The Ministry for Ecological Transition launches 120 million in grants to promote feasibility studies for deep geothermal energy

The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has opened the first call for applications for grants to carry out feasibility studies for deep geothermal energy in Spain, published in the Official State Gazette. It has a budget of 120 million euros - half of which is earmarked entirely for the Canary Islands - from the Recovery, Transformation and Resilience Plan (PRTR), financed by the EU's DEEP GEOTHERMAL ENERGY Programme, to cover part of the investment in deep boreholes that will enable the development of the first medium and high temperature deep geothermal projects in Spain for electricity generation or direct thermal uses. Interested parties can submit their applications between 15 June and 7 September.

The Institute for Energy Diversification and Saving (IDAE), a body attached to the MITECO, will manage this line of financing that seeks to promote feasibility studies that include exploratory actions to analyse and quantify the geothermal resources found in different geothermal sites in Spain.

To be eligible, studies must include the digging of at least one exploratory borehole at a minimum depth of 1,000 metres and up to three boreholes per study are eligible for funding. Successful results would enable the beneficiaries to exploit the resources and develop the country's first projects.

The IDAE may bring forward the payment of the aid, which will be granted on a non-repayable basis, in order to facilitate the financing of the projects awarded. These may be promoted by public or private entities with or without their own legal personality, although they are required to be applicants or holders of the public mining domain or participants in a public tender for mining rights in accordance with the legislation in force.

The Canary Islands, geothermal power

Geothermal energy is a clean, manageable and inexhaustible energy, the use of which results in less dependence on external energy, reduces the consumption of fossil fuels and strengthens security of supply by providing a constant flow of energy. It is part of the country's energy transition strategy, as the National Integrated Energy and Climate Plan sets a target of 15 MW of geothermal power to be installed for electricity production by 2025 and 30 MW of electricity by 2030.

Due to their special volcanic nature, the Canary Islands are home to the largest medium- and high-temperature geothermal resource in Spain, which could supply a large part of the archipelago's electricity demand. Therefore, at least half of the budget - 60 million - is earmarked for feasibility studies in La Palma, Tenerife, Gran Canaria and Lanzarote, with 15 million for each island, which will also be eligible for part of the budget earmarked for the rest of the territory.

Although there are other enclaves with recognised geothermal potential, such as certain areas of Catalonia, Galicia, Andalusia, northern Madrid or the Pre-Pyrenees, applications for aid may be submitted for studies throughout the country, in any area with indications of the presence of geothermal resources in the subsoil.

Priority for studies on La Palma

Among the assessment criteria, special consideration will be given to collaboration between companies, public administrations and technology centres, through public-private consortia, and also the degree of maturity of the proposal. In order to help revive its economy after the eruption of the Cumbre Vieja volcano, studies located on La Palma will score highly.

In addition, the process will also take into account the socio-economic impact in just transition and demographic challenge regions, the proposals with the greatest impact on the value chain and those that provide the best opportunities for training and capacity building in geothermal energy for the workers involved.

Geothermal energy, a national commitment

The PRTR allocates line 1 of component 7 to "the development of renewables and their integration into production processes and building", which is the area in which the 60 million earmarked for the whole of Spain are included, with the 60 million specifically focused on the Canary Islands corresponding to line 2, which promotes "sustainable energy on the islands".

Applications for the Deep Geothermal call can be submitted between 15 June and 7 September. Eligible actions must be carried out before 31 January 2026.

Non official translation