Geothermal Best Practices and Economic Development: The Case of Iceland and São Miguel Island

Throughout human history, geothermal energy has been used for practical purposes, religious purposes, as a form of community engagement and as a natural heating system. Since the industrial revolution, the global community has relied on fossil fuels for energy production. Not only is the large-scale use of fossil fuels widely accepted internationally, but it is also extremely profitable for fossil fuel companies. This has had catastrophic impacts on climate change and the environment. Nations have recognized the dangers and negative impacts of the reliance on fossil fuels for energy production. Nations have been funding extensive research regarding renewable energy infrastructure including the implementation of geothermal energy. For example, today 70.38% of Iceland’s total energy is produced from geothermal energy. Like Iceland, São Miguel Island, located in the North Atlantic Ocean, is a region with increased geothermal potential due to its volcanic activity. Both Iceland and São Miguel Island lie on top of fault lines, where multiple tectonic plates meet. Specifically, the Açores is positioned precisely where the North American and Eurasian plates collide (How Iceland’ s Geothermal Champions are Greening the Azores). This paper seeks to explain and explore geothermal best practices specific for each of these regions, and how other nations can potentially use these best practices for their own versions of renewable energy implementation. This paper will highlight the importance of geothermal energy while moving further away from typical fossil fuels, with a focus on economic development.