Volcano Villages Powered by Geothermal Energy—Life on the Edge in Azores & Iceland

In a handful of North Atlantic villages, volcanic heat is more than a natural wonder; it is central heating,
bread oven, and spa all in one. From the subtropical Azores to Iceland’s Arctic edge,
local communities tap pressurised steam to warm houses, power greenhouses, and simmer stews for hours underground.
Below are six “volcano villages” where life runs on geothermal energy—and where visitors can share the warmth.

1. Furnas – São Miguel, Azores (Portugal)

Steam vents rising beside Furnas village lagoon on São Miguel, Azores

Signature experience: Cozido stew slow-cooked six hours in steaming soil beside Lagoa das Furnas.
Community benefit: Nearly 40 percent of domestic hot-water comes straight from natural vents,
cutting household fuel bills in half (Visit Azores).
Stay from: €60 per double in guesthouses that pipe volcanic water into tiled tubs.

2. Ribeira Grande & Caldeira Velha – Azores

Locals lifting Cozido stew pots from geothermal ground holes at Furnas

The north-coast town of Ribeira Grande hosts an experimental geothermal plant that feeds the island grid.
Ten minutes inland, Caldeira Velha reserve offers iron-rich pools at 38 °C surrounded by tree ferns.
Entrance is €10; arrive after 16:00 for fewer bathers.

3. Hveragerdi – Iceland

Natural iron-rich thermal waterfall at Caldeira Velha nature reserve

Nicknamed “the greenhouse village”, Hveragerdi pipes 180 °C water to dozens of horticultural domes,
producing Iceland-grown tomatoes and even bananas.
Entry to the Geothermal Park costs 500 ISK with
foot-bath access; boil an egg in a hot spring in six minutes.

4. Reykjahlid – Lake Myvatn, Iceland

Steam plumes and greenhouse roofs in Hveragerdi, Iceland

Northeast Iceland’s Reykjahlid relies on the Krafla volcanic system for power and hot water.
Myvatn Nature Baths (5 400 ISK) are a quieter alternative to the Blue Lagoon, with sulphur-soft water at 40 °C and views of pseudo-craters.

5. Flúðir – Iceland

Steam rising from the Myvatn Nature Baths near Reykjahlid

South-coast Flúðir heats homes and village greenhouses with the same boreholes that feed the
Secret Lagoon (Gamla Laugin), Iceland’s oldest public pool (3 000 ISK, year-round 38–40 °C).
Local bakeries proof rye bread overnight in thermal boxes.

6. Grindavík – Reykjanes Peninsula, Iceland

Secret Lagoon geothermal pool with mist rising at Fludir

The fishing town of Grindavík sits beside the Svartsengi power station,
whose geothermal runoff forms the famous Blue Lagoon spa.
Residents pay among the lowest heating bills in Iceland, and surplus
electricity powers a local silicon-metal plant.

Practical Tips

Bring a swimsuit that can handle minerals; iron and silica may stain light colours.
Test water temperature with the back of your hand before stepping in unregulated springs.
Car rentals in Iceland often include free windshield chip insurance on volcanic routes—take it.

For more unusual destinations, read our guide to
hidden gems in France
or plan a budget Cyclades escape with
seven affordable Santorini villages.

Final Thoughts

Living beside a volcano sounds risky, yet these communities turn danger into comfort—heating homes,
cooking meals, and inviting travellers to share in Earth’s oldest form of renewable energy.
Pack a towel, respect local safety signs, and enjoy a night warmed by the planet itself.