palma will be receiving EUR 48 million to support the exploration of 837 blocks covering practically the entire southern half of the island. These licenses have been awarded to six companies:

Repsol Exploracion

Energia Geotermica de Canarias

Geotermia La Palma

Sodepal

Sodescan 2000

Tajogaite Energia

Tenerife will also be receiving EUR 43.2 million for the exploration of 516 mining blocks. Exploration in Tenerife has been awarded to two companies:

Energia Geotermica de Canarias

Instituto Tecnologico y de Energies Renovables de Tenerife (ITER)

Lastly, the island of Gran Canaria has awarded exploration for a total of 182 mining grids, to be supported by EUR 15 million in funding. The contract has been awarded at the proposal of the Gran Canaria Island Energy Council.

“Now the next step depends on the public and private developers who have been awarded the contract,” said Mariano Hernández Zapata, Minister for Ecological Transition and Energy. He further added that the Ministry will provide all the facilities to carry out drilling in the shortest possible time.

Moreover, an environmental impact assessment will not be needed for the surveys granted that they will be carried out outside of protected natural areas. This exemption had been granted to facilitate the progress of these studies. The contracts currently specify a deadline for completing the work by 31 January 2026, but the Minister is anticipating that this deadline will need to be extended.