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Figure 12.3 Generation of electricity in Iceland in 2010 and 2009. (Orkustofnun, 2011) 12.2 National Policy It is the policy of the Government of Iceland to increase the utilization of the renewable energy resources even further for the power intensive industry, direct use and transport sector in harmony with the environment. A broad consensus on conservation of valuable natural areas has been influenced by social opposition, increasing over the last decade, against large hydropower and some geothermal projects. The Icelandic Government decided in 1997 to develop a Master Plan for potential power projects. All proposed projects are being evaluated and categorized on their energy efficiency and economics, and also on the basis of the impact that the power developments would have on the environment. The Master Plan has been presented to the Icelandic Parliament and the final ranking for projects will be done in 2012. There has, as well, been a governmental effort to search for geothermal resources in areas where geothermal energy has not yet been found. A map of Iceland with identified and anticipated geothermal resources is illustrated in Figure 12.4. In Iceland, ownership of resources is associated with the ownership of land. However, exploration and utilization is subject to licensing. Three major amendments have recently been made to the energy legal framework in Iceland: (1) the ownership of resources can no longer be sold by the state or municipalities although utilization rights can be leased to a developer for up to 65 years with a possibility of extension. Royalties for the utilization are determined by the Prime Minister; (2) producers of electricity compete on an open market in Iceland. Therefore CHP power plants are obliged to keep separated accounts for heat and power production to prevent cross subsidization of electricity; and (3) the National Energy Authority can grant licenses on behalf of the Minister of Industry and in 2012 this role will formally be moved completely to the National Energy Authority. 129PDF Image | Geothermal Research and Tech IEA
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