Saudi geothermal pilots gain momentum to scale

Saudi Arabia

Meshary Al Ayed, CEO of TAQA Geothermal, talks to The Energy Year about leveraging the company’s international partnerships and growing experience in geothermal projects to develop localised supply chains and practical execution capabilities in Saudi Arabia.

TAQA Geothermal is a joint venture between TAQA and Reykjavik Geothermal that develops geothermal resources globally.

• Saudi Arabia has extensive experience in drilling, reservoir modelling and other subsurface work that can be readily applied to harnessing geothermal sources. However, since the country is not located on tectonic boundaries, reaching high-temperature subsurface zones is challenging.
• International geothermal projects are critical proving grounds that are allowing TAQA Geothermal to build technical, regulatory and operational experience before tackling domestic deployments.
• The most practical short-term use case for geothermal energy in Saudi Arabia is heat pumps for cooling, which can account for up to half of power demand during peak periods – a share that will rise as urbanisation progresses.

How has geothermal energy been evolving within Saudi Arabia’s energy mix, and how is international expertise contributing to its growth?
Geothermal is emerging as a strategic renewable energy resource in Saudi Arabia. Initially just a subject of academic research, in the past decade, geothermal work has transitioned into projects, and the Ministry of Energy is developing policies to govern development. These foundational steps are critical to assessing whether geothermal energy can play a viable commercial role in Saudi Arabia’s energy supply.
International projects are instrumental for us to build expertise and gain operational experience. A key example is our geothermal development project in Tenerife, one of Spain’s Canary Islands. The island imports virtually all of its fuel, and its volcanic geology and geothermal potential present an attractive opportunity.
Soluciones Geotérmicas Integradas (SGI), a TAQA-established European entity created to bid for and hold the project contracts, secured the award for this EU-backed project in 2024, with TAQA Geothermal engaged by SGI as the project manager. Drilling began in January 2026, and we have recently completed a second well with a consortium of technical partners and service providers. Our contract is for four wells, with an option for three more wells in the neighbouring island of La Palma. After each well, we conduct extensive testing to determine whether the heat output is sufficient for commercial power generation. We have gained experience in regulatory, permitting, logistical and procurement aspects that will be valuable when we develop similar projects in Saudi Arabia and elsewhere in the Middle East.

When do you expect a final assessment of the viability of the Tenerife site?
It can take up to 18 months for projects to progress from the bidding stage to drilling, but in Tenerife, we moved quickly. The first well was drilled within six months of signing the contract. Based on the current pace, we expect a solid indication of resource viability within the next 12 months. While surface reports and shallow surveys have been encouraging, only full-scale drilling and testing can confirm the potential to generate electricity.

What role will EDF play in TAQA Geothermal’s operations following the MoU signed in February 2026?
The partnership with EDF is a strategic step for us, as EDF has decades of experience in renewables and has long been active in Saudi Arabia. They delivered the country’s first wind project. We share a vision of expanding the role of geothermal energy as Saudi Arabia progresses towards its renewables targets.
The collaboration will create strong capabilities in two key areas: subsurface engineering and downstream industrialisation. EDF will share its expertise in energy modelling and project development, which TAQA Geothermal can complement with its drilling and supply chain assets in Saudi Arabia.
Geothermal sits at the intersection of subsurface engineering, a discipline that is very familiar to oil and gas professionals, and power infrastructure development, which is more aligned with utilities. Saudi Arabia has deep expertise in subsurface work, including drilling and reservoir modelling, which is crucial for reaching geothermal heat sources.
Unlike Iceland or Indonesia, Saudi Arabia is not located on tectonic boundaries, so reaching high-temperature zones is more challenging. That is why partnerships such as ours with EDF are essential to bridge the gap between drilling expertise and power generation.

What are the most readily practicable applications for geothermal energy in Saudi Arabia?
Cooling is the most practical short-term use case. Nearly half of Saudi Arabia’s electricity demand during peak periods is driven by air conditioning, and as urbanisation progresses, demand will continue to grow. Heat pumps powered by geothermal energy can reduce the load on the national grid significantly.
In the next three years, based on our current technologies and projects in progress, we estimate we can deploy geothermal cooling solutions capable of displacing up to 500 MW of electricity demand. We have the necessary systems; what remains to be done is deploy a business model to integrate them into Saudi Arabia’s energy infrastructure.
We stand by our commitment to supply 1 GW of geothermal power to the Saudi grid by 2030. It is an ambitious goal, but a realistic one. Success will depend on regulatory clarity, the commercial viability of the resources we tap, regulatory clarity and the speed at which we can develop ancillary capabilities locally. Once our pilot projects prove successful, scaling will follow more easily.
If the resources are commercially exploitable, geothermal can be scaled to meet national goals. Tight gas was once considered too complex and expensive. The Jafurah gasfield was not even on the agenda 10 years ago, and today, it is a strategic asset. Similarly, geothermal can grow rapidly once the risks are understood and supply chains are in place.

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