Call for proposals – Geothermal direct use applications in Portugal

Puente Don Luis I in Porto, Portugal (source: Diego Delso, CC BY-SA 3.0 , via Wikimedia Commons)

Carlo Cariaga 30 Mar 2026

Portugal has launched a new call for proposals worth EUR 15 million to boost the use of geothermal energy, with a clear focus on direct thermal applications such as spas, heat networks and public buildings, according to Notice No. 6265/2026/2 published in the Diário da República.

The program focuses on the use of “natural mineral waters with temperatures equal to or greater than 25°C”, as well as geothermal resources intended for direct heat uses. The main project types sought by the call for proposals include:

• Thermal self-consumption in spas
• Supply of heat to public buildings
• Replacement of fossil fuels in thermal systems

The scheme includes non-refundable incentives that can cover up to 100% of eligible costs, including infrastructure, equipment, integration with renewables and monitoring systems. The measure is part of the European Union’s Modernisation Fund, financed through the emissions trading system, which could provide Portugal with close to EUR 1 billion until 2030. Portugal’s application for this funding was announced earlier this year, as reported by ThinkGeoEnergy.

Applications may be submitted starting 10 business days after the publication of the notice, or until December 31, 2028, or until funds are exhausted. More information is available by email to mapg@dgeg.gov.pt.

Technical requirements and project types

Fundable projects under this call for proposals include:

• Construction, modernization or expansion of geothermal power plants
• Development of heat distribution networks
• Installation of thermal systems for heating, cooling and domestic hot water
• Integration of renewable solutions such as photovoltaic systems
• Monitoring of water intakes and operation

The projects must meet conditions aligned with European objectives:

• Minimum reduction of 60% in greenhouse gas emissions
• Minimum use of 60% renewable energy in thermal systems
• Compliance with the principle of not causing significant harm (DNSH)
• Use of technically proven technologies

Source: Official Journal of the Portuguese Republic / Direção-Geral de Energia e Geologia (DGEG) via our Spanish language platform PiensaGeotermia

Carlo Cariaga

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