geothermal development and research in iceland - Orkustofnun

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Fig. 4. Relative share of energy resources in the heating of houses in Iceland geothermal fields to towns, villages and individual farms. This involved converting household heating systems from electricity or oil to geothermal heat. But despite reducing the use of oil in space heating from 45% to 18% from 1973 to 1979, the share of oil still remained about 50% to 60% of the total cost of heat. This was due to rising oil prices. The relative share of energy resources used to heat households has developed since 1970 (see Fig. 4). The increase in geothermal energy is clearly seen, but after 1985 the change is relatively small. The use of geothermal energy is, however, still increasing, and over the long run could rise from its present rate of 89% to 92%. The share of oil for heating continues to decrease and is at present at about 1%. Electric heat has a share of about 10% but one third of that comes from heating plants where electricity is used to heat water that is then distributed through district-heating systems, to the various communities. 4.1.6 Benefits of using geothermal heat instead of oil. The economic benefits of the government’s policy to increase the utilization of geothermal energy can bee seen when the total payments for hot water used for space heating are compared to the consumer costs of oil. Fig. 5. Cost of hot water versus oil Fig. 5 compares the cost of hot water to what would have been spent on oil to yield the same energy for heating (1970 to 2005). All costs are priced in the corresponding year. Direct annual savings culminated from 1980 to 1983, and were about $200 million per year. They rose above $200 million in 2000, and savings continue to climb as oil prices increase. In 2000, the present value of the total savings between 1970 to 2000 was estimated at $8,200 million or more than three times Iceland’s national budget in 2000. Opinion might be divided on the estimated savings of using geothermal energy rather than oil for heating purposes. Some might feel, for example, that sources other than oil could be used for heat. Also, heating energy could’ve been 16
obtained through an increased generation of electricity through hydropower, as is done in Norway. Nevertheless, the economic savings garnished by using geothermal energy is substantial, and has contributed significantly to Iceland’s prosperity. Using geothermal energy for space heating has also benefited the environment. Both geothermal energy and hydropower have been classified as renewable energy resources, contrary to carbon fuels such as coal, oil and gas. Geothermal heat is also less damaging to the environment than carbon fuels in that it does not emit CO 2 into the atmosphere. Assuming that geothermal energy used for heating homes in 2003 was equivalent to the heat obtained from the burning of 646,000 tones of oil, the use of geothermal energy reduced the total release of CO 2 in the country by roughly 37%. Besides the economic and environmental benefits, the development of geothermal resources has had a desirable impact on social life in Iceland. People have preferred to live in areas where geothermal heat was available, in the capital area and in rural villages where thermal springs can be exploited for heating dwellings and greenhouses, schools, swimming pools and other sport facilities, tourism and smaller industry. Statistics show improved health of the inhabitants of these regions. 4.1.7 Equalization of energy prices Equalization of energy prices is a decades old Icelandic policy. This policy has been carried out in various ways, such as paying subsidies to those who heat their homes with oil. Families using electricity to heat their homes have also received government subsidies, since 1982 (Fig. 6). In 2002, a new Act on Subsidies was approved. These subsidies now amount to about $15 million per year, and a small part of that goes to lowering the cost of oil where no other means of heating homes are available. The cost of heating is not solely determined by energy prices. Houses differ in their condition, especially older houses, with regards to things like insulation and the control of heating systems. The needs and habits of the inhabitants differ. Therefore the cost of heating two homes of equal size in the same district might vary considerably. The solution for high heating bills might very well be home improvements, or implementing energy saving strategies. The government encourages such improvements to reduce subsidies. Fig. 6. Comparison of energy prices for residential heating September 2005 17
Page 1: GEOTHERMAL DEVELOPMENT AND RESEARCH
Page 4 and 5: Orkugardur, Grensasvegur 9 108 Reyk
Page 6 and 7: 1. Introduction Iceland is a countr
Page 8 and 9: 2. Sustainable Utilization of Geoth
Page 10 and 11: 3. The Nature of Geothermal Resourc
Page 12 and 13: From Reykjadalir in the Torfajokull
Page 14 and 15: Reykjavik Energy 4.1 Space Heating
Page 18 and 19: 4.1.8 The government’s role in de
Page 20 and 21: Fig. 7. Generation of electricity u
Page 22 and 23: service. It was one of the first of
Page 24 and 25: Helga Bardadottir 4.3 Other Utiliza
Page 26 and 27: paprika, etc.) and flowers for the
Page 28 and 29: Oddur Sigurðsson Oddur Sigurðsson
Page 30 and 31: 5.2 Iceland GeoSurvey Iceland GeoSu
Page 32 and 33: Fig. 10. Distribution of UNU Fellow
Page 34 and 35: Iceland Drilling In Uganda, ICEIDA
Page 36 and 37: 6. References 6.1 Publications Arno
Page 40: 40 April 2006

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