The houses and public buildings on the island of Corvo are being equipped with solar panels and heat pumps. This one million Euro investment is being carried out by the Government with the "know how" of Azorean electricity company EDA and Green Islands Consortium, one of the main research programmes of MIT-Portugal programme.

The first phase of the installation of solar panels is almost complete and covered nearly 40 homes on the smallest island of the Azores which are already equipped with solar powered water heating systems.

The beginning of the second phase of the process to replace butane gas consumption in kitchens and sanitary facilities is scheduled for the first quarter of 2013. This process will also cover another 110 houses.

In order to achieve the financial viability of this innovative project, an ARAAL contract was signed between the Vice-Presidency of the Government, the Regional Secretariat for Natural Resources and the Corvo Town Hall.

The project intends to "find options to turn an island that is 100% dependent on imported fossil fuels in a more sustainable energy system," stated the President Corvo Island Natural Park, Fernando Ferreira.

With the use of renewable energy, the Government expects to reduce energy dependence on an island with severe supply shortages due its isolation and sometimes adverse weather conditions. Furthermore, this project aims to lower the levels of environmental impact in order to meet the guidelines of the Union European in this area.

The scope of this project will in the medium-water term will also comprise the use of water power, following the construction of a second artificial lake that will be complemented by the installation of a wind farm.

The Government of the Azores expects that within a few years, the island of Corvo may be able to reduce its dependency from hydrocarbon fuels and assure 80% of power generation from renewable sources.