High temperature geothermal resources in Portugal are limited to the volcanic islands of the Azores, where electric power has been produced since 1980.

Low-temperature geothermal resources are exploited for direct uses in balneotherapy, small space heating systems and geothermal heat pumps. In 2008, private investors obtained concession rights for exploration of geothermal resources for a total area of 2,655 km2, aiming for future development of small scale EGS generation projects. District heating projects are operating at Chaves in northern Portugal and S. Pedro do Sul, in central Portugal. There is a single greenhouse project in S. Pedro do Sul covering 2 ha, for raising tropic fruit (mainly pineapple). About 30 spas are operating in the country, but most are only open in the summer. Several dozen small geothermal heat pump installations are operating throughout the country, but unfortunately, this application is not recognized as a geothermal resource by the Portuguese administration.