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III. NATIONAL ACTIVITIES ICELAND CHAPTER 11 Iceland 11.1 Introduction Geothermal energy provides over half of the primary energy supply in Iceland. The principal use of geothermal energy is for space heating, and about 87% of all energy used for house heating comes from geothermal resources. Of the total electricity generation, about 17% comes from geothermal energy. See Figure 11.1 for locations of geothermal areas in Iceland and Figure 11.2 for the distribution of geothermal energy utilization. 11.2 Highlights for 2004 Because of the location of Iceland on the Mid-Atlantic Ridge the geothermal resources are abundant. Over half of the primary energy supply in the country comes from geothermal energy. The main use of geothermal energy is for space heating and about 87% of all houses are heated by this energy source. Other sectors of direct use are swimming pools, snow melting, industry, greenhouses and fish farming. An expansion in the energy intensive industry has led to a rapid increase in electricity demand in the country. This has stimulated the development of geothermal power production and resulted in the construction of new plants. Two of the largest energy companies in Iceland, Reykjavik Energy and Hitaveita Suðurnesja, both have a new power plant for electricity production under construction. The total capacity of these two plants, plus an expansion being made at Nesjavellir power plant, is approximately 200 MWe. This will double the existing capacity in the country. 11.3 National Policy The national strategy is aimed at harnessing geothermal resources whenever possible, respecting the natural and human environment. IN addition, foreign investment in power intensive industry is encouraged and watch is being kept on developments in the hydrogen fuel field. Reykholar Stykkisholmur Reykjavik Drangsnes Budardalur Reykir Nesjavellir Hædarendi Husavik Krafla Namafjall Reykjanes Hellisheidi Hveragerdi Svartsengi Figure 11.1 Location of Iceland’s geothermal utilization sites. IEA Geothermal R&T Annual Report 2004.doc 63PDF Image | Geothermal Energy Annual Report 2004
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