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Introduction Iceland is a relatively small country with a population of 300,000 people and an extremely mountainous and volcanic terrain. In the early 1900’s, Iceland was one of the poorest countries in the world, but in less than a century, Iceland has become one of the countries with the highest standards of living. But how did this happen? In the early 20th century, Iceland’s energy was dependent on foreign energy imports and domestic sources of turf and wood. But the geography and climate make Iceland the perfect place for hydroelectric and geothermal energy development. Iceland is located directly over the Mid Atlantic Ridge that is separating at a rate of 2 centimeters per year. This location over the mantle plum results in frequent volcanic eruptions and abundant geothermal resources. This tectonic activity has created an island about 40,000 square miles (mi2) with mountains rising to elevations over 2000 meters. One-tenth of the countries land mass is covered by glaciers that feed into powerful flowing rivers. Mountainous regions combined with large amounts of precipitation and glaciers create the perfect atmosphere for high-value hydropower resources. Development of these hydropower and geothermal sources increased to a level that in 2008, 82% of power came from indigenous resources. The rest of the energy was imported fossil fuels for the fishing and transportation sectors. Iceland now has a higher renewable energy proportion in their national energy budget than any other country and they have only begun to tap their energy potential. The potential electrical energy generation is 50 terawatt hours per year (TWh/yr), and Iceland is only producing 17% of that1. Of that energy, 90% is used in energy intensive industries like metal smelting. But not all of the potential energy in Iceland will be developed. Concerns over land use, loss of cultural heritage and environmental impacts will prevent development of hydroelectric and geothermal resources in critical areas. Alaska on the other hand is a much larger state with a different type of geology. Yet, Alaska still has abundant geothermal and hydroelectric resources. There are some fundamental differences between the areas, but there are lessons that can be learned from one another. This primer is designed to give some background information on Iceland and Alaska. The first section will describe current and potential geothermal and hydroelectric energy in Alaska. The following section will offer a quick comparison of the two areas highlighting some of the fundamental differences. And finally, the last section will describe the context that led to the development of the energy sector and what followed it. 1 Steingrimsson et al., 2006. 3PDF Image | Geothermal and Hydroelectric Energy in Iceland and Alaska
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